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EghtesadOnline: The government plans to issue 85 trillion rials ($2.23 billion) of Islamic Treasury Bonds in the near future to fund incomplete projects across the country, the chairman of Iran Planning and Budget Organization said.

Mohammad Baqer Nobakht added that currently more than 2,000 construction projects across the country are incomplete, SENA reported.

“The government had earmarked about 600-650 trillion rials ($15.7-17.1 billion) for completing these projects in the budget bill for the new Iranian year (March 2017-18). However, after the revision by the Majlis Joint Commission on Wednesday, the figure was raised to 700-750 trillion rials ($18.4-19.7 billion),” he said.

The commission is a parliamentary body responsible for reviewing the budget bill as well as the five-year development plan proposed by the government before its final ratification, Financial Tribune reported.

The government has issued 420 trillion rials ($11.05 billion) of bonds so far in the current fiscal year, which ends March 20, to make up for its budget deficit.

“These bonds will not be offered on the capital market,” the head of SEO, Shapour Mohammadi, said.

“I have said this before: Our priority lies with the equity market and financing the private sector. The government has all the right to issue bonds to raise capital, but we will not prioritize the government,” he added.

The government pays up to 25% on its one-year ITBs, while inflation stands at about 8.7%. In the absence of risks, it is only natural that investors would shy away from stocks.

Mohammad Baqer Nobakht Iran bonds Islamic Treasury Bonds