Overview: Iran Analysis Weekly Report March 13, 2016
Mar., 2016
Vistar Business Monitor
Prominent Reformist and elected parliamentarian Mohammad Reza Aref stressed the importance of the runoff elections during a conference on March 6. He stressed that Reformists require a “decisive majority in Parliament” and estimated that Reformist candidates need to win 60 percent of the 69 runoff elections in order to do so.
President Rouhani praised former President Khatami by name as “my dear brother” and announced that Iran “will never forget its servants. No one can erase the names and greatness of those who have served the people.” Rouhani denounced the judiciary-mandated media ban on the former president as a “joke.” “The Supreme National Security Council has passed no such resolution on Mr. Khatami. From day one up until now, I have been in this council. There has not been any resolution, and at no time has one been debated.”
Judiciary Spokesman Mohseni Ejei criticized Rouhani’s comments during a press conference last week and stated that Rouhani does not remember the Supreme National Security Council’s resolution on the media blackout “because he is so busy.”
The IRGC tested a variety of short and medium-range ballistic missiles during military exercises on March 8 and 9. Tehran demonstrated its “deterrent” capabilities by launching the ballistic missiles. These tests have drawn knee-jerk condemnatory reaction from Washington tempered by an admission that the tests don’t violate last year’s historic nuclear accord. The IRGC test-fired Ghadr H and F-type missiles from the Alborz Mountains in northern Iran at a target 1,400 kilometers away off the southeastern Makran coast. The IRGC also reportedly tested two Shahab 3 ballistic missiles. United Nations Secretary-General Ban Ki-moon has called on Iran to act with moderation and refrain from taking actions that lead to increased tensions.
On the economic note, the Central Bank of Iran is developing a set of criteria for assessing domestic banks which will be ready in the next fiscal year (starts March 20). The CBI is putting together a series of standards for banking operations, supervision of banks and liquidity management. By publicizing each bank’s capacities and services, the regulator will help depositors make informed choices. They will know to what extent banks meet their commitments in lending practices and the services they offer.
The economy grew a meager 0.7% during the nine months of the Iranian year (ended Dec. 21, 2015), says Government Spokesman Mohammad Baqer Nobakht. “Unlike last year, we were not successful in achieving an agreeable economic growth, due to limited oil revenues. Good growth needs investment,” Nobakht said.
The Supreme Council of Labor approved last week that minimum wage be increased by 14% for the next fiscal year, from 7.12 million rials per month to 8.12 million rials. However, other items of the compensation package are set to remain unchanged.
To stimulate the real estate sector, the Money & Credit Council of Iran (MCC) has increased the maximum amount of mortgages for the second time in less than a year. According to the MCC, the new plan will increase the LTV (Loan to Value ratio) to over 50%. Aside from the scheme of providing IRR 1.6 billion in mortgages, another plan has also been introduced with fewer limitations. According to this plan, applicants would be able to receive mortgages up to IRR 1 billion in Tehran by buying mortgage rights in the securities market.
Table of Contents
Notes
Overview
News Highlights
Economic Affairs
Macro-economy
Iranian Banks Have a Long Way to Re-Integrate into the Global Financial System
14% Raise in Minimum Wage
JCPOA II
JCPOA II for Economic Reform
Can Rouhani Stop Systematic Corruption in Iran?
New Plans to Stimulate Housing Market
Macro-economic Data
Oil and Gas
Weekly Review
Iran Slowly Increasing Oil Market Share
Trade and Agreements
Domestic Affairs
Parliament and Assembly of Experts Elections
How Iran will proceed after the Elections?
A Possible Compromise in the Parliament
IRGC Test-Fires Missiles
Making Trouble in JCPOA
Key Political and Economic Calendar
International Affairs
Iran and Saudi Arabia’s Cold War
Syria Peace Talks Resume
Laws, Regulations and Policy Updates
Sanctions
Iran Continues to Have Significant Problems Finding Foreign Banks
Anti-Money Laundering Law Passed
On Par with International Laws
Rating Improvement
Financial Markets
Tehran Stock Exchange
Foreign Exchange Market
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