ID :
209402
Mon, 09/26/2011 - 11:22
Auther :
Shortlink :
https://oananews.org//node/209402
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World Bank Praises Iran's Subsidy Reform Plan
TEHRAN (FNA)- The World Bank (WB) praised President Mahmoud Ahmadinejad's subsidy-cuts plan and said Iran was able to decrease poverty and income inequality notably following the launch of the plan in December 2010.
The banks said the Iranian government applied a direct cash transfer program while raising the prices of petroleum products, water, electricity, bread and several other products.
It also said that in the years 2007-2008 overall subsidies represented 27 percent of gross domestic product (GDP), but in 2009-2010 economic growth rose by 3.5 percent whereas prudent macroeconomic policies lowered inflation to around 10 percent and ensured a fiscal surplus.
It is worth noting that maintaining tight monetary and fiscal policies is forecasted to bring inflation back to 12 percent in 2012-2013.
Meantime, the WB also announced that it has approved no loans to Iran since 2005, though it has not been prohibited from financing humanitarian and development projects.
In a transcript released on its website, the World Bank announced that although it has not prohibited investment in Iran under UN sanctions, no new loans to Iran have been approved since 2005.
Meanwhile, Iranian Finance and Economy Minister Shamseddin Hosseini criticized the World Bank's behavior in regard to Iran on Friday at World Bank- IMF Annual Meetings in Washington.
Hosseini said that the World Bank management, contrary to its Articles of Agreements, avoids approving the Country Assistance Strategy for Iran, and refrains from offering technical assistance to Iran.
The banks said the Iranian government applied a direct cash transfer program while raising the prices of petroleum products, water, electricity, bread and several other products.
It also said that in the years 2007-2008 overall subsidies represented 27 percent of gross domestic product (GDP), but in 2009-2010 economic growth rose by 3.5 percent whereas prudent macroeconomic policies lowered inflation to around 10 percent and ensured a fiscal surplus.
It is worth noting that maintaining tight monetary and fiscal policies is forecasted to bring inflation back to 12 percent in 2012-2013.
Meantime, the WB also announced that it has approved no loans to Iran since 2005, though it has not been prohibited from financing humanitarian and development projects.
In a transcript released on its website, the World Bank announced that although it has not prohibited investment in Iran under UN sanctions, no new loans to Iran have been approved since 2005.
Meanwhile, Iranian Finance and Economy Minister Shamseddin Hosseini criticized the World Bank's behavior in regard to Iran on Friday at World Bank- IMF Annual Meetings in Washington.
Hosseini said that the World Bank management, contrary to its Articles of Agreements, avoids approving the Country Assistance Strategy for Iran, and refrains from offering technical assistance to Iran.
