Tuesday, January 04, 2005

Privatization: Iran's government ready to cede more shares

Iran Mania News: "Iran's government ready to cede more shares

Saturday, January 01, 2005 - ©2004 IranMania.com

LONDON, Jan 1 (IranMania) - The government has announced its readiness to cede the shares of banking, insurance and steel sectors as per an approval of the State Expediency Council.

Deputy Economy Minster of legal and parliamentary affairs Heidar Mostakdemin Hosseini further told ISNA that the cabinet has been working on an action plan to facilitate the transfer of shares and will go ahead with the plan soon as it is officially notified of the new SEC ratification.

The State Expediency Council last month overturned a key article of the Constitution to allow large-scale privatization in a bid to overhaul the country's sluggish economy.

The official disclosed that shares of more state-owned companies will, in the coming days, be up for sale to the private sector by the Privatization Organization.

Iran's privatization drive is modeled after Germany's experience following reunification.

To this end, reorganizing state-owned companies and setting up holding companies in the Third Five-Year Development Plan (March 2000-2005) are the important tasks of the privatization policy.

The government says it wants to keep at least 35% of the shares of banks which are to be privatized, so that the state can exert its control in the sector.

Analysts say Iran's inefficient state-owned banking system is a bottleneck for the national economy."

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