Page 34 - IRANRptJul18

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 Mar 2018 as of Dec 2017
Equity market index
96,938.8 95,561.5
Market capitalisation: % of GDP
25.6% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange (TSE) 102.15 105.98 (USD bn)
PE ratio: TSE 6.49 7.01
Index: Tehran Stock Exchange: TEDPIX 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, although many European refiners, as well as buyers in Asia, are already winding down Iranian oil purchases.
34 IRAN Country Report July 2018 www.intellinews.com