Central Bank announces bond offering and a national five categories to the public


Baghdad / Ibrahim Ibrahim

Central Bank of Iraq, announced on Wednesday his intention to put forward a national bonds in five categories of the middle of this month, adding that her annual interest rate of 6%. And among it it can be used as collateral for loans to financial facilities, economists called for the need to fight corruption and the restructuring of financial institutions of the state drastically.

The Governor of the Central Bank of Iraq and the Agency, on the Keywords, revealed the launch of the sale of government bonds through this March, while stressing the importance of an auction of foreign currency sale to maintain the stability of the dinar exchange rate and that it "does not constitute a waste of public money or smuggled to him."
The bank said in a statement, received the "long" version of it, he "will launch national bonds (nominal) on behalf of the Ministry of Finance in nominal terms and from the middle of this month, March 15 and ends on 15 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 and will be 6% interest per annum and is 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, can also be traded on the Iraq Stock Exchange, buying and selling and be deductible the public and private banks. "
In turn, the economic expert on behalf of Abdul Hadi said in an interview for the "long" that "the process of sovereign bonds raised in the domestic market contributes to withdraw financial Almktensat citizens gradually."
"The current financial crisis and the inability of the federal budget that has worsened dramatically as a result of lower oil prices and the situation in the government in the unenviable position because they lack the necessary cash for a walk everyday business."
Abdul Hadi said that "the launch of sovereign bonds for public subscription needs to accompany the plans from which to invest money in the creation of sales strategy projects without dispensing the career staff of the state entitled monthly salaries."
He said the "Iraqi society lacks a culture of financial trading through government outlets as a market of Iraq Securities or banks, so you must set up advertising campaigns intense and simplified precede the bond sale process to explain to the public how to take advantage of the financial Moktnzachm rapid and profiting from."
Abdul Hadi said that "the expansion of the domestic market needs to reconsider some of the laws and regulations that began nearly two decades and that do not comply with the developments in the global financial market developments and the increase in banks and companies during the past few years."
For his part, economist Abbas Ibrahim al-Bahadli said in an interview for the "long" that "the government steps in to control the repercussions of the financial crisis experienced by the ill-considered and may not correspond with the reality of the Iraqi economy, which tends to collapse gradually."
"The sale of government bonds to the public absolutely will not work, because the lack of mutual trust between citizens and the state of financial services that are always applied laws arbitrarily without taking into account the interests of economic and financial personnel."
Bahadli said that "the scourge of corruption in state institutions and private banks to prevent the success of any future move to build an economic base can the advancement of the deteriorating domestic market since nearly eight years."
He stressed that "the insistence of the central bank to continue to sell the dollar through a daily auction, which represents a window for smuggling and money laundering over the past years emptied state coffers and contributed to the decrease in financial reserve rapidly."
He said the "the executive organs of the state, especially the economic ones need a comprehensive restructuring is to change the corrupt and backward departments operated for years as opposed to the law of state employees, which defined periods of time for all officials and those with special grades."
The Governor of the Central Bank, the agency said on Saturday (February 27, 2016), "The strategy of the Central Bank for the years 2016 to 2020 will witness a qualitative leap," noting that "the percentage of Iraqis who use the banking system as it is ambitious amounting to only ten percent."
Keywords for revealing "the launch of the first government bonds traded through this March," returned to "the auction of foreign currency is not a waste of public money or smuggled to him."
He warned the governor, of "restrictions on the sale of the foreign operation," noting that it "will lead to the lifting of the dollar's exchange rate against the dinar."
Keywords felt that "the presence of more than fifty banks in Iraq, a large number," calling for "the integration of the private banks to reduce their number in proportion to the actual need."
He said the central bank governor and the agency that "the banks that granted the license recently will not enter sell the currency effect only after years and after verification of the practice and commercial banking, real," pointing out that "the Central Bank is obliged to grant Muaqath to open new banks as long as it achieved the necessary conditions and guarantees" .
Iraq is seeking to issue an internal national bonds to finance the deficit in the public budget for Iraq as a result of falling oil prices to below $ 30 per barrel.