The Council issues report on corporate benefits and contractors Extender

Since 2016-06-03 at 15:18 (Baghdad time)

Baghdad scales news

Symposium resulted in Iraqi Economic Council last Tuesday 31/5 and under (automatic reimbursement of private sector companies through government bonds) first report on the Symposium and of the opinion of the Ministry of finance sector and represented by proxy Finance Minister Fadhil Nabi Othman and Central Bank of Ihsan Al-yasiri, Director General of the finance and credit and the parliamentary sectoral of Haitham al-Jabburi, a member of the parliamentary Finance Committee and paved the generous Captain parliamentary economy and Investment Committee member wefrat Tamimi, Chairman of the Committee on agriculture, water and Marsh.

The symposium was launched welcome speech by Ibrahim Al-Baghdadi (Messaoudi) head of Iraqi Council citing Iraq's Economic Council Symposium on Saturday, which was a 28/5 at the Meridien Hotel under the same title that addressed the subject of government bonds and attended Attorney Haitham al-Jabburi, a member of the parliamentary Finance Committee and Governor of the Central Bank, Deputy Minister of planning and Director-General of the Department of government contracts and a large number of economic organizations and contractors.

Al-Baghdadi said that today's Symposium is complementary to its culmination Saturday seminar, where important party did not attend the Executive side (Ministry of Finance) have not been addressed in discussions, practical procedures in purchasing and discount those bonds with the support and encouragement of the Ministry of finance as the top of the pyramid in financial authority and supported by the Iraqi Central Bank which supports the purchase of these bonds as representing the top of the pyramid in monetary policy.

Central Bank Governor promised that he would buy a proportion of these bonds will encourage banks to do something similar in coordination with the Ministry of finance and that private creditors only bonds don't want Iraqi without possibility to liquidate for cash to meet their obligations towards others. The businessman was damaged and the contractor and investor in his name and reputation and his money and had to sell his property to meet his obligations as well as the State's reputation had been damaged because of inability to pay the rights of contractors and companies so that local and foreign investors have lost confidence in investment because of distrust between contractors in accordance with formal contracts, an investor who has to employ his capital for the implementation of the project and we hope there is realistic solutions to receive a percentage of those receivables cash payments instead of paying for Bond only.

Fadel Abdul Nabi Othman spoke under Finance Minister thanked the largeness of the private sector as a good creditor hasn't hurt the State despite his suffering, and you know that the country is very difficult financially despite assurances by officials as the Ministry of finance and the House of representatives and all organs of State are part of the problem because of the lack of coordination and good organization of the financial status of the nature of Government work and political situation did not let the Treasury Department working in the field of technical competence and the situation so bad that it was difficult to disburse salaries In the second half of the year 2015 without some actions taken by the Treasury with the Central Bank and the World Bank where the State imports a month less than two billion dollars whereas salaries only four trillion dinars and at best, and our repellents reached 2.5 billion dollars, and you all know the war spending and the enormous expenditure of money, and we have to pay 10% of receivables as a second cash payment but if country conditionsT without it because of the lack of imports and many expenses as the security and political situation had weakened public confidence in the Government making public bond fiasco, and so came the idea of issuing bonds to contractors and all the people who are asking the State of merchants and displaced and have met with the Central Bank, which was heavily interactive with us and we much requirement; it was of 7.5 trillion dinars and thus must issue bonds Soft half that amount by 50% and the problem was the mechanism by which to resolve this issue and require practical steps were planning to gather information from the provinces on projects in detail and submit them to the Central Bank and the contractor was supposed to review the Central Bank directly to avoid red tape and administrative corruption which can be exposed to him and having a contractor related informationAnd his company and the amount which can be exposed to him and having information on the contractor and his company and the amount requested under the lists sent by the Ministry of planning in order to receive the special bond with this idea technically easy but in financial terms have been difficult because the Treasury must record this process any bond delivered like a Finance Ministry or who do project contractor to their advantage as well as inThe alghih carried out for their projects must be registered like paid dues to the contractor so difficult was the idea of accounting terms, we asked the Central Bank for the period during which we can issue these bonds, they told us that she is three months away in the last meeting we thought of temporary bonds but you will get a problem where some have suggested electronic bond and other ideas were difficult but we found another mechanism to send the planning Ministry claims contractors to the Ministry of finance as the Central Bank is not responsible About payment of contractors and have met with directors of Rafidain and Rasheed and agreed with them that they open accounts for each contractor the amount of bonds that deserve the contractor.

Calculate bond goes automatically from the Ministry of finance to the contractor at the bankers so got rid of temporary bonds which can be subject to fraud and the contractor can bond account used to issue a letter of guarantee credit which can take for the bond loan and could open documentary credit by taking advantage of existing bonds in the bank account after three months of permanent bonds issued under the Central Bank accounts. Open in the Rafidain and Rasheed will send bonds to finance bankers if the contractor receives the entire bond aonsafha or for needed bank account descend from the amount for which he takes from bonds, as for cash payments we agreed with Rafidain and Rashid a job discount bond to liquefy and been speaking with private banks also made it clear to them that they would benefit twice first interest on aFor a bond there is useful (5%) As interest and that the Bank will take the discount bond can get to 3 or 5% of the value of the bond so that most banks have welcomed this idea and that the parties will be satisfied with this operation, the contractor wants cash and the Bank will do will benefit trade and at the same time, the Central Bank has graciously offered to return the bond discount deducted it drains all or a substantial part thereof, and such a mechanism expected to work 90% of the project to all parties cooperating and helping each other but there was A problem where the planning Ministry has informed us that they had approached all the ministries for the purpose of providing information but not paramedics answer only eight or nine ministries however it might be another mechanism to start with the information that comes bkier requests.

Then spake Attorney Haitham Al-juboori said talked about this topic in a symposium Saturday 28/5/2016 in the presence of the Governor of the Central Bank and Deputy Minister of planning and we will rejoice if this process was applied on the ground because the suffering of hundreds of companies and contractors who had been laid off thousands of workers from their factories and their companies still exist and the most important point is that we doubt the possibility of banks and their ability to carry out this operation, as far as I know there are indebted to the Iraqi Government estimated banks (28 trillion Iraqi dinars) if banks Government capable of it and I doubt it how private banks that lack the cash and I think that if the private banks and collected 45 Bank believe that there's no more cash liquidity. over 29