Iran comes up with new solution to clear government debts

Business Materials 16 February 2016 13:07 (UTC +04:00)

Tehran, Iran, February 16

By Mehdi Sepahvand - Trend:

Iranian government has passed a law that will contribute to the settlement of government debts, Iranian government's spokesperson said.

According to the bill those who owe the government and in the meantime the government owes them, will receive bonds that will cross their debts, spokesman Mohammad-Baqer Nobakht said during a press conference, Trend's correspondent reported from the event.

Nobakht added that 100,000 billion rials (about $3.313 billion) of such bonds will be issued by the end of the current Iranian year (March 21) and during the next Iranian year all such debts will be settled.

Saying that several real entities with debts to the government have faced problems as they had been barred from leaving the country, Nobakht added that it was the at the debtors own request to settle the issue in such a way.

Explaining that the bonds can be sold on markets, he further added that the debts are mostly related to taxes and the government plans to settle all debts by bonds within two years.

Earlier in January it was announced that the Iranian government's debts amounted to 3.8 quadrillion rials ($126 billion, as 30,165 rials make one USD).