Resumption of Borjam increases investment
Chairman of the Iran-Switzerland Joint Chamber of Commerce: All companies face high liquidity and do not know what to do with it, they are constantly in contact with the Central Bank to be able to take their profits out of the country.
According to the International Iranian Stone Exhibition, Sharif Nezam Mafi, regarding the Swiss ambassador's desire to invest Swiss companies in Iran, said: "Increasing investments will be done by improving the economic environment and resuming the Borjam agreement, but in the end we must have a good platform." Create for such investments. The companies mentioned by the Swiss ambassador are strong companies that are already present in Iran and are certainly interested in expanding their business.
He added: Mr. Ambassador pointed out a very sensitive point. Iran's regulations are very complex and make it difficult for companies to operate, so Mr. Safir refers to customs and ultimately to our laws. In fact, it means that companies are ready to invest as long as you slightly adjust your rules to the private sector. The private sector must be able to operate and compete in order for the economy to thrive.
"Traditionally, Swiss companies are very strong in the medical and pharmaceutical, grain and heavy industries," he said. Swiss service companies, like insurance companies, are present in Iran, but their activity is relatively less.
The head of the Iran-Switzerland Joint Chamber of Commerce, referring to the problems of investing in Iran for foreign companies, said: "The big problem of foreign companies in Iran is extracting capital gains." If the Swiss company today wants to take its profits out of the legal arena, it can almost be said that it can not do so. One of the reasons is the non-allocation of currency, and if it is allocated, it remains to be seen at what rate. These companies have recorded profits at the official rate of the central bank, but when the central bank withdraws profits, it says it should be either a half rate or a free rate It is great for these companies. When we talk about the expansion of investment in the country, we must also consider the outflow of profits of the parent company from the country, but today this is almost impossible.
He added: "All companies are faced with high liquidity, they know what they have to do with it, they are constantly in contact with the central bank so that they can take their profits out of the country." Some of them have been able to do the same. These profits cannot be taken out of the country by money changers and there is a need for a reputable bank, the sanctions of our banks make this very difficult. Therefore, not only is it difficult to allocate currency, but also communication with the destination bank is difficult.
Mafi added: "The first reason why these companies have stayed in the country, they have invested and built a factory and they can not leave it." The second point is that companies hope that the atmosphere will change in such a way that they can both expand their operations and make profits from abroad. Profit withdrawal rules should be very easy, otherwise companies will not invest.
According to the report, the Swiss ambassador met with Mohammad Baqer Nobakht and expressed satisfaction with the talks between the two countries at the highest level, and called for more participation and investment of the country's manufacturing companies in Iran. According to the Swiss ambassador, despite US sanctions; Fuller, Syngenta, Roche, Novartis companies, in addition to Nestlé, are willing to invest in Iran.
* ILNA
