EghtesadOnline: Head of the Security and Exchange Organization Shapour Mohammadi said Monday the capital market issued 45 trillion rials ($384 billion) worth of bonds since the beginning of the current fiscal in March to help meet the financial needs of companies.
The money market and capital market play a crucial role in financing companies and deserve higher priority, he said.
In his opinion high liquidity is a merit for the capital markets and not a negative feature as some economic experts imply. "Efficient financial instruments and incentives as well as large volumes of tax-free deposits are other merits of such markets."
Financing companies through banks or capital markets via stable lending rates is important for which a special committee has been created in the parliament to determine finance rates on a negotiated basis, Mohammadi told the first National Conference on Corporate Banking.
According to Financial Tribune, he said issuing short term Murabahah bonds - an Islamic financing structure in which the seller provides the cost and profit margin of a commodity - is another avenue for providing liquidity, noting that some companies are not fully aware of the benefits of Islamic financial instruments.