Iranian Gov’t Bodies, Banks Allowed to Issue Bonds

The government has outlined new tasks for state-owned companies, banks and for-profit institutions as part of a directive for the next fiscal (March 2019-20) budget. As per the directive issued by President Hassan Rouhani, government organizations, banks and for-profit institutions are obliged to meet their financial needs next year by issuing Islamic bonds (in rial or foreign currency) in the domestic and foreign financial markets and through foreign loans, IBENA reported. Accordingly, these entities must take measures for put in place and implement performance-based budgeting system. In addition, budget allocation will be devised in a goal-oriented and result-based manner.