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Trend of Foreign investments flows in Iran have improved: official

Tehran, Aug 30, IRNA -- Managing Director of Iran Investments, Economic and Technical Assistance Organization (IIETAO) said in Tehran on Monday that foreign prospects in Iran have improved in the current Iranian year started March 20)compared to the past two years.

Mohammad Khazai told IRNA that if the trend is positive the portion of invested capital is also favorable.

"The trend is augmented with the improved situation of the Iranian expatriates capital into the country."

He added that discussion and meeting with potential investors are indicative of a brighter picture of foreign investments flows to the country in the future.

European Banks ad Islamic nations' financial institutions have also clamored to provide credit, form partnerships and commit investments capital to the country's private or state organs.

He also reckoned that foreign investments flows, excluding the oil and gas sector and free trade zones will be fourfold the investments made last year.

He said total amount of investments last year was three times the years before which itself was nine times the preceding year.

Based in the figures approved investments in the first five month of the year was twice that of last year's Khazai said adding that the executive bylaws stipulate that when projects are approved and the capital flows in, "at the minimum 70 percent or more of the intended projects are implemented."

The fact that an investors approve a certain project with in a six, seven month period or a year and shown interest in investing in Iran is good sign in the trend of foreign investments flows to the country.

He further said new investments regulations authorize Iranian expatriates to invest in Iran.

On loan requests to Iran, he added that we prefer the loans by the Organization for Economic and Cooperation and Development's (OECD) terms.

On prospects for commercial credit to Iran, he added that many European financial consortiums have shown interests in providing financial facilities to the country, Khazai said.

Also many international financial institution believe that the investments risk of Iran should be lower than the current ranking of four, he added.

Khazai said that foreign investors have also expressed interest in investing in Tehran Stock Exchange (TSE).

He said "so far, investments proposals to the tune of rls 25 billion have been presented to TSE."

The TSE officials are of the opinion that some restriction should be applied on foreign investments in the proposed executive bylaws pertaining to amount of profit repatriation and level of participation in the exchange, Khazai underlined.

He said enforcing a ceiling on investments is another restriction necessary due to the TSE's unpreparedness to absorb a huge flow of funds.

"The process of foreign investments in TSE should be gradual and systematic," he added.

It is estimated that in the next two years TSE market capitalization will exceed those of the neighboring states.

Last week, Government spokesman Abdollah Ramezanzadeh referred to 'economic market stability`, `drawing up production policies` and 'expediting national production and development pace` as the three pivotal issues on the government's agenda.

Speaking at his weekly briefing session, he added that each of the three major issues have been given necessary attention in the past seven years.

"Concerning market stability, the government has been attempting to prepare safe international and domestic grounds for economic activities.

"Therefore, the nation's foreign policy gave priority to detente and promoting security for foreign investment," he added.

Policies have been drawn up to attract foreign investment, revive various industries including textile, promote electronic trade, draw up new taxation laws to reduce taxes applicable to production and social security laws as well as grant export subsidies.

... Payvand News - 8/30/04 ... --

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