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A regional conference on capital market's role in financing economic projects was held on 24 November 2022 in Kermanshah, Iran.
Mr. Mahmoud Goudarzi, the CEO of Tehran Stock Exchange (TSE) indicated that banking system has been the only major player for financing the country's projects and economic plans traditionally, and said: “Currently, capital market provides 25% of the financing duty of various economic sectors in the country.”
“The capital market played a five percent role in financing various economic sectors of the country in 2011; 95 percent of which was on the shoulders of banks. In the past in all countries of the world, traditionally, banks played a key role in financing projects, but after the crises of 1997, 2007 and 2008 and the spread of the Covid19, the global financial variables started to step towards capital markets and remove this heavy burden from the banks shoulders.”, Goudarzi stated at the first regional conference on financing in the country's western provinces.
Emphasized on the necessity of financial literacy, TSE's CEO added: “enhancing financial literacy in companies, especially knowledge-based ones, is vital and makes them familiar with different financial instruments to be able to finance through capital market in accordance with their needs.
“In the past few decades, the world economy was based on giant international physical enterprises to generate more wealth and value added, and banks and investors supported the enterprises’ physical assets. But, the production of wealth and value added is today based on knowledge and supporting knowledge-based companies, and there certainly is no other way for our capital market towards future. The capital market should support knowledge-based enterprises enthusiastically in order to generate wealth as well”, he elucidated.
"The capital market plays an effective role in financing small businesses, and various investing funds have been developed to support these enterprises. I hope the youth will use the opportunity in the provinces.” Goudarzi mentioned.
The chairman of Securities & Exchange Organization, the vice president of Iran Chamber of Commerce, Industries, Mines and Agriculture and CEO of Tehran Stock Exchange, as well as a group of producers and investors attended the first regional financing conference of the western part of the country.
