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Central Bank of Iran talks ways to eliminate budget deficit

Finance Materials 12 August 2020 12:41 (UTC +04:00)
Central Bank of Iran talks ways to eliminate budget deficit

BAKU, Azerbaijan, August 12

By Elnur Baghishov – Trend:

There are only four ways to ensure sound finance to eliminate the budget deficit in Iran, Director General of the Central Bank of Iran (CBI) Abdolnasser Hemmati wrote on his instagram page, Trend reports.

The director general stressed that as a result of US sanctions against Iran, Iran's oil exports have declined, and the decline has led to a budget deficit.

He added that these four ways imply cost reduction, increase of tax revenues, sales of state shares and property, and sales of oil or related bonds.

The CBI noted a number of problems, including the spread of coronavirus that make it difficult for the Iranian government and parliament to increase tax revenues and reduce spending.

"The sale of state property and shares is carried out despite certain obstacles," he wrote.

Hemmati noted that so far, 520 trillion rials (about $12.3 billion) worth of bonds have been sold in the country.

"Delivery on the sale of products such as oil or related bonds will be made over two years. This measure can generate more income for the holders of these bonds,” he added.

The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies and individuals.

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