One year after the government expressed its intention to issue sukuk or Islamic bonds as a tool to clear its debts, no serious action has yet been taken in this regard, Financial Tribune sister website Eghtesad News wrote in a disapproving article on Saturday. Government’s debts to banks and contractors of development projects have weighed heavily on the economy and the banking system, the report said. Last year, the minister of roads and urban development said sukuk is the only option the government has to clear its 20 quadrillion rial debt to the contractors. Despite President Hassan Rouhani’s promise to help resolve the issue, the struggling banks still await the government to repay its massive debt. Ejare, Morabehe and participatory bonds are among the financial Islamic bonds that are issued occasionally by state-run companies to raise funds. Under the law, the bonds can only be issued for three asset groups: land, buildings and machinery.
