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| Syria-Lebanon-Iran |
| Tough fiscal year predicted for Iran |
| 2009-01-08 |
| The contention in Iranian political circles that the country is immune to the global financial meltdown has been brought under question. The common perception in Iranian political circles is that the country has largely remained unaffected by the recent economic crisis gripping world countries. The chairman of Iran's Expediency Council, Ayatollah Ali-Akbar Hashemi-Rafsanjani, questioned the validity of Iranian immunity on the issue on Thursday, saying that the country will face extreme difficulties due to its reliance on oil exports. "The government has real problems in determining its budget for next year and will have difficulty preparing a budget able to receive a Majlis vote," Hashemi-Rafsanjani said. The senior Iranian official called on the government to take serious measures to ensure that the global economic crisis does not severely influence the country. His remarks are considered tacit criticism as they come days after President Mahmoud Ahmadinejad said that Tehran has enough foreign exchange reserves to last for "three years" and can thus manage its affairs even if oil prices hit zero. The Iranian government is extremely reliant on oil revenues and is vulnerable to price fluctuations. As a result of the sharp downward spiral in oil prices, some economists have predicted that Tehran will face a considerable budget deficit within months. In September, the International Monetary Fund (IMF) predicted that Iran would face a fiscal deficit if crude oil prices fall below $90 a barrel. The Central Bank of Iran (CBI) has also warned that the economy will face major problems should oil prices fall below $60 a barrel. President Ahmadinejad has refuted the claims, saying that falling oil prices will have no serious impact on the country's economy even if they reach "5 dollars" a barrel. "Some arrogant countries say Iran will be hit by falling oil prices, but we tell them that the financial crisis in the West did not affect us, so the fluctuations in the oil market will not gravely affect us either," he told reporters on the sidelines of an international press exhibition in Tehran last month. |
| Posted by:Fred |
| #7 Abu wins the thread. :-D |
| Posted by: Barbara Skolaut 2009-01-08 22:13 |
| #6 actually, the appropriately sized violin is pictured. i am just not sure which pixel it is drowned out by. |
| Posted by: Abu do you love 2009-01-08 21:09 |
| #5 "pic of nano-violin, please...." They're still looking for it, Chaitch. It's really small. |
| Posted by: Barbara Skolaut 2009-01-08 14:30 |
| #4 Iran hasn't finished paying for the rebuilding of the Hezballoh infrastructure yet (Rockets were paid for but not many offices or residences for Hezb big shots). I'm also willing to bet a lot of the Mullahs had much of their embezzled wealth in hedge funds, fannie mae, WAMU, Etc. Bad times. |
| Posted by: mhw 2009-01-08 14:00 |
| #3 pic of nano-violin, please.... |
| Posted by: Chaitch the Galactic Hero8968 2009-01-08 12:46 |
| #2 There a bill from Gaza due shortly. |
| Posted by: g(r)omgoru 2009-01-08 12:17 |
| #1 man... i feel so terribly heartbroken over this troubling news... NOT |
| Posted by: Abu do you love 2009-01-08 00:35 |