حدادی

Peyman Haddadi: “Each financing method not only does not increase inflation, but also controls it.”

Tehran, March 02 (SENA) – Peyman Haddadi in an interview with SENA declared: About financing via the Capital Market, whether private or public sectors, it is usually done by selling stocks or issuing debt securities. In the method of issuing debt securities, it is possible to experience an increasing efficiency rate or interest which results in controlling inflation rate.

This Capital Market expert analyzing this subject uttered: In such condition, the liquidity aims bonds with higher efficiency rates and lower risk; based on this, by collecting the wandering liquidity and guiding them towards bonds for financing, clearly decreases the fluctuations of the prices in the markets.

He continued: Also, via the mentioned method, the liquidity would be aimed towards government’s goals (about the current objectives or civil projects) and usually will not be followed by price increase or inflation. Financing of the private sector via the Capital Market is done for the projects and their long-term objectives and will not come about inflation; all in all, there is no financing method in the Capital Market that creates inflation.

This Capital Market stated: Actually, the financing methods that cause inflation should be done by the government and one side should be either the central bank or other banks. In fact, when the government receives loan from the central bank or other banks and after that the central bank should give loans to the banks and this issue causes inflation.

Haddadi claimed: It was believed that growth of bourse results in inflation, but it is now proved that this theory is thoroughly wrong, because with the drop of the market we experienced increase of inflation.

He mentioned the Capital Market as one of the most appropriate markets for financing and remarked: Firstly, its period is longer and there is no need to settle or to pay the original facilities, there are also various products and methods to finance in this market which are flexible in the rate and time of this payment. This financing can also be other than debt and via sharing and the risk and efficiency is transferred and divided between the investor and financer.

Haddadi lastly advised the investors: As the excessive positive flow of the market confronted amendment, the negative flow of it would also end and the market would return to its previous pace and experience growth. Wealth management is really vital in this period. The investors ought to adhere to their portfolio and its maximum loss to pass this condition.

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