Iran’s parliament approves issuing $1.8B worth of oil bonds next year

Business Materials 16 February 2015 16:37 (UTC +04:00)

Baku, Azerbaijan, Feb. 16

By Umid Niayesh - Trend:

Iranian parliament, which is discussing budget details for next fiscal year (to start on March 21, 2015) permitted the oil ministry to issue 50 trillion rials (about $1.8 billion based on official rate of 27,600 rials per each USD) worth of bonds.

The parliament approved the budget's article which has envisaged issuing $1.8 billion worth of bonds to be used to finance oil and gas projects, Iran's Fars news agency reported Feb. 16.

The bonds will be issued in both national and foreign currencies.

The joint oil and gas fields will have priority for investment, the article reads.

The parliament earlier approved the general outlines of the national budget bill for the next Iranian fiscal year.

The national budget amounts about 8.24 quadrillion rials (about $294 billion), a 4 percent rise year on year. Next year's national budget bill is based on an oil price of $72 per barrel and a projected average exchange rate of 28,500 rials to the US dollar for the fiscal year.

The funding for running the government was set at 2.67 quadrillion rials (about $93.7 billion).

The budget bill envisages economic growth at 5.2 percent and an inflation rate of 14 percent for the next Iranian fiscal year.

About $24 billion in oil revenues is forecasted for next fiscal year.

Edited by CN

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