Economy, Domestic Economy

Private sector Needs Space

Private sector Needs Space
Private sector Needs Space

There is no legal impediment to the transfer of state-owned equities to semi-private companies and the government should seek alternatives for encouraging the private sector to take part in the ceding process, Ali Tayebnia, the minister of economy and finance said during a meeting of the board of directors of Iran's Privatization Organization (IPO), as IRNA reported on Monday.

The minister said that the current conditions of the business environment are not satisfactory due to the existence of unnecessary regulations which constrain private sector activities. According to Tayebnia, another problem is that the appropriate regulations are not followed fully. "For instance, Article 44 of the Constitution - which underscores the positive impact of privatization and competitiveness in business environment - has been partially neglected," he added.

Tayebnia added that according to the new regulations introduced for the current Iranian calendar year (March 21, 2014 – March 20 2015), the privatization organization is not legally allowed to transfer state-owned equities to entities in an attempt to pay back part of the government debts – a move that is aimed to boost competitiveness.

"The government has passed some approvals according to which if the private sector wins the tenders they will receive benefits, including an extension of loan repayment period," he said.

Tayebnia also expressed his satisfaction with IPO's performance in transferring governmental shares during the past year and hoped that the improvement of capital market would positively impact the process of privatization.

IPO published the list of divestible companies for 2014-2015. The list, which includes 186 state-owned companies, has been prepared after extensive consultations and in-depth analyses, the organization's website reported. IPO has practically has engaged in a variety of activities set according to the organization's new objectives and tasks – based on the law on implementation of general policies of the Article 44 of the Constitution" - since 2008. It is a governmental company affiliated to the ministry of economic affairs and finance, having legal entity and financial independence. The president of IPO and the head of its executive board is the deputy minister of the economy ministry.