Page 36 - IRANRptAug18

confronted by requests for extra money given the average per square metre price of property is on the rise. As prices increase amid rising demand, Tehran developers often try to make units more affordable by cramming small apartments into a building. Where one might expect to find a plan for five apartments, they frequently apply for a building permit for 10 units.
Iran - Financial market as of Jun 2018 as of Mar 2018 as of Dec 2017
Equity market index
111,528.2 96,938.8 95,561.5
Market capitalisation: % of GDP
23.9% (2017) 25.6% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange 100.66 102.15 105.98 (TSE) (USD bn)
PE ratio: TSE 6.76 6.49 7.01
Index: Tehran Stock Exchange: TEDPIX 111.53 96.94 95.56 (USD bn)
Source: CEIC
8.4 International ratings
OECD downgrades Iranian, Turkish credit risk ratings, Turkmenistan’s score unchanged
Economically troubled Iran and Turkey have had their credit risk ratings downgraded by the Organisation for Economic Cooperation and Development (OECD), although the rating of Turkmenistan, which is enduring a financial crisis, was left unchanged.
On the list of Country Risk Classification of Participants to the Arrangement of on Officially Supported Export Credits, as of June 25, Iran’s rating fell to 6 from the 5 it received in January, while Turkey’s rating fell from 4 to 5. Turkmenistan remained on 6, where it sits with country’s including Uzbekistan (unchanged). Both Turkey and Iran are battling a currency collapse.
The worst score given by the OECD to countries faring badly, such as Afghanistan, is 7.
8.5 Fixed income
8.5.1 Fixed income - bond news
Iran plans bonds to fund oil projects says head of SEO
Iran is planning to issue bonds in coming months to fund oil projects, the head of its Securities and Exchange Organisation (SEO) said on June 12. “The Securities and Exchange Organization and the oil ministry have been negotiating for one and a half years over the issuing bonds for oil projects... We are hopeful that this would be implemented in a few months,” the head of the SEO, Shapour Mohammadi was quoted as saying by state news agency IRNA.
“This will help all Iranians to participate in investment in oil projects,” he added. Reuters reported that it was not immediately clear whether Iran would seek foreign buyers for the bonds, something which could prove difficult given concerns among Western companies that they could be penalised by Washington for continuing to work with Tehran.
The US sanctions on Iran’s oil industry will take effect on November 4,
36 IRAN Country Report August 2018 www.intellinews.com