TEHRAN—The First Vice-President Eshaq Jahangiri says Iranian government has been successful to stabilize macro economic indices despite fall in the oil income.
Addressing the 27th Annual Conference on Monetary and Foreign Exchange Policies, Jahangiri said all the success was the result of policies for financial and monetary discipline, management of liquidity and controlling inflationary expectiations.
Jahangiri says the 11th government managed to hand over financial and monetary stability to the 12th government, which is a "big achievement."
He went on to say, "We will be further appreciative of such a stability if looking to the past; once upon a time, major changes were observed in economic indices; restoration of stability with the specifications referred to by the Minister of Economic Affairs and Finance and Governor of the Central Bank, were the result of wise policies adopted by the 11th government."More on government achievements in the banking sector, Jahangiri said inter-banking profit rate lowered up to 17 percent from about 30 percent when the 11th government took over. "Of course the rate has gone a little a bit higher but it is expected to be lowered. Such a banking profit rate will make investment, production and economic activities times more difficult because growth will be expected to take place when banking profit rate lowers in tandum. In the final days of the 11th government, the officials in charge need to and intend to make a precise assessment of the policies adopted in the period."
The government top official said some policies for single parity rate system will be transferred to the next government and it would definitely be pursued in the next government.
"All officials and organs have the duty to move in line with the policies of the Economy of Resistance," said Jahangiri, adding that appropriate investment is needed for better economic conditions. "Over recent years, investment in Iran has been highly negative, following a falling trend and is not yet in a favorable condition."
To address unemployment problem, foreign investment should be absorbed, while attending to non-oil exports and export of goods and services, commented Jahangiri.
Elsewhere in his remarks, Jahangiri thanked banking directors and managers for their invaluable efforts and said the banking system has afforded a great deal of help and assistance to the small- and medium-sized institutions.
He called for banking reforms and said it is the key to overcome challenges facing the country.
Since about two years ago, there have been efforts to provide legislaton on amendment of the banking system so that Iranian banks will operate on international standards in dealing with the overdue debts and capitals and build links with the international banks. "The legislation envisions banking profit rate and acting on it."
