Market News

– Yesterday, the first VP of president Rouhani warned about the future of Iranian Pension Funds. According to stats, 100% of Armed Force Pension fundcosts is supplied by the government, directly from the budget sources, while this figure for National Pension Fund is hovering around 70-80%. Donya-e-Eqtesad reviewed the global experience in this regard and advised the administration to take 4 precautionary measures just before the explosion:

• Postpone the retirement by granting interesting incentives in order to slow down the withdrawal of funds (buy some time for revitalization);
• Impose new social taxes and tolls (a new revenue stream);
• Grant these funds a permission to issue long-term debt securities (providing short-term required cash); and
• Force them to sell their low-yield assets ASAP (reduce the management fee and free some liquidity)

– Iran Statistics centre announced the P to P inflation rate of the nation at 13.4% showing a 2.1% contrary to the last month. The worrying part is the fact that the monthly inflation rate hit a new record high of 7.1% which make the annual rate to stand at 32.8%.

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Source:

2018, Iranian Pension Funds; on the edge of darkness!!, Wednesday, Oct 24, p.1,<https://agahgroup.com>