Business And Markets

Gov’t, Private Sector Debt Bartering Rules Announced

Gov’t, Private Sector Debt Bartering Rules AnnouncedGov’t, Private Sector Debt Bartering Rules Announced

In a directive to administrative bodies on Wednesday, the Plan and Budget Organization outlined procedures for implementing a multilateral bartering scheme involving the government, private companies and banks.  
The scheme, mentioned in the 2019-20 national budget, allows the government to swap its debts to cooperatives and private firms with debts of the private sector to administrative bodies, banks and non-government credit institutions. 
The initiative is in line with Note 5 of the budget law that permits the government to issue 20 trillion rials ($171 million) in treasury bills to settle its debt to cooperatives and private companies. 
As per the directive, published on the official PBO website, the government, banks plus legal and natural entities can settle their debts via special treasury bills through one of the following ways: 


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