Iran government not to borrow money from central bank
Tehran, Iran, Jan. 5
By Milad Fashtami - Trend:
Iran's government will not borrow money from the central bank, Deputy Head of the Central Bank of Iran Akbar Komeyjani said.
Komeyjani said that the government has promised not to take any money from the central bank, Iran's SHANA News Agency reported Jan. 5.
The official added that the country's budget deficit is not going to be compensated by borrowing money.
Iran is expected to face severe budget deficit in the current Iranian calendar year (to end March 20, 2015).
The country decided to sell its crude oil to Asia in November at the biggest discount in almost six years. The decision was made after Saudi Arabia cut prices for all grades and to all regions for November. Qatar and Iraq decreased their prices as well.
According to Iran's budget law, the country is supposed to export 1.4 million barrels of oil (including gas condensate) per day.
Reports suggest that if the current tendency continues, the total budget deficit may soar above $2.5 billion.
The Iranian President Hassan Rouhani also predicted that Iran's total oil revenues will be 30 percent less than expected.
Experts believe that due to the continuing fall of oil prices in global markets, a budget deficit in the next calendar year is also inevitable.
Edited by CN