Page 38 - IRANRptDec20
P. 38
Iran’s central bank orders commercial lenders to provide 3-month ‘coronavirus grace period’ on loans
institution. It remains unclear how this method will be policed or if fines will be levied on those who fail to comply.
According to the governor of the CBI, Abdolnaser Hemmati, some $280bn has been injected into the local foreign exchange market in the past 15 years to support the rial.
The regulations for taking hard currency in cash out of Iran have not been changed. There is a limit of €5,000 that applies to those travelling by air, whereas the limit is €2,000 for those travelling by land.
This is while there is no limit on carrying foreign currency into Iran. Those bringing in hard currency may do so potentially with no questions asked.
The Central Bank of Iran (CBI) has ordered all commercial banks to offer a three-month repayment grace period on loans to counter financial difficulties caused to people by the coronavirus pandemic.
Iranian businesses are losing millions of dollars a day due to the collapse of footfall in the country, with so many people staying indoors and not venturing out to raise their chances of not contracting the virus, also known as COVID-19.
The CBI took its decision following an approval given by the governmental Money and Credit Council to help commercial operators through the ongoing epidemic. Loan repayment deferrals from March 20 will also be available to urban and suburban travel operators, including air, road and rail enterprises. In addition, seaports will be exempt from loan repayments for the awarded three months.
8.3 Stock market
Burst bubble Tehran Stock Exchange loses another 5.5% in week
A 5.5% drop in the TEDPIX on the Tehran Stock Exchange (TSE) saw the benchmark index drop 69,000 points to 1.221mn in the Iranian calendar week to November 13.
Considering the index for the first time made it past the 2mn-point threshold in early August, the bursting of the bubble and descent have been dizzying for investors, especially retail investors who faced with a collapsing Iranian rial (IRR) and other rotten investment prospects caused by heavy US sanctions turned to the bourse in the hope that decent returns were on offer.
Prior to the latest weekly drop, the TEDPIX recorded a slight weekly gain of 2,000 points, or less than 1%.
There has been little movement in the severely depreciated rial versus the dollar even since it became clear that Iran’s nemesis, US President Donald Trump, was defeated in the November 3 presidential election. There are hopes that President-Elect Joe Biden will offer Iran a way out of its economic crisis, but any big change is not expected to occur overnight. Even the jockeying as to whether the Biden administration and Terhan will agree to talks could be prolonged.
During the past week, on the TSE the indices of Iran Khodro Group, Saipa Group, Bank Saderat Iran, National Iranian Copper Industry Company, Mobarakeh Steel Company, Bandar-Abbas Oil Refinery, Tamin Cement Investment Company, and Abadan Power Generation Company were the most traded indices, according to the Tehran Times.
38 IRAN Country Report December 2020 www.intellinews.com
