Iran Economy in Brief – No. 82

Population of suburban area of Tehran: more than 2 million

More than 8% of the country’s urban decay is located in Tehran. The Head of the Urban Development and Revitalization Organization of Iran, Mohammad Abdolmaleki said: “Of the country’s 77000 hectares of decayed urban structures, 6400 hectares are located in the province of Tehran; nearly 4000 hectares of which are located in the city of Tehran”.

Studies by this organization indicate that 2.2 million people in the province of Tehran are living in decayed urban settings; 1.3 million of which are living in the city of Tehran. This study was conducted on ten cities in the province of Tehran: Tehran, Islamshahr, Shahr-e-Ghods, Golestan, Varamin, Shahryar, Packdasht, Malard, Nasim Shahr and Gharchak.

The study shows that 15% of the countries unofficial housing is located in Tehran. Abdolmaleki continued: “Mass immigration from other parts of the country to Tehran in the 70s and 80s led the majority of the immigrants to settle in decayed settlements and houses which currently have the lowest quality of life imaginable.”

Related topic: One-third of urbans accommodated in unofficial places

Iran and Russia create banking channels

The Trade Promotion organization of Iran announced the starting of banking relations between Iran and Russia. The President of the Office of Europe and Americas at the TPO, Behrouz Olfat said: “Keshavarzi Bank can provide services such as opening of accounts (Ruble, Euro), opening an importation or exportation credit line, sending or receiving of bank remittances and issuing warranties via Russian Mir Business Bank and Trans Capital Bank”.

Based on the statement from the Trade Promotion Organization, banking relations and currency transactions with Russian Sber, Rosevro Gazprom, Zenit and Promsvyaz are possible after the required inquiries.

Donate via your cellphone

The Imam Khomeini Relief Foundation, with the help of the first network operator, Mobile Telecommunication Company of Iran (MCI), is collecting donations via SMS. This system will significantly reduce the cost for personnel and maintaining donation collection boxes for the Relief Foundation. “From the start of this year, 10% of donations have become electronic and we intend to increase this by 10% each year”, said Parviz Fattah, Head of the Imam Khomeini Relief Fund.

The Imam Khomeini Relief Foundation was established in March 1979, on orders of Ayatollah Khomeini in order to support and assist the impoverished. Based on figures from this organization, last year this foundation received 14600 billion IRR ($438m) in donations.

Read more about: MCI and Imam Khomeini Relief Foundation collaboration

Banking interest rate: a mystery to end?

Starting this week, the Central Banks instructions for reducing bank interest rates are being carried out which aim to reduce long-term saving account interest to 15% and short-term interest rates to 10%. Although this directive was issued more than a year ago, almost all banks offered higher interest rates in order to attract investors. Due to the reduction of the inflation rate to 8%, the Government and the Central Bank are seeking to guide the capital saved in banks into the market. Based on the new instructions, the interest rate for loans offered by banks is set at 18 percent.

Read more about: New banking instructions in Iran