Iran completes preparing docs for barter of government debts
Tehran, Iran, Jan.18
Iran's government has finished the registration process for documents for bartering its debts to contractors, banks and creditors.
Deputy Economy Minister for Financial Supervision and Treasury Affairs has issued a statement to the ministry's subsidiary units in all provinces, announcing that the preparation of necessary documents has wrapepd up, Trend reports via ILNA.
The government has decided to implement the barter system to clear its debts to contractors and Iranian banks, by bartering their debts to the Central Bank of Iran (CBI).
A total of 16 banks and credit institutions have been introduced to the offices of Ministry of Economic Affairs and Finance in Iranian provinces as the government creditors that seek the payments of their debts through barter system.
The clearing documents type 1, would clear the government direct debts to individuals, banks or public institutions, while the government barters the debts of these contractors and credit institutions with the Central Bank of Iran.
It is expected the plan would reduce inflation and debts of several local banks in Iran.