Gov’t Treasury Bills to Reimburse Contractors
Economy, Business And Markets

Gov’t Treasury Bills to Reimburse Contractors

The Ministry of Roads and Urban Development will settle 10 trillion rials ($330 million at the official exchange rate) of contractors' overdue payments through treasury bills, the minister said Tuesday.
Abbas Akhoundi said contractors of road and rail transport projects would eventually receive 30 trillion rials ($992 million) of Islamic treasury bills by the end of the Iranian fiscal year (March, 2016), the ministry's website reported.
"Contractors received 5.5 trillion rials ($183 million) in treasury bills last year," he said, "Treasury bills and participatory bonds are widely welcome in the market. So in line with national budget projections for this year the amount will reach 30 trillion rials."
For the first phase of the payments 10 trillion rials of the bills are ready for distribution.
Major contractors poised to receive the treasury bills include the Construction and Development of Transport Infrastructure Company, Road Maintenance and Transportation Organization, Iran Civil Aviation Organization and the Islamic Republic of Iran Railways.
The bills are being issued to finance investment projects, the government secures it and they can be traded in Fara Burse (Iran's over-the-counter market), Akhoundi said.
The Economy Ministry issues Islamic treasury bills valued at 1 million rials ($33.7) a piece with one-year maturity and Bank Melli sells the bills electronically.
Local media has often reported that the government and many state and government organizations are in the red to the tune of billions of dollars pending from the former administration, especially money owed to thousands of contractors.  Due to mounting economic problems and the steep decline in crude prices the government has defaulted both to state-owned banks and the army of contractors waiting to be paid for months with many on the verge of bankruptcy and unable to pay wages.


Short URL : https://goo.gl/xvHL4G
  1. https://goo.gl/hQ0DKd
  • https://goo.gl/7Zp105
  • https://goo.gl/r7Ezco
  • https://goo.gl/AERXEm
  • https://goo.gl/SemHE4

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...