T he government can raise up to 2,000 trillion rials ($4.65 billion) from bonds based on the proposed 2023-24 budget. Lawmakers this week approved the cap for government debt.

Bonds are largely offered by the Central Bank of Iran on behalf of the Economy Ministry to raise funds for the government’s deficit spending. Buyers normally are banks, credit institutions, investment funds and institutional investors.

According to ministry data, 704.1 trillion rials ($1.46 billion) bonds have been sold since last March. In addition to bonds, the government sold treasury bills worth 350 trillion rials ($729m) during the period. Treasury bills are underwritten and given to contractors in lieu of unpaid bills.

Per ministry data, banks and credit institutions accounted for 67% of the bonds purchased since the beginning of fiscal 2022-23 while the rest was taken by institutional investors in the bourse.

financialtribune