The Central Bank of Iran (CBI) has authorized banks to provide up to 100 trillion rials (approximately $200 million) to support the stock market.
The directive was approved during a meeting of the CBI Supreme Council, chaired by Governor Mohammadreza Farzin. The initiative is aimed at boosting market stability and fostering growth within the capital markets.
CBI Governor Farzin emphasized the importance of addressing shareholder concerns in the allocation of these resources, urging the Securities and Exchange Organization (SEO) to ensure the funding effectively strengthens the market.
Earlier, Farzin introduced several measures to support listed companies and small shareholders. These include guaranteeing 3.6 quadrillion rials ($7.2 billion) in bonds for banks, enabling them to provide working capital to companies on the stock market.
Additionally, the CBI plans to issue 2 billion euros in foreign currency sukuk bonds to fund development projects in the petrochemical and mining sectors. Another 1.5 billion euros will be made available in foreign currency loans to boost exports by companies with foreign exchange revenues and rapid-turnaround plans.
Majid Eshqi, head of the Securities and Exchange Organization (SEO), said that banks, major holdings, and government organizations will collaborate to support the stock market, primarily through the Capital Market Development and Stabilization Fund (CMDSF). This coordinated effort aims to reassure shareholders and secure the future of their investments.
Iran’s stock market registered a fall in late July after Hamas top leader Ismail Haniyeh was assassinated in a predawn attack in the Iranian capital.