EghtesadOnline: The unique conditions of Iranian economy, especially its low amount of foreign debt, help attract foreign investments, a deputy economy minister said.
“With $400 billion worth of gross domestic product and $170 billion in foreign transactions, along with foreign debt estimated to be below $10 billion, the Iranian economy is inherently attractive for foreign investors,” Hossein Qazavi also told a gathering of Bank Maskan’s executives, the bank’s website reported.
“Such an economy is a rarity in the region,” he added in his speech at agent bank of the housing sector, “therefore the pace of foreign investments in the country can be expected to pick up during the years to come, alleviating a portion of the county’s need for finance and creating more capacities for new jobs”.
Hopes of attracting foreign finance have been strengthened since the implementation of the nuclear accord in January 2016, but a series of factors, namely a high risk rating for Iran and the fear of international banks running afoul of US sanctions, have largely contributed to foreign finance falling short of expectations, according to Financial Tribune.
Qazavi, who is the deputy for banking, insurance and state-owned companies at the Ministry of Economic Affairs and Finance, underscored the role of banking system, especially Bank Maskan that holds about 10% of the banking system’s assets, as “highly effective” and “instrumental”.
To create a boom in the beleaguered housing sector, which is still currently suffering from a five-year recession, the official said financing innovations put in place during the first term of President Hassan Rouhani must persist.
“The management team governing Bank Maskan were innovative and launched new instruments to finance the sector,” he added.
Officials and pundits have been heralding a pre-boom state for the housing sector, which is predicted to start in summer, prompting an increase in demand and a moderate rise in prices.
In conclusion, Qazavi emphasized that balancing supply and demand in the housing sector is contingent on balanced financing, as it can reshape the sector into an engine of economic growth.