42.9% decrease in bond sales in the past

According to Iran EconomistIn response to the report of the 26th of April 1402, the Central Bank of Tivat newspaper titled “Inflation control and production boom are impossible without stopping corrupt and anti-development practices”, the central bank explained: At the beginning of the article, it was mentioned that about 650 thousand billion tomans of resources Note 14 of the budget, 460 thousand billion tomans debt to the social security organization and 570 thousand billion tomans settlement of the government’s debt to the banking network are not included in the budget law of 1402 of the whole country. Regarding the non-inclusion of about 650 thousand billion Tomans in the resources of note (14) in the budget of 1402, it is reminded that in accordance with the Law on Targeting Subsidies, the management of funds, credits and expenses related to the targeting of subsidies was the responsibility of the Organization for Targeting Subsidies, which is still It is being operated, followed and implemented.

In addition, according to the regulation of the tables of sources and expenses of note (14) in the annual budget rules by the government, there is no lack of transparency regarding the sources and expenses of the mentioned note. Besides, it seems that according to the need to pay and carry out the necessary expenses of note (14), the separation of its resources and expenses from the general budget of the government will help to allocate the resources of note (14) as quickly as possible. It is obvious that the elimination of unnecessary and unrelated rows with the primary goals of creation of expenditures in Note (14) is approved in achieving the goals of targeting subsidies.

In another part of the above article, he raised the issue of “extreme insistence on borrowing from the National Development Fund, excessive selling of bonds and excessive selling of the country’s assets, and asked why schools should be sold?” Regarding “borrowing from the National Development Fund”, it should be noted that although the fund was formed with the approach of preserving intergenerational wealth; However, considering the role and function of this fund in reducing the effect of fluctuation of oil revenues and creating economic stability, in the current situation of the continuation of economic sanctions, the use of the resources of the National Development Fund is considered one of the inevitable measures of financing the government budget. In addition, regarding financing through the “issuance and sale of Islamic financial bonds”, it is noted that according to global experiences, government debt securitization and government financing through the issuance of financial bonds is one of the ways to compensate and cover the budget deficit. the government, if it is done within the prescribed framework for the financial stability of the government; It is considered a suitable approach for transparency, organizing and disciplining the government’s debts on the condition of maintaining the financial stability indicators of the government.

It should be noted that the sales of Islamic financial bonds in the eleven months of 1401 compared to the same period of 1400 decreased by 42.9%; Therefore, it does not seem that the government has made an extreme sale of these financial bonds. In addition, the ratio of government debt to GDP is at a lower level than the 40% ceiling stipulated in the law of the sixth development plan.

In another part of the article, “Forgetting the lessons of playing with currency in 1401” is mentioned and titled: “One of the dangerous examples that is at the heart of our warnings about the possibility of repeating the disasters of 1401 and is expected to prevent it, paragraph ( 6) It is an addition to note (1) of the budget. In this resolution, in the name of increasing the incentive to return export currency, protecting the country’s foreign exchange reserves, minimizing fluctuations, etc., the most volatile mechanism to disrupt the entire economy is embedded. The summary of the story is that there has been a suspicious de-governance regarding the exchange rate and the government has been told not to sell the currency cheaper than the set figure; But if there is a mutation, it doesn’t matter.”

Regarding the way of spending the foreign exchange resources of the government in the public budget, it should be mentioned that during recent years, the entire share of the government’s foreign exchange resources from the sale of oil has been used for the supply of basic goods and medicine at a preferential rate, and sometimes the government has also faced a deficit of resources. Therefore, the government does not get any income from the increase in the exchange rate. In addition, in order to manage the foreign exchange market and within the framework of the economic stabilization policies of the government and the central bank, it has been decided to set a rate in the currency remittance market in accordance with the economic conditions and realities of the country, and for a certain period, the real needs of the economy in the field of production and investment. Domestic enterprises as well as consumer and essential goods needed by households should be answered with this rate.

Therefore, it is expected that the policy of stabilizing the price trend in the remittance market as a short-term policy and as the main source of foreign currency supply for the country’s imports, along with the government’s regulatory measures in the distribution chain, will have positive effects in the form of stabilizing the prices of both groups of imported goods and domestic products. to be accompanied However, adjusting the exchange rate according to the macroeconomic requirements is justified and it is necessary to consider the adjustment of the exchange rate corresponding to other economic variables such as foreign exchange sources and expenses and in order to resolve imbalances.

In the rest of the article, it is stated that “the share of usurpation of banks in the total price of listed companies is between 25 and 29 percent”. Regarding the above claim, it is necessary to explain that the author means the share of usurpation of banks in the cost price of listed companies. If the writer means the share of financing cost from the cost price of manufacturing enterprises, in this regard it should be mentioned that the analysis of the financial statements of selected industries shows that the average share of financing cost from the cost price during the years 2018 to the third quarter of 2011 is equal to 7.5 is a percentage But if the author means the finished rate of bank facilities or the effective rate of financing, he points out that based on the mentioned financial statements, the average effective rate of financing (bank interest) from 2018 to the third quarter of 2011 was equal to 19.2 percent.

Currently, according to the approval of the Money and Credit Council regarding the increase in the interest rate of the facility from 18 to 23% in February of last year, it seems that the effective rate of financing selected industries on the stock market in 1402 will increase to figures above 25%. However, considering the average inflation rate of 42.5% during the last 5 years (1401-1397), practically the real interest rate of granting banking network facilities has been negative, and the recent rates of facilities are still considered the preferred interest rate.