Economy, Business And Markets

Gov’t Debt Payment Mechanism Approved

Gov’t Debt Payment Mechanism ApprovedGov’t Debt Payment Mechanism Approved

Lawmakers on Monday allowed the government to settle its debts to the banking system through Central Bank of Iran’s foreign exchange resources for one year as part of the amendment to the 2016-17 budget.

“The government is allowed to use CBI’s resources only this year, it also needs to calculate its exact amount of debts to each banks, as well as distinguishing the share of government-owned and private banks from the total debts,” said Hosseinali Haji Deligani, a member of Majlis Budget Commission, FNA reported.

“Each bank’s debt to the CBI and their debts to the government need to be cleared as well. The government is also required to clarify the amount it pays to the banks for raising their capital,” he said.

Haji Deligani also noted that Majlis Research Center, Iran Audit Organization and CBI are obliged to jointly prepare the required data.

“The government is expected to provide the parliament with a report on the issue every three months,” he said.

Economy Minister Ali Tayyebnia said the government’s total debts inherited from the previous administration now amounts to 5 quadrillion rials ($165 billion).