Official lauds reduction of investments risk, stable economy
Tehran, Aug 23, IRNA -- Deputy Governor of Central Bank of Iran (CBI)
Mohammad Jafar Mojarad said here Saturday that the reduction of
investment risk from six to four is among positive gains of the
"Hopefully, with the right diplomatic efforts and joint
investments, the risk will be lowered to three."
Speaking at Iran`s First Economic Diplomacy Seminar, he added that
by reducing bureaucracy, Iranian exports will be in a more competitive
position in international markets.
Observance of international standards and norms regarding trade
and international issues, easing restriction on foreign investments,
and in trade and foreign exchange area are all mandatory for
establishing a good record in regional and international markets.
He further stressed the need to create sustainable conditions for
growth in the Third Five-Year Socio-Economic Development Plan (March
Despite an unstable condition in the world economy, the right
financial and monetary policies led to high growth rate of the economy
and its stability, the CBI deputy governor underlined.
Mojarad further highlighted the economic sector`s positive
performance in reducing the country`s dependence on oil revenues. The
issuance of international bonds are an added source of diversity to
garner foreign exchange, he added.
Meanwhile, Deputy Minister of Economy and Finance Mohammad Khazai
said here last month that the number of applications for foreign
investments rose in Iran last year and equaled to the total foreign
investments commitments in the past decade.
Khazai, also head of Iran Foreign Investments Organization, said
that with the passing of the new foreign investments law the interest
in investments in the country by foreign entities has topped four
billion since last July.
In a decade (1992-2002) close to 4.5 billion of foreign
investments were committed in the country, he added.
However, he said `even if all the requests are approved it will
equal only one-fourth of planned foreign investments target`.
He also cautioned that the amount of investments in Iran is
insignificant to those in neighboring nations.
Foreign investments in Malaysia, Turkey and Azerbaijan were dlrs
3.5 billion, dlrs 783 million and dlrs 691 million in 1999 and 2000
(before the September 11 attacks in the US) respectively.
"In the same period Iran drew about dlrs 89 million of foreign
investments," Khazai underlined.
He said that the mining sector drew dlrs 1.242 billion and
industrial sector dlrs 1.4 billion of foreign investments in recent
year up to March 2003.
Khazai said foreign investments does not only entail garnering
financial resources and covering budget deficiencies, it also means
greater access to new technologies, employment generating schemes, and
increase productivity of production and more efficient management.
In addition foreign investments is an impetus for closer
diplomatic and economic ties through easier access to international
capital markets and financial sources. http://www.irna.ir/#2003_08_2319_57_529