Jump in foreign investments in Iran’s OTC

Iran’s media have reported a major rise in foreign investments made in the so-called over-the-counter (OTC) market or better known in Tehran as Fara Bourse.

The English-language newspaper said in a report on Monday that the OTC has already attracted Rials 2 trillion (about $57.7 million) in foreign investment so far in the current Iranian calendar year (started 20 March).

The figure is equal to the total investment made during the past calendar year, the Tehran Times has quoted OTC Managing Director Amir Hamooni as saying.

“These foreign investments are attracted via investment funds or foreigners purchasing shares and securities in OTC market,” Hamooni added in a report that was also carried by IRNA.

The official noted that following the implementation of the nuclear deal with the world powers, OTC has witnessed a rush of foreign applicants for buying Islamic Treasury bills and is ready to facilitate foreigner’s presence and activities in domestic debt market.

Hamooni elsewhere announced that the administration is taking the final steps of issuing Rials 10 trillion (about $288.7 million) of Islamic Treasury bills, which were introduced last summer on the way to repay its overdue debt to contractors.

According to him, the incumbent administration is the guarantor to the issued Islamic Treasury bills as well as the offered sukuk al-ijara.

In the wake of the lifting of economic sanctions against the Islamic Republic in January, the government is rolling out a series of initiatives to develop the country’s capital market and reduce local firms’ reliance on loans from a debt-laden banking sector.

By Press TV