Economic Council: the face of the central banks buy and discount bonds to private companies

2016-06-20 17:34:00 | (Voice of Iraq) - Baghdad

Iraqi Economic Council, announced Monday, the central bank bought the face of government banks and private companies deducting all private - sector bonds, noting that it will cover a large part of the lack of liquidity, and the movement of the wheel and the movement of the financial markets , trading in all.

Council President Ibrahim al - Baghdadi said in a statement that " the Central Bank of Iraq face three government banks Rafidain and Rasheed Iraqi and commercial purchases and deducting all the special government bonds that will be issued and paid for private companies instead of late financial dues to these companies, amounting to 50% of the total dues as a down payment."

He said al - Baghdadi, that " the total amount of dues amounting to 3.5 trillion dinars , roughly where it will be liquidated into cash to be this step rewarding and meaningful to private companies after the great damage to this vital sector, due to delayed payment of dues by the government."

Baghdadi and pointed out that "these amounts will cover a large part of scarce liquidity, which would move the wheel and the movement of financial trading in the markets of all, in addition to that they will solve many of the social and tribal and legal problems , " stressing that " the central bank pledged to the banks to cover any need or lack of liquidity has for the purpose of completing the acquisitions and deducting all these bonds from their owners. "

The central bank issued in, (15 March 2016), internal and national bonds to finance the deficit in the public budget for Iraq as a result of falling oil prices to below $ 30 per barrel.

It is noteworthy that the Iraqi Central Bank, with headquarters in Baghdad and has four branches in Basra and Sulaymaniyah, Irbil and Mosul, he founded the bank independent Iraqi under the Central Bank of Iraq Law issued on March 6 , 2004, and is the responsibility of the bank is responsible for maintaining price stability and the implementation of monetary policy , including exchange policies exchange and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector.