By Christopher W. Holton
Thanks to the work of Barack Obama and John Kerry, the Islamic Republic of Iran, the world’s most active state sponsor of terrorism, is once again able to tap into international sources for raising funds.
And given that Iran has dominated the world of Shariah-compliant finance for years, it’s no surprise that they are turning to Shariah-compliant short-term bonds to raise money now.
Readers should keep in mind that money is the most fungible of commodities, so, when Iran is able to raise money in any manner, it is able to more easily carry out its nefarious activities, such as sponsorship of Jihadist terrorism and the proliferation of weapons of mass destruction and ballistic missiles…
Iran will issue Islamic Treasury Bills, its version of short-term sovereign debt, for the first time on Monday in an attempt to provide a fresh fiscal stimulus for its cash-strapped economy, according to people involved in the move.
About $300m-worth of the Treasury Bills — a sharia law-compliant way for the government to raise money — will be offered to investors at a steep discount to their face value in a sign of how nascent capital markets are developing in Iran.
The public offering will test the international community’s reaction to Iran’s risks following a breakthrough nuclear agreement with world powers that is expected to partially lift sanctions on the country next year.
This is the first opportunity in many years for the market to give its verdict on the sovereign debt of Iran. The government, according to Mr Zamani, is planning $600m more of these Islamic T-bills in the coming months.
Saeed Laylaz, an economic analyst, said: “These Treasury bills with such small amounts cannot help our economic problems but their issuance is the first step toward reviving financial relations with the world and seeing if foreigners and the Iranian expatriate community trust this market after the nuclear deal.”