Bank Melli to Sell Islamic Gov’t Bonds
Economy, Business And Markets

Bank Melli to Sell Islamic Gov’t Bonds

Bank Melli is set to act as a mediator between the government and contractors that have undertaken government projects.
To pay part of government debt to the contractors, the largest Iranian state-run bank will sell 10 quadrillion rials ($344 million at official exchange rate) in Islamic government bonds, Bank Melli’s CEO Abdolnaser Hemmati announced on Monday. The treasury is expected to issue the bonds in the near future.
Hemmati said the nominal price of each bond is set to be one million rials ($34) with a settlement date of March 13, 2016.
“The bonds are tradable at the Iran Fara Bourse or over-the-counter market that controls up to 17% of the Iranian bond market,” Akhbar Bank news website quoted him as saying.
A government bond is a type of security issued by the state as a debt instrument.
 The bonds are more liquid compared to other instruments in the financial market and are issued to help the government settle its debt to banks, contractors, insurance companies and social security organization.
Regarded as risk free bonds, they have a maturity date less than a year and are totally exempt from taxation.
“Bank Melli’s resources in the national currency have exceeded 100 trillion rials ($3 billion), indicating that public confidence in the bank has been growing,” Hemmati said earlier this week in a meeting with bank’s 600 executives.
The lender managed last fiscal year to lower the ratio of non-performing loans or NPLs to below 10%, a move that enabled it to give 350 trillion rials ($12 billion) in loan, registering a 60% increase compared to one year before.
Nearly 65% of the loans granted by the bank were raised through repayment of its bad loans, the official said.

Short URL : http://goo.gl/v323wr

You can also read ...

Pretoria Hosts South Africa-Iran Business Forum (Photo: AfricaNewsAgency)
The South Africa-Iran Business Forum was held in Pretoria,...
The health deal was signed in Iran’s Embassy in London on Oct. 23.
Iran’s Ministry of Health signed an investment and cooperation...
2 Iranian Rating Firms Licensed
Securities and Exchange Organization of Iran, the country's...
The fiscal 2014-15 was the worst year for the construction sector in recent memory, with growth rate reaching its nadir at -17%.
The research arm of the Iranian Parliament has forecast a...
Renault Launches Used-Car Sales Scheme in Iran
Negin Khodro, the local official importer of Renault cars, has...
Mellat Insurance’s office in Tehran
Mellat Insurance, affiliated with Bank Mellat, announced that...
Bushehr Port accounts for more than half of Iran’s maritime trade.
More than 19.6 million tons of non-oil products worth close to...
Swarovski Partners With Iranian Firm
Iranian leather and accessory manufacturing company Dorsa...