Iranian Pension Funds; on the edge of darkness!!
– Yesterday, the first VP of president Rouhani warned about the future of Iranian Pension Funds. According to stats, 100% of Armed Force Pension fund costs is supplied by the government, directly from the budget sources, while this figure for National Pension Fund is hovering around 70-80%. Donya-e-Eqtesad reviewed the global experience in this regard and advised the administration to take 4 precautionary measures just before the explosion:
- Postpone the retirement by granting interesting incentives in order to slow down the withdrawal of funds (buy some time for revitalization);
- Impose new social taxes and tolls (a new revenue stream);
- Grant these funds a permission to issue long-term debt securities (providing short-term required cash); and
- Force them to sell their low-yield assets ASAP (reduce the management fee and free some liquidity)
– Iran Statistics centre announced the P to P inflation rate of the nation at 13.4% showing a 2.1% contrary to the last month. The worrying part is the fact that the monthly inflation rate hit a new record high of 7.1% which make the annual rate to stand at 32.8%.
In the Market
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com