An In-depth Analysis of the Islamic Treasury Bonds (Akhza) and its Advantages and Challenges

Paying government debts especially the government debt to private contractors is a dilemma that itself has become a factor in postponing private sector debt to the banking system. Providing Islamic treasury bonds (Akhza) to creditors is the simplest solution. This solution has been experienced in developing countries and has brought good results. Using, analytical method, this paper seeks to analyze and evaluate the advantages and challenges of the Islamic treasury bonds. The nature of Akhza and its market, which is based on the production or purchase (cash or non-cash), and credit transaction and discount, does not have a legal problem. The question is that, what are the advantages and challenges of Akhza? In fact, Akhza has many advantages on the banking system such as creating a boom, government debt control without inflation, transparency of the profit margin, increasing financing opportunities, production of information, deepening the capital market, reducing the pressure on the banking system. One of the challenges of these bonds, which require a further investigation, is continuing government debt, the sequence issuance of bonds and the black market formation. Findings show that Akhza despite its necessity will cause the state to incur chronic and massive debts.