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Iran budget bill permits issuing €9.5b in bonds

Business Materials 25 January 2010 12:08 (UTC +04:00)

The Iranian administration has included issuing €9.5 billion worth of bonds in the next year's national budget bill in a bid to finance infrastructure development projects.

The bill allows the government to issue bonds as much as €1.5 billion to fund infrastructure projects in water and agriculture sectors, the Mehr News Agency reported.

The Petroleum Ministry has been authorized to issue up to €5 billion in bonds to secure its required capital to invest in underway projects.

Industrial and mining companies have also been permitted to issue bonds to the ceiling of €2 billion to invest in economically and environmentally justified plans.

The bill also authorizes municipalities of big cities to issue up to 20 trillion rials (some €1.4 billion) to spend in the implementation of development projects and renovation of historic urban fabric.

The bill should be approved by the parliament. Issuance of the bonds is contingent upon permission of the Central Bank.

President Mahmoud Ahmadinejad submitted the next year''s national budget (March 2010-March 2011) to the parliament on Sunday.

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