By: Jim McClintock
Iran’s “Supreme Leader” Ali Khamenei said last week that additional corporate entities under its control would go public on the Tehran Stock Exchange (TSE), enabling them to access capital more effectively.
The move shows how primary regime-controlled businesses remain free to act in the face of the United States’ maximum pressure campaign.
The businesses reportedly have a $200 billion portfolio of assets that the United States has yet to begin squeezing in any real way.
The listing of additional companies within Khamenei’s network will increase the share of TSE’s market capitalization under his control. This in turn will deepen his influence over the TSE, one of the critical barometers of Iran’s economy, reported the Foundation for Defense of Democracies.
“The TSE has become a primary resting place for wandering capital in Iran, which the Supreme Leader’s companies will now be in a better position to attract. The combination of a deep recession and tight currency controls has left many traditionally active markets in the doldrums, including real estate, precious metals, and foreign currency. The banking system has also become a less desirable destination to park money and generate income, because of its structural troubles and a sharp rise in inflation. All this makes the TSE more attractive,” FDD said.
Mohammad-Javad Iravani who is the Deputy of Supervision and Auditing of Leader’s Office was referring to what is believed to be the largest financial and business network in Iran, worth more than a $100 billion by some estimates and shielded from public scrutiny and independent auditing, according to Radio Farda.
“One reason for listing the secretive entities on the stock market is to blur their ownership and somewhat shield them from American or international sanctions. Another reason might be the need to raise cash as state coffers and Khamenei’s funds dwindle under the pressure of U.S. sanctions,” the Iranian news organization said. “In his remarks Iravani implied that the reason these companies are not active in the Tehran Stock Exchange is that they do not meet certain requirements, in other words, there are transparency and tax payment issues which according to him were discussed with the economy minister and need to be resolved before their listing on the exchange.”
Yesterday, President Trump said that he gave a thumbs down to the possibility of talks with Tehran after country’s highest-level diplomat told the press he was still willing to negotiate over its nuclear program if Washington lifts sanctions. Iranian Foreign Minister Mohammed Javad Zarif told Germany’s Der Spiegel magazine “that he would “never rule out the possibility that people will change their approach and recognize the realities,” in an interview published Saturday,” The Times of Israel reported.
