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Iran's capital market increasing: Hosseini

Kerman, Sept 5, IRNA -- Minister of Economic Affairs and Finance Safdar Hosseini said in Kerman on Sunday that Iran's capital market is increasing and moving forward in the right direction.

Speaking at the inaugural ceremony for the newly established Kerman Stock Exchange, Hosseini added that the effects of such an increase can be observed in the national economy.

He cited public demand for capital as among the catalysts to the 6.5 percent growth in GDP of the country in recent years.

Iran's capital market has grown in value from some 62,000 billion rials in 1379 (1990) to over 362,000 billion rials in the current Iranian calendar year 1383 (2004), he said.

The minister said the ratio of the country's capital to total deposits of the non-state sector in the banking system stood at 28 percent in 1379 and has now risen to 70 percent this year.

He said the country's current capital market currently accounts for some 70 percent of the country's total financial capital and put current value of this capital market compared to gross national product in 1379 and 1383 at 11 and 27 percent, respectively.

Hosseini pointed to President Mohammad Khatami's economic strategy for promoting the state economy over the past seven years, saying this strategy would lead to an economy where the private sector plays a vital role.

"Development and promotion of the capital market and stock exchange will be among the effective ways for materializing progress," he said.

He stressed the importance of a policy encouraging growth in the country's capital market and said diversity in the market can also be a tool in solving the unemployment problem and lowering inflation.

The minister reiterated that lowering the risk of investment and support for minor investors are among the top priorities of the capital market, and added that a risk is created when financial and monetary information are limited to a specific group.

He noted that gathering broad information on transactions in the stock exchanges would be the first step in decreasing the risk of investment and called for precise and transparent information in this regard.

Meanwhile, Governor General of Kerman Province Mohammad Ali Karimi assessed the role of regional stock exchanges as "important" in economic development and for boosting provincial investment.

He noted that the stock exchange market is the best place for promoting the common interest of sellers and buyers and for creating a favorable balance in such interest.

The official also lauded the great economic potentials of Kerman province and said the newly established stock exchange can play an important role in furthering its capabilities.

... Payvand News - 9/5/04 ... --

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