Head of Trend's Iran News Service Dalga Khatinoglu
Iranian government considers issuing 12.5 billion euro bonds for current solar year, started on 20 March.
According to Fifth National Development Plan, issuing about $30 billion bonds (A USD in Iran officially equals 12,226 rials)is scheduled.
However, Ali Asghar Mir Mohammad Sadeghi, general manager for credit and investment affairs of Central Bank (CBI) said on Feb.4 that from beginning of the (solar) year, started on March 21, only $250 mln bonds have been sold, while some governmental entities, including Oil Ministry issued about $1.3 bln during mentioned time.
The failure happened mostly because the interest of bonds was 17 percent, less than official inflation rate.
Then CBI increased the bonds' interest to above 20 percent on Feb.4.
From that time to the end of last solar year, the Oil Ministry issued $1.35 bln bonds (1.150 bln sold), Energy Ministry issued $1 bln and the Ministry of road and Urban issued about $400 mln and the bonds were sold totally.
Review of the bonds sold during Feb-March months indicates a large difference in amount of scheduled plan and the final achievement.
Government's debts
Issuing bonds has other aspects as well.
According to Fars News Agency's early report, Iranian government and governmental entities' debts to banks doubled during 4 years and reached more than $45.8 bln until the beginning of last solar year. This figure has been increasing.
Regarding the existence of $300 bln liquidity among Iranian community, issuing bonds seems be a way to prevent the amount of liquidity which is the major reason of high inflation rate in the country, but regarding increasingly Ahmadinejad government's debts to banks, this is an alarm for the sanctioned Iran's economy.