Iran plans to offer price and tax incentives to private investors to
take over idle state projects and help boost the economy, state media
reported on Saturday July 28,2018 , as the country faces likely US sanctions and the
exit of many foreign companies.
In May 2018 the United States pulled out of a multinational deal to lift sanctions against Iran in return for curbs on its nuclear programme, and Washington has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.
The new Iranian plan, along with action against alleged financial crime, appears to be aimed at easing concern over the US decision.
The probable return of sanctions has triggered a rapid fall of Iran’s currency, protests by bazaar traders usually loyal to the Islamist rulers, and a public outcry over alleged profiteering.
The plan will offer attractive prices and flexible terms as well as tax holidays for investors who agree to take over some of the 76,000 government projects which are unfinished or idle, Vice-President Eshaq Jahangiri said on state television.
Note
The sanctions start to come into effect in August but some European companies investing in Iran and with big US operations have already announced they will pull out of business deals with Tehran.
The Iranian rial plunged to a record low against the US dollar on the unofficial market on Saturday July 28,2018. The dollar was offered for as much as 97,500 rials, compared to about 85,500 a week ago
The currency has lost more than half of its value this year because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.
In May 2018 the United States pulled out of a multinational deal to lift sanctions against Iran in return for curbs on its nuclear programme, and Washington has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.
The new Iranian plan, along with action against alleged financial crime, appears to be aimed at easing concern over the US decision.
The probable return of sanctions has triggered a rapid fall of Iran’s currency, protests by bazaar traders usually loyal to the Islamist rulers, and a public outcry over alleged profiteering.
The plan will offer attractive prices and flexible terms as well as tax holidays for investors who agree to take over some of the 76,000 government projects which are unfinished or idle, Vice-President Eshaq Jahangiri said on state television.
Note
The sanctions start to come into effect in August but some European companies investing in Iran and with big US operations have already announced they will pull out of business deals with Tehran.
The Iranian rial plunged to a record low against the US dollar on the unofficial market on Saturday July 28,2018. The dollar was offered for as much as 97,500 rials, compared to about 85,500 a week ago
The currency has lost more than half of its value this year because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.
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