Gov’t to Issue Bonds to Pay Back Loans on Iran Air ATR Planes

The government’s Economic Council last week approved a proposal of Minister of Roads and Urban Development Abbas Akhoundi, based on which the government is to issue 10 trillion rials ($70 million) worth of bonds and sukuk for financing Iran Air’s new plane orders. 
The measure was initially set to help the flag carrier prepare the down payment needed for purchasing ATR 72-600 aircraft. However, bonds are now going to be used for settling short-term loans taken out by Iran Air last month to take delivery of five ATR turboprops. 
According to Asghar Fakhrieh-Kashan, an advisor to Akhoundi and senior negotiator of Iran Air’s plane deals, the bonds will no longer be used for purchasing new airplanes