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Cabinet Approves ICD Share Increase

Cabinet Approves ICD Share IncreaseCabinet Approves ICD Share Increase

Members of President Hassan Rouhani’s Cabinet approved a measure at the recommendation of the Ministry of Economic Affairs and Finance which allows the ministry to increase the capital of Iran in the Islamic Corporation for the Development of Private Sector.

“On behalf of the government, the ministry of economy is hereby allowed to take part in the second round of increasing the shares of the ICD, affiliated with the Islamic Development Bank, by adding 3,473 shares worth $34.73 million,” reads the directive as published by IBENA.

The directive, which was signed by First Vice President Es’haq Jahangiri, adds that the Central Bank of Iran is obligated to tap into its resources in order to pay the installments regarding the increase in the government’s shares in the ICD.

The CBI is to register the payments under “government shares in international institutions” which means that the economy ministry will have to give the rial equivalent of the tranches to the central bank in the form of promissory notes.

The ICD is a multilateral development financial institution established in November 1999 to support the economic development of its member countries and has an authorized capital of $4 billion.

The IDB, 53 Islamic countries and five international public financial institutions are the current shareholders of the ICD.

 

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