Status of JVs Enhanced

The Central Bank of Iran requires banks to consider Iranian companies’ joint ventures with foreigners as a single entity. The measure allows joint venture companies to apply for large loans and other benefits reserved for such entities from the banking sector, according to a statement published on CBI’s website on Wednesday. The CBI statement notes that the recent Money and Credit Council’s ruling is only applicable to JVs where foreigners hold at least 50% of the total shares. The CBI decision is aimed at incentivizing foreign investments in Iran and encourages foreigners to put their money into production of exportable goods in Iran. The measure is also expected to pull the economy out of the recession and improve the tight money situation.