Productivity or the government’s new pet for the stock exchange? Will the bitter experience of 1999 be repeated? – Tejarat News

According to Tejarat News, the issue of transfer and privatization of state property has been raised for several months and the authorities consider the capital market to be the best solution for this transfer and privatization.

It was last year that the issue of productivity was brought up and it was decided to hand over or privatize a set of government properties so that low-yielding and stagnant properties can be used again.

It can be said that productivity means that the government identifies unused properties or properties that have added value or low productivity and have been abandoned for years, so that by selling and handing them over, these stagnant capitals are optimally used and, in other words, productive.

Most of the government officials believe that the best way to generate government property is to enter it into the capital market so that it can be bought and sold at the best price using transparent transactions.

Funding the budget deficit from the capital market

Habil Khavari, a senior capital market expert, told Tejaratnews: “Should the government prepare infrastructure for production through the capital market and announce which assets will be offered on the stock market?” Is it supposed to get its hands on the shares of stock exchange companies that are owned by the government, or all movable and immovable properties that the government has in other areas, such as municipalities or other companies, will also be accepted in the capital market?

He continued: “The quality and quantity of this handover is not clear yet, and it seems that it is only the assets of the banks, education and farming methods, which will be offered in the production plan.”

This capital market expert stated: “Productivity simply means that we bring a stagnant asset to productivity, and in economic terms, productivity means any effort and action to increase the productivity of the asset in question.”

He emphasized: “However, the government selling only state-owned companies on the stock market is not productivity, it is only financing or financing the budget deficit.”

The government’s failed experience in the stock market

Referring to the government’s failed experience in offering its property and shares in the stock market, Khavari said: “The First Refining Fund is a failed experience of the government, which has now returned to prices higher than the supply after three years. At that time, those who bought this fund faced the phenomenon of inversion of public opinion, and public confidence in investment was also affected.

According to this capital market expert, the government should specify what type of assets it sells with what mechanism and rank them. He explained about this: “If the asset is going to be sold in the production plan, it should be determined whether it is profitable or not?” Is it stock or property? If these are determined and a precise mechanism is determined, it can cause the prosperity of the capital market.

Khavari explained: “If the government wants to sell shares, it can issue secondary bonds at the same time from the beginning of the work. Commodity exchange is also a suitable option for physical assets; Of course, I think it is unlikely that the government will use the platform of the commodity exchange for supply, and probably traditional methods such as auctions and tenders will be used.”

This capital market expert continued: “In the production plan, if the government does not sell the physical assets through the capital market, it has done Twig rent again.”

He stated: “If the government only wants to do productivity, it should not spend them on budget deficit and financing; Rather, put them in the investment sector.”

This capital market expert explained: “Due to the failed experience of the past, which caused the capital market to fall back three years, the trust in managers and investment was lost, many funds went to invest in fake assets and caused a series of economic convulsions. Now, if they want to do this, they have to cover the risks according to the economic tools.”

When will the production take effect?

In response to when the productivity increase will be implemented in the stock market, he said: “If the government is under pressure only to cover the budget deficit, the productivity increase will be done quickly in the capital market; But if the government is not under pressure and wants to do something right, it is unlikely that the production plan will be implemented this year, because it will be a complicated and heavy plan.”

Khavari continued: “The production process will be very complicated; But if the government just wants to do productivity on the banks, it will have positive results; Although I don’t think this production will be done within a year.”

Finally, he emphasized: “If the only goal of production is financing and handing over a series of assets without planning, this will be done in one to two months of this production.”