Alnasiri calls for banks and the stock market to invest in government bonds

Views 68 Date 05/05/2016 - 17:35

BAGHDAD / Economy News ...

Banking expert Samir Nasiri said the Iraq Stock Exchange is an economic market aims to regulate and control the securities between buyers and sellers, according to special rules and instructions are subject to the law of the market No. (74) for the year 2004 in order to attract investments indirect national and foreign, including supports and contributes to increasing capital formation in the overall economy.

Economic recession

He Alnasiri in an interview for »Sabah» that the number of joint stock companies in the trading market of 98 Iraqi company total shares (8.9) trillion shares constitute the banking sector, 64 percent of the total, and other sectors make up 36 percent of the total outstanding shares, adding: The number of shares deposited in the depository shares (6.7) trillion shares, representing 76 percent of the shares listed on the market.

He said Iraq Stock Exchange has significantly affected the economic recession and the financial crisis experienced by the Iraqi economy since 2014 due to the continued decline in global oil prices and the costs of the war on terror and other economic accumulations led to the decline in the growth rate in GDP (0.5 percent) and rising unemployment rates to 30 percent and poverty to 25 percent and inflation to 2 percent.

Money supply

Alnasiri pointed to a decline in the savings rate among banks to the extent of 20 per cent against an increase of the proportion of compactness to 80 percent of the total money supply in the market is reflected in the business market, he explained that all of this led to a decline in share prices in the banking sector and other sectors in the trading market rates It ranged between (50-85 percent) also contributed in defining the role of the Iraq Stock Exchange in attracting investment and supporting the national economy for it.

Among Alnasiri: to enable the market to overcome the current situation requires that the sectoral bodies of the participating companies in the market not to militancy in some of the instructions issued by, for example, the Iraqi Central Bank and the Department of Registration of companies in the Ministry of Commerce and the General Authority for taxes, which focused increasing the minimum capital and its impact the decline in stock prices without nominal prices, Maidao to carry out studies submitted by the economic feasibility of joint stock companies to increase their capital to the uses of those increases and give a clear opinion in connection with it to the Securities Commission and the Central Bank of Iraq before approving increases in capital.

He stressed the importance of follow-up and monitoring and evaluation system for the performance of contribution and determine the kinks and negligence and violation of the laws and regulations companies, and the emphasis on the contribution to provide disclosure of monthly, quarterly and annual that transparency reports of companies offer annual date financial results no later than 60 days from the end of the year

Deposit guarantee

For the purpose of activating the role of the Iraq Stock Exchange in attracting investment we suggest taking measures as well as the establishment of the Deposit Insurance Corporation and the issuance of its own legislation in order to protect the deposits of depositors and encourage citizens to go to the banks and to benefit from all the services provided by the central purpose of lifting the savings ratio to calculate the proportion of compactness and address the lack of liquidity in the banks and the impact on the cash market trading.

He stressed the need to promote and activate the CBI initiative to lend banks to finance small and medium enterprises and the allocation of 10 trillion dinars for this purpose in order to achieve economic and social goal, as well as the banks and the Iraqi market for securities to take advantage of the launch of the central bank's government bond interest rate of 8 percent for a period of two years for the purpose of reimbursement of contractors and mind ensure to give them banking facilities of all kinds of bank bonds, as well as to encourage citizens to acquire in order to withdraw liquidity for internal cash trading.

Alnasiri urged the use of electronic publishing techniques to increase investment in the Iraq Stock Exchange and the granting of financial investment companies traded or purses shares directly manage, as well as a review of company law and the law of Iraq Stock Exchange in accordance with the applicable exchange-Arab and international markets.

And called for activating the role of corporate governance by all the relevant listed on the market and protect investors' rights bodies, as well as forcing companies that profit distribution of at least (50 percent) of the net profits earned cash to shareholders, along with the deployment of the special culture circulation and duties of the market Iraq, securities and educate the public capital markets and its role in sustainable development.

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