Expert: the bond sale will fill part of the budget deficit


Thursday 10 March 2016

He competent affairs of Economic lion Mohammad Ali, that the issuance of central bank bills in various denominations Bajil two years is to meet the federal budget deficit, returned them, good move by the Bank.

Mr Mohamed Ali of the Iraqi National News Agency / nina / " The federal budget for the current year a law passed domestic borrowing as one dam the federal budget deficit and domestic borrowing is through the issuance of bonds for government debt instruments items, adding that, two roof is one of the relatively medium maturities Iraqi bonds that the auctions of treasury transfers in the past were based within a short Ajal between 3 to 6 months. "

He said to, " the launch of the Central Bank of the bonds on behalf of the Ministry of Finance reflects the cooperation between the fiscal and monetary authorities in order to cover state expenses for the current year."

He stressed that " the size of Asdarih fall within the acceptable limits of government debt, stressing that" the government should not expand its bond offering coming period being be due payment within the time frame does not guarantee approved by improved economic reality , so the internal assumption process must be carefully calculated. "

The central bank may launch on Wednesday a government debt securities on behalf of the Ministry of Finance of the five categories the middle of this month, indicating that the annual her interest amounting to 6% among it can be used as collateral to obtain financial facilities loans.

The bank said in a statement on Wednesday, he said he "will launch national bonds (nominal) on behalf of the Ministry of Finance in nominal terms and as of the middle of this month , March 15 and ends on the 15th of April next year . " , adding that "Asdarih will offer five categories include (100,000 and 250,000, and 500,000 and 1,000,000 and 5,000,000)."

The bank said that " the value of these funds to be raised will reach 1.5 trillion dinars , " noting that " the sale will be at a discount 6% interest and will be annually and payable by the Ministry of Finance in March , 142,018. " the bank added that" can citizens and banks all provide purchase orders to the Central Bank directly , "pointing out that" he can use those bonds as collateral for loans and facilities or any transactions require collateral, it can also be traded on the Iraq Stock Exchange , buying and selling and are deductible to the public and private banks.