Billion-Toman Loans for the Board of Directors; Head of the Stock Exchange Resigns

Following controversial reports of billion-toman loans received by senior managers of the Iranian Stock Exchange, the head of the Securities and Exchange Organization resigned from his position. According to reports from Iranian news agencies, Majid Eshghi officially submitted his resignation to the head of the Supreme Council of the Stock Exchange on Saturday, September 8. His resignation comes three days after the disclosure of low-interest loans granted to several members of the stock exchange board, referred to in the media as 'Eshghi's loans.' In recent days, a letter from the Inspection Organization to the Minister of Economic Affairs and Finance regarding the receipt of interest-free loans by the head and some members of the board of the Securities and Exchange Organization was published, which sparked significant negative reactions. According to this letter, five members of the Supreme Council of the Stock Exchange approved a request for loans for the board members amounting to 10 billion and 500 million tomans. The largest portion of this loan was allocated to Majid Eshghi, the head of the Stock Exchange, amounting to 2 billion and 700 million tomans, with a 10-year repayment period and 4% interest. After the publication of this controversial letter, which also prompted a reaction from Abdolnaser Hemmati, Iran's Minister of Economy, Eshghi referred to the loan to himself and other board members as a 'big lie.' In an interview with Iranian television, he stated that the provision of these facilities was 'based on the resolution of the Supreme Council of the Stock Exchange and in accordance with laws and regulations,' asserting that 'this resolution was not only for board members but for all employees of the Securities and Exchange Organization.' The head of the Iranian Stock Exchange also added that due to 'specific conditions and multiple restrictions' faced by employees and managers of this organization, it was 'necessary' to provide these facilities. Eshghi did not elaborate further on these conditions and restrictions. In response to the news of billion-toman loans received by senior managers of the Iranian Stock Exchange, the Minister of Economy stated on X (formerly Twitter) that he had referred the matter to the inspection of the ministry. He emphasized that 'in the fourteenth government, we have come to eliminate rents and will not allow special privileges for anyone.' According to IRNA news agency, Majid Eshghi had previously verbally announced his resignation to the Minister of Economic Affairs and Finance after the parliament's vote of confidence in Abdolnaser Hemmati. He was elected as the head of the Securities and Exchange Organization on October 13, 2021, by a vote from the members of the Supreme Council of the Stock Exchange. Eshghi was reappointed for another 30 months on April 8, 2023, after receiving a vote of confidence and renewed support from the members of the Supreme Council of the Stock Exchange.