NEWS
Banks   Investment  

Upgraded Risk Rating to Boost Iran’s Int’l Standing

The Central Bank of Iran has welcomed the country’s risk rating improvement from 6 to 5 by the Organization for Economic Cooperation and Development, regarding it as another promising signal of the country’s enhancing financial and credit status in international markets.

In a statement published on its website, CBI noted that firstly, Iran will be able to receive foreign facilities at lower interest rates as a result of the upgrade announced on Friday.

“Secondly, the cost of insuring the loans received from outside the country will decrease, following the upgrade in risk rating,” it adds.

A better rating gives Iran more negotiating power in terms of setting conditions of financial deals signed with other nations while ultimately, “the atmosphere of an improved risk rating is a positive atmosphere in working with other banks and countries that will also serve to gradually eliminate the misperceptions that had formed about Iran’s financial system during years of sanctions”.

However, CBI maintains its stance that Iran deserves a better risk rating than its current 5 and will continue to improve it.

CBI Governor Valiollah Seif on Friday reacted to the improved rating on Twitter and referred to it as the fruit of unyielding efforts by the country’s banking system and businesses.

“Let’s prepare ourselves for economic reforms with increased cooperation,” he tweeted.

The head of the Organization for Investment, Economic and Technical Assistance of Iran, the main entity in charge of negotiating foreign finance and credit deals, also reacted to the upgrade.

“Political stability and security have led to the improvement of Iran’s risk rating in the eyes of OECD,” Mohammad Khazaei also told the state TV broadcaster.

Following hard-hitting unilateral sanctions, Iran’s risk rating had been downgraded to 7 but was subsequently improved to 6 last year. Iranian officials emphasize that the country deserves a much better rating in light of its high annual growth rate, high national reserves and low foreign debt to GDP ratio at 2.2%, which is lower than that of many other countries.   

News No: 1865
Date: 2018/01/28 - 21:24
News Source: Financial Tribune

Central Bank of Iran  Valiollah Seif  OECD 

Comments:

Leave a Comment:

   
   
   
 

ICCIMA calls government’s coronavirus support package ‘inefficient’

Members of the industry committee of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), in a meeting, criticized the inefficiency of the government’s support packages against the impacts of the coronavirus outbreak.
 

Iran Sees 13.5% Growth in Non-Oil Exports Last Year

Export volume of non-oil commodities in the last Iranian calendar year [ended March 19] stood at 133.9 million tons, showing a 13.5% surge as compared to the previous year, head of Iran’s Mine House Mohammad Reza Bahraman said on Wednesday.
 

Over $3b allocated to supply basic goods in 2 months

Governor of Central Bank of Iran (CBI) Abdolnaser Hemmati said the bank has managed to supply over $3 billion foreign currency for importing basic goods in the first two months of the current Iranian calendar year (March 20-April 19).
 

CBI targets annual inflation rate of 22%

Central Bank of Iran (CBI) in a statement on Tuesday announced that the annual inflation rate for the current Iranian calendar year (ends on March 20, 2021) is set to be 22 percent.
 

Non-oil exports booming as pandemic subsides

Governor of Central Bank of Iran (CBI) Abdolnaser Hemmati said the country’s non-oil exports are improving following a downtrend of the coronavirus cases in the country, IRNA reported.
 

CBI capable of controlling currency market: governor

Governor of Central Bank of Iran (CBI) Abdolnasser Hemmati says the bank is going to control the currency market just like it did in the previous year, IRNA reported.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners