TEHRAN (Iran News) – The Central Bank of Iran (CBI) said bonds auctions it usually holds on a weekly basis have generated more than $200 million for the week ending on Tuesday, a boost to government efforts to cover a budget deficit that is set to increase because of the economic costs of the coronavirus pandemic.
“In total, 45.2 trillion rials ($200 million) worth of government debt bonds were purchased in the current week by banks, financial entities, and other investors,” said a CBI statement, Press TV reported.
CBI announcements on weekly bond auctions usually update data on sell-offs and the number of bonds on offer for the next round of auction.
The auctions is part of government efforts to shore up finances through various financial and banking schemes as it feels the impacts of lower economic activity in the country as a result of the spread of coronavirus.
The Tuesday statement said that private and government-run banks were responsible for nearly 25 percent of purchases over the past week.
Bonds sold since last Tuesday had yield rates of up to 21.5 percent, said the CBI, adding that the Ministry of Finance had contributed to 25.5 trillion rials (nearly $116 million) worth of revenues gained from the debts.
It said the bonds had been offered either through an interbank system that is run by the CBI or in the Tehran Stock Exchange where trade has rebounded after a brief plunge seen in recent days.