News ID : 4047
Publish Date : 17 June 2020 - 09:02
The use of the capital market as a means of financing has been emphasized by the Minister of Economy and Finance as one of the ways to provide liquidity to automakers. In order to remove these obstacles, the relevant organizations have not done so.
Khodrocar - The issuance of a license to increase the price of goods by 20 to 25 percent by the government, as well as the crossing of the dollar at 18,000 tomans, indicates that the rial is on a downward slope, while experience has shown that annual inflation leads to stock market growth and a source to compensate for budget deficits. It helps to stabilize the capital market and prevent it from falling, and at the same time it will wake up the parallel markets.

But in the meantime, economic experts believe that with the increase in inflation and also the increase in the dollar rate to the range of 18 thousand tomans, from now on there will be no car under 100 million tomans, but at the same time this inflation will welcome people from the stock market and government offers. It will probably break the record volume and value of transactions on a regular basis.

Meanwhile, using the capital market for automakers instead of bank resources with the aim of financing can be a more suitable option for automakers, a point that Farhad Dejpsand, Minister of Economy and Finance, yesterday emphasized on its implementation and announced that for Financing is limited by the capacity of the banking system, and its function must change. Therefore, the financing of fixed capital should not be done from the money market, but from the capital market, and at the same time the financing of large-scale enterprises such as automakers should be done from the capital market.

According to him, all large enterprises should come to the capital market, because in the capital market there is not only one tool for financing, but also different tools can be used. At the same time, Dejpsand stressed that the capital market is not going to replace the money market, but that the financial institution should be the supplier of financial instruments for large enterprises, so it should go to the capital market with the help of the private sector.

While automakers have been looking for low-cost ways to finance themselves in recent years, the use of bank facilities as well as pre-sales has been the only way to raise their liquidity, which has cost them dearly.

Accordingly, experts say that providing liquidity through the capital market is the best solution and specifying the issuance of shares in the primary market, the issuance of Islamic financial securities and increasing capital through shareholders' cash flow can be good ways to provide liquidity to automakers from the capital market.

Meanwhile, other experts point out that there are obstacles to using the capital market to finance car companies. If these barriers are not removed, they will not be able to solve their liquidity problem by prolonging the issuance of securities, high costs and fees, the impact of financing rates on the money market, and restrictions on product pricing.

The wrong pricing methods of the automotive industry in recent years have imposed a lot of costs on the industry to provide technology, and it seems that over time, a logical formula has not yet been defined for it. In this market, it is stated that as long as the situation continues in the same way, financing from the capital market will not be the first priority of car manufacturers.

* Comment:
دی اس