Iran implements barter system to cover contractor's debts
Tehran, Iran, Dec.7
Iran's government has allocated a part of its annual budget plan to pay a portion of Ministry of Roads and Urban Development's debt to its contractors.
Iranian Minister of Roads & Urban Development Mohammad Eslami noted the organization has planned to pay its debts to the contractors through barter system, Trend reported citing IRNA.
"Considering legal capacities, a part of this debt would be paid to the contractors in private sector through barter," said Eslami.
"To operate the unfinished projects, it is planned that part of the debt will be paid to contractors and other part would be used for improvement of the projects," he added.
In August, Iranian Deputy minister of Roads and Urban Development Amir Amini said the volume of ministry's debt to contractors has reached $4.5 billion.
"To implement this method, the Planning and Budget Organization would announce the volume of contractors debts to treasury and Central Bank of Iran to facilitate the payment," he said.
According to the official, the ministry would annually pay 40 to 60 percent of its debts to contractors.