|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automakers
In Debt
|
|
Automakers owe spare parts companies over $1 billion.
|
Labor Minister Mohammad Jahromi had promised to remove the liquidity problems of automotive spare parts manufacturers in 2007-8 while the Society of Automotive Spare Parts Manufacturers still complain about the non-payment of automakers’ debts.
According to the Persian daily ’Iran’, the non-payment of debts owed by automakers to spare parts manufacturers drove some companies to the verge of bankruptcy last year. The situation still persists in the current Iranian year (started March 20) and measures by industrial officials to resolve this have not yet proved effective.
Payment of loans worth 1,300 billion rials to Sapco, Sazeh Gostar and Megamotor companies was one remedy pursued by officials, but no loan has been yet paid by the banks. This is while amid all the liquidity problems of spare parts manufacturers, President Mahmoud Ahmadinejad designated Jahromi as the point man for looking into the concerns of spare parts companies.
Asked about his plan of action to tackle the problem, Jahromi said, “Last year, when the financial problem of spare parts manufacturers came to the fore, I met the Managing Director of Iran Khodro Manouchehr Manteqi and former managing director of Saipa, Ahmad Qalehbani. It was decided that the two companies will settle the debts of automakers to spare parts manufacturers.“
Jahromi made the comment at a time when automakers had not yet received the 1,300 billion-rial loan approved by the Money and Credit Council. But, now in addition to the non-payment of the loan, spare parts manufacturers are grappling with the dilemma of non-payment of automakers’ debts. This can crate serious problems for spare parts manufacturers in purchasing raw materials and equipment.
Jahromi said, “In the meeting with the managing directors of the two auto manufacturing firms it was also decided that automakers settle their debts at the earliest. Before this meeting, the deadline was over eight months and after the meeting the deadline was brought forward.“
This is while according to the Society of Automotive Spare Parts Manufacturers the deadline for payment of debts was three months. The society has announced that so far automakers owe spare parts companies over $1 billion.
It seems that the bylaw approved by the Cabinet, which has been practically shelved, was another measure to tackle the problem. Jahromi contended that with the implementation of the bylaw, part of the liquidity problem has been resolved.
Based on the bylaw, industrialists could apply for banking loans without repaying earlier loans. The bylaw was passed when Ebrahim Sheibani was the Central Bank of Iran (CBI) governor. Due to the rise in liquidity, it faced opposition when Tahmasb Mazaheri took over. And now, it has been completely forgotten. At present, CBI has prohibited banks from granting loans to 98 industrial firms, including automakers.The problem that remains unsolved: Can spare parts manufacturers receive their arrears soon?
|
|
|
|
Asia-Pacific Ministers Arrive for Confab
Minister of Housing and Urban Development Mohammad Saeedikia said on Monday housing ministers from Asia-Pacific countries will attend the Second Asia-Pacific Conference on Housing and Urban Development in Tehran.
Speaking on the sidelines of the expert meeting of the conference, he said some 14 ministers have so far arrived in Tehran and 19 to 20 other ministers are expected to come, according to IRNA.
The Second Asia-Pacific Ministerial Conference on Housing and Urban Development is to begin on May 14, he said.
The first conference, which was initiated by India with the assistance of United Nations, aimed to study urbanization, new problems of cities, suburban and illegal settlement, sanitation, water, sewage alongwith challenges facing urban lives, he said.
The expert meeting of the Second Asia-Pacific Conference on Housing and Urban Development opened in Tehran on Monday to draw up the agenda for the ministerial conference.
|
|
|
|
Fars Oilfields on Agenda
The oil minister announced that the development of the two newly discovered oilfields of Sefidzakhor and Dei, in Fars province, is on the ministry’s agenda in the year to March 2009.
In addition to the two new oilfields, Iran’s Central OilFields Company will develop Khest, Sarvestan and Sa’adatabad gas fields, said Gholamhossein Nozari.
On completion of the project, Servestan and Sa’adatabad fields are expected to yield 15,000 barrels of oil per day, MNA quoted Nozari as saying.
According to the minister, the daily output from the Khest oilfield was projected at 25,000 barrels.
Currently, 122 million cubic meters of natural gas are being produced from the various fields in Fars province and this figure is expected to increase considerably once the said projects go on stream.
Construction of a refinery with a production capacity of 120,000 barrels a day is another ongoing project by the Oil Ministry in Fars province, Nozari added.
|
|
|
|
Market Well-Supplied
OPEC Emergency Meet Unnecessary
|
|
OPEC, which produces 40 percent of the worldÕs oil, says there is no shortage of oil in the market.
|
Iran does not expect the Organization of the Petroleum Exporting Countries to hold an emergency meeting before September, a senior Iranian oil official said.
“No, I don’t think so,“ Iran’s OPEC governor, Hossein Kazempour Ardebili, told Reuters when asked if Tehran expected the organization to meet before its next scheduled meeting in September.
He declined to elaborate, but officials from the world’s fourth-largest oil producer have repeatedly said the market was well-supplied with crude and blamed record high prices on the weak dollar and other factors outside OPEC’s control.
An OPEC source had said the producer group might consult on whether it needs to boost oil output before its regular September meeting should crude oil prices keep rising.
Crude oil rose on Monday to $126.14 a barrel, holding close to a record high of $126.27 hit on Friday. Publicly, ministers and officials from the Organization of the Petroleum Exporting Countries insist that supply is adequate despite pressure from the United States and other major consumer countries for more oil to lower the price.
Oil Minister Gholamhossein Nozari said last week that it would be possible to see a price of $200 per barrel for crude if existing conditions in the market continued.
Another senior Iranian energy official, Mohammad Ali Khatibi, said on Saturday that the weak US dollar was the main reason behind record oil prices, not demand or supply factors.
“We must be aware that it is not the price of crude oil that has risen but the dollar value that has weakened,“ said Khatibi, deputy director of international affairs at the National Iranian Oil Company (NIOC).
“Currently the prices of crude oil do not follow supply and demand and they will gain moderation in the event of improvement in (the value of) the dollar,“ he said.
The steady rise in crude oil prices has turned the spotlight on the OPEC, which for months has insisted it has no control over the factors it blames for pushing up the price of oil, including speculation and the weak US dollar.
Iran is the world’s fourth-largest oil producer and OPEC’s second largest exporter.
“I believe there is a direct relationship between the drop in the value of the dollar and hike in the price of oil,“ Khatibi said, adding oil prices rose 8 percent in the first quarter of 2008 after the dollar fell as much in the previous quarter.
On Thursday, Nozari said it would be possible to see a price of $200 per barrel for crude if existing conditions in the market continued.
He said that the reasons behind the surge in oil prices were the weak US dollar and supply concerns from Nigeria.
Abdalla Salem El-Badri, secretary-general of OPEC--which produces 40 percent of the world’s oil--also said on Thursday, “There is clearly no shortage of oil in the market.“
OPEC’s current output is around 32 million barrels per day, compared with global production of 85 million barrels.
|
|
|
|
Rice Imports Up
Iran has increased rice imports to control surging prices in domestic markets, an informed source in the Ministry of Commerce said.
Rice imports from countries such as Pakistan and Thailand have increased to help regulate prices and stabilize the domestic market, a Ministry of Commerce official told Fars News Agecy on condition of anonymity. The remarks come at a time the price of rice, which has already hit all-time highs, continues to rise.
The price of US long-grain rice--the global benchmark--has increased by almost two-thirds since the start of this year. The price for the benchmark Thai variety of rice, a food staple across most of Asia, is also going up by similar amounts.
Prices of wheat and other basic foodstuffs such as maize and soya have also gone up sharply, as demand has steadily increased with population growth.
|
|
|
|
Africa Mining Explorations to Expand
Iran will expand exploration activities in African countries, said director of exploitation affairs at the National Geology and Mineral Exploration Organization.
The initiative was taken in view of Africa’s mining potentials and Iran’s experience and capabilities in exploring mineral reserves, technical know-how and engineering services, Behrouz Borna explained, according to the Persian daily ’Sobh-e Eqtesad’.
National Geology and Mineral Exploration Organization is already operating in a number of Latin American countries such as Venezuela and Ecuador as well as in African states of Chad and Sudan, he pointed out.
Other African countries such as Zimbabwe, Ghana, Kenya and Tanzania have also shown interest in benefiting from Iran’s experience in the mining sector, the official underlined.
|
|
|
|
CNG Confab Scheduled
The first national conference on CNG (compressed natural gas) and an exhibition of allied industries will be held in Tehran on August 2-3.
According to IRNA, the aim of the conference and exhibition is to create further interaction among employers, producers and suppliers of equipment and services related to the CNG.
Acquaintance with the latest technical and technological achievements in the CNG industry, promotion of qualification of domestic producers, promotion of culture and dissemination of information on appropriate use of CNG in the auto industry are among the main objectives of the event.
The conference will also discuss the future of CNG and determine priorities of public and service vehicles for CNG use.
|
|
|
|
|
Shipping IPO Due
Initial Public Offering for 127.5 million shares of Ports and
Shipping Organization is to open in Tehran Stock Exchange on May 17.
Russian Operator to Invest in GSM
A major Russian mobile phone operator may invest around 3 billion euros in Iran to build a GSM network in the country.
|
|
|
|
|
|
|
Shell, Repsol Renegotiating Deals
Spain’s Repsol and Royal Dutch/Shell are negotiating with Iran over their participation in the giant South Pars gas field development project.
Spain’s biggest oil group and its British-Dutch peer are interested in exchanging their stakes in Phase 13 of the offshore gas field with projects in phases 20 or 21, a Repsol source told AFP Monday.
“Repsol and Shell are currently negotiating with the government for a change“ in their participation in the development project of Iran’s huge South Pars gas field, she said.
The unnamed Repsol spokeswoman rejected reports that US pressure played a role in the decision. “If this was the case, we would not be in talks to exchange one Iranian bloc for another,“ she argued, adding that the renegotiation is linked with ’the increase in development costs’.
On Sunday, the Financial Times reported the withdrawal of the two firms from a 10-billion-dollar project on developing Phase 13 of South Pars since they “could not meet the Iranian requirements to develop the block quickly“.
“Shell and Repsol are understood to be considering developing phases 20 and 21 of South Pars instead, but these blocks would take at least a decade to become operational,“ the newspaper said. French oil major Total is still keen on developing Iran’s South Pars oilfield, despite Royal Dutch/Shell’s withdrawal from the project.
“In the short-term it will be difficult to find a win-win situation,“ Total Chief Executive Christophe de Margerie said Monday. “We have told them (Iranians) we are interested in the long-term.“
OMV Under Pressure
World Jewish Congress has demanded shareholders of OMV to twist the Austrian oil and gas major’s arm to suspend deals with Iran.
“It is wrong for any western company to sign business deals of such a magnitude with the ’regime in Tehran’,“ World Jewish Congress (WJC) President Ronald S. Lauder said in a statement Monday.
According to Presstv, he claimed that Austria has a “moral responsibility“ to combat “the Iranian threat“.
Ahead of OMV’s Wednesday general meeting, Lauder called on the Austrian government to pressure group to suspend projects in the oil-rich country.
The Austrian government has a 30-percent stake in OMV, the biggest oil and gas group in Central Europe. “Let’s hope that OMV decides to pursue alternative options instead of giving Iran the international recognition,“ said WJC chief.
OMV has been involved in exploration operations in oilfields in southwest Iran since 2001. Under a cooperation agreement signed with Iran in April 2007, the Austrian major would participate in the development of Iranian gas and oil fields along the Persian Gulf to produce liquefied natural gas.
The OMV chief said in February that his company would not quit its project in Iran’s South Pars gas field. Wolfgang Ruttenstorfer noted that the negotiations were going on between Iranian and Austrian sides on the development of the field.
Austrian politicians have so far supported OMV deals with Iran. A spokesman for Austrian Chancellor Alfred Gusenbauer said that the government ’will not actively intervene’ in the economic activities of a private company.
Iran-Bulgaria Commission Meets
The 16th Iran-Bulgaria Economic Commission’s meeting began in Tehran on Monday with the participation of the transport ministers of the two countries.
During the four-day session, the two sides will study ways of further promoting economic relations, cooperation in the oil and gas, transportation, tourism, information technology (IT), industries, agriculture, trade, and commerce sectors, reported IRNA.
Speaking at the morning session, Iran’s Minister of Roads and Transportation, Mohammad Rahmati, said the country’s foreign policy is based on mutual respect for and development of ties with other countries. He underlined that Bulgaria has a special status in Iran’s foreign policy. Rahmati hoped that the joint economic commission sessions will have a fruitful outcome and boost bilateral economic relations.
Referring to the historical ties between Iran and Bulgaria, he called for further promotion of Tehran-Sofia ties in air, land and rail transportation. The Iranian minister further called for holding the session annually. For his part, the Bulgarian Minister of Transportation Peter Moutafchiev said the session will help the two countries achieve their joint objectives.
He added that bilateral trade has increased significantly since 2000.
Bulgaria’s membership in the European Union has prepared grounds for further expansion of Tehran-Sofia relations, he added. The Bulgarian minister reiterated that his country considers Iran as a major Asian partner.
Iran Economic Growth Robust
The International Monetary Fund (IMF) sees inflation as the most important challenge facing Iran’s economy, which has been robust in recent years.
In a statement released by a mission from the Washington-based organization on Monday, the IMF recommended that the Iranian government strengthen its fiscal stance, increase interest rates and allow greater exchange rate flexibility to tame runaway inflation in the oil-rich country.
“Iran’s economic growth has been robust and its external position has strengthened in recent years on the back of rising oil prices. Real GDP growth averaged 6.2 percent a year during 2005-7 and gross official reserves reached $82 billion by end-2007/08. Inflation, however, has risen markedly, owing to strong growth in domestic demand,“ the mission team led by Vitali Kramarenko said after visiting Iran during April 28-May 11.
The international organization suggested to the government to prioritize further strengthening of the public finances and improving the overall efficiency of the economy, including by phasing out the large subsidies on energy products and replacing them with targeted social assistance, over the medium term.
It said the deepening of financial intermediation and improving the business climate would enhance faster economic growth and employment generation.
On structural reforms, the fund said implicit energy subsidies have been reduced, the preparatory work for implementing the value added tax (VAT) is close to completion, and tax collection agencies have been upgraded with new information technology.
Tajik Ties to Expand
Iranian ambassador to Tajikistan has announced that economic, cultural, industrial and scientific cooperation between Iran and Tajikistan will expand further.
Ali Asghar Sherdoust also told IRNA that the seventh meeting of Iran-Tajikistan Economic and Cultural Commission was held in Tehran last week in which an important document incorporating all earlier agreements was signed.
He underlined that based on the agreement, Iran will participate in projects such as construction of dams, roads, power transmission lines, small and large power plants and cement factories.
He added that Iran will also be involved in mining, weaving, setting up shoe factory and manufacturing construction materials, paints, detergents and pharmacology plants. Tajik officials, he said, will inform Iranian investors of their priorities.
On investment security for private investors of both countries, he said that the joint commission discussed the issue and the Tajik side agreed to remove obstacles.
Also based on the agreement, Iran will export 2,000 Samand sedans to Tajikistan and the Iranian car manufacturing company Iran Khodro will consider setting up a production line of the car in the Central Asian state.
He said that the establishment of joint factories and an Iranian trade center in Dushanbe, construction of residential complex by Iranian companies, and tax exemption for machineries exported from Iran are among the other provisions of the agreement.
Heavy Crude Prices Down
Iran has cut the June official selling price (OSP) of its heavy crudes to all regions, with Iran Heavy and Forouzan cut the most in the Mediterranean, where their differentials were slashed by $2.10 a barrel, a source with the National Iranian Oil Co. (NIOC) told Fars News Agency.
The steep fall in differentials for heavy crudes came as fuel oil has been struggling in Europe and in Asia.
The fuel oil crack has fallen to record-lows in Asia this month, and was last assessed at around a $26 a barrel discount to Dubai swaps on Friday, as demand has frozen amid surging prices.
The only rise was for June. Iran’s Light crude to Asia, which NIOC increased by 40 cents a barrel to a premium of $2.25 a barrel to the average of Oman and Dubai prices, hit the highest level since November, according to Reuters data.
The rise follows a similar 40-cent increase in Saudi Arabia’s price for June Arab Light to Asia to a $1.85 premium.
Shipping Deal With Azerbaijan
Iran and Azerbaijan signed a protocol on cooperation in shipping and marine transportation sectors, announced deputy head of Ports and Shipping Organization for ports and special zones affairs.
According to MNA, Alireza Satei said that officials from the two countries, who met to discuss shipping cooperation, underlined the need to expand transportation ties, particularly in the field of shipping.
The MoU called for controlling and inspecting ships and preventing Caspian Sea pollution.
Azeri delegation inspected the facilities of Imam Khomeini Port and discussed joint investment with representatives of Tidewater and Kaveh companies.
|
|
|
|
|
|
|
