President Rouhani has announced the implementation of a banking development plan as the most important financial package for the country’s economic boom in the current Iranian year (began March 20).
Hassan Rouhani made the remarks at a meeting of the government’s economic staff saying “the plan aims to meet the needs of the national economy as well as to stabilize the banking system.”
“The main objective pursued by the banking development plan is to strengthen banks for providing manufacturing firms with loans,” underlined the Iranian President adding “economic prosperity can be guaranteed by clearing the government’s debts to contractors through securities.”
Rouhani further noted that the plan will initiate an important process in monetary discipline and transparency for government debts; “thus, the complexity of these areas will be removed in order to facilitate financial issues for immediate support of productive and employment-boosting sectors.”
The President expressed hope that Iran’s current bank-centered economy will move towards capital-based economy in step-by-step fashion; “transparency in the relationship between governments and banks will add to the public confidence in the banking system.”
The official divided the country’s economic conditions over the past ten years into two periods; “the first interval coincided with massive oil revenues which caused problems for employment and job creation leading to high inflation.”
“The process was intensified by imposition of international sanctions against the country given the surge in currency rates,” he continued.
Rouhani later pointed to lack of transparency in the amount of government’s debts to banks calling for transparency in government’s debts and methods for their repayment; “in this regard, the government will issue Islamic Treasury Bills to mark a basis for representing economic conditions of the government and the society.”
“Accordingly, problems faced by contractors will be alleviated giving a new lease of life to the firms affiliated with contractors leading to better conditions for economic prosperity inside the country,” he underscored.
Iran’s President pointed to a bill recently submitted to the Parliament in relation to the banking system saying “with the passage of the bill and implementation of the banking system development plan, Iranian banks will gain power, the government will become creditworthy as well as that financial instruments will be directed towards growth and prosperity.
“The new plan is also in line with tenets of Resistance Economy by providing the ground for a promising development in the country’s economy and banking system,” underlined Rouhani.
Also at the end of the session, Governor of Central Bank of Iran (CBI) Valiollah Seif told the reporters “the banking development plan will become operational today at the order of the Iranian President.”
“The project aims to increase and regulate facilities offered at by the country’s banking system,” maintained Seif.
He further emphasized that “the project will create a new atmosphere in which the efficiency of the banking system as well as fiscal discipline and transparency of the government will be increased offering a more prominent role in long-term financing of large firms.
“All these features will provide banks with strength and balance required in their financial structure in order to make them reliable in international relations while undertaking foreign trade and international communication tasks,” stressed CBI governor.