The government plans to issue 400 trillion rials ($1.4 billion) in bonds in the four months before the end of the fiscal year in March.
According to a press release of the Economy Ministry, selling 100 trillion rials ($357 million) is scheduled on a monthly basis.
The ministry said selling additional bonds beyond the amount set in the 2021-22 budget is based on “issued permits”. It was not clear who had given the permits.
News outlets earlier said the government got approval from the Supreme Council of Economic Coordination, a top body comprising heads of three branches of power in charge of making key economic decision.
Government income from bonds reached 507.7 trillion rials ($1.8b) in eight months since the beginning of current fiscal year. Islamic bonds were sold at the weekly auctions in the past year and a half.
In the last auction held this week, the government sold 4.1 trillion rials ($14m) in new debt. A bank was the main buyer putting in bids worth 3.2 trillion rials ($11m). The balance was sold to retail and institutional buyers in the stock market, the Central Bank of Iran said.
On behalf of the Economy Ministry, the CBI is in charge of selling the bonds.
The Raisi administration, similar to its predecessor, is striving to raise funds for budgetary needs as it struggles with bigger deficits due to the 2018 US sanctions on the oil export -- the lifeline of the economy.
The CBI said bonds worth 66.5 trillion rials ($237m) will be put up for sale on Nov.30.
Economists say funding budget deficits via the bond market is a relatively safer route than the government borrowing from the central bank, which runs the risk of expanding the monetary base and increasing inflation.
