Business And Markets

Iran Gov’t Embraces Downsizing in Earnest

Iran Gov’t Embraces Downsizing in EarnestIran Gov’t Embraces Downsizing in Earnest

The government in Tehran plans to divest the residue of its stakes in 18 companies, estimated at 520 trillion rials ($3.2 billion).  
According to a report by the Ministry of Economy, the divestitures are in line with efforts to help curb government intervention in the economy, the ministry’s news website reported.
Two main divestiture policies are on the table, namely selling in cash to potential buyers and offering shares via exchange-traded funds. 
The government seemingly prefers the former and if it does not produce  the desired results it will take the ETF path. Offering shares via ETFs has the benefit that it lets a large number of people with small funds buy shares. 
The ministry noted that executive guidelines to offer shares via ETFs have been prepared and approved by the High Council of Securities and Exchange—the stock market policymaking body. 


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