The Study to Investigate the Increasing Role and Share of Debt Market to Finance the Iranian Economy: Opportunities, Challenges

The development and deepening of debt market in the economy can de facto pave the way for more financial transparency, non prevalence of administered determination of interest rate in the market and more degree of independence for the Central Bank to implement the monetary policy with greater efficiency to accomplish its anti-inflationary targets in toto. Besides, it may per se provide the required resources to diminish the incidence of government indebtedness to its claimers, enhance the banks capacity for short-term financing the small scale and medium sized firms and smooth transition of bank driven economy to the market based economy, Quid pro qua. Though, in the absence of well articulated infrastructural underpinning in the economy, the spillover benefits of debt market development in the financial system of any country will be fragile and embryonic pro rata. Hence, in this paper an attempt is made to construe the exigency of debt market development in Iran, observing the successful scenarios of developed countries, Sui generis. In this context, we have tried to postulate the structure of debt market in Iran and its prerequisite inner-structures for expansion of debt market in the economy and subsequently to contemplate on this basic "lemma" that how the debt market can optimally finance the economy in Iran, Sine qua non.