Privatization in Iran - Progress

Progress

See also: Iranian Economic Reform Plan

Close to 370 trillion rials worth of shares of firms covered by Article 44 of the Constitution have been sold to the private sector in the past three years. The value of government assets are between 1,000 to 1,100 trillion rials ($110 billion), one third of which have been ceded to the private sector (December 2008).

In 2009 it was reported that 30 percent of the revenues obtained from ceding the ownership of state entities within the framework of Article 44 of the Constitution are allocated to the nationwide cooperatives.

As of 2009, Iran has privatized $63 billion worth of government equity in state-owned firms since 2005 (out of $120 billion). Subsequently, the disinvestment has brought the government's ownership in the GDP from 80% down to 40%. Privatization through the bourse has tended to involve the sale of state-owned enterprises to other state actors such as pension funds.

The Iranian Government announced in 2010 that it aims to raise some $12.5 billion by privatizing more than 500 state-owned firms. The money raised through privatization of the firms will be spent on paying the state's debts.

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