Economic Council: the face of the central banks to buy bonds to cover the shortage of cash

Views 359 Added 06/21/2016 - 19:32

BAGHDAD / Economy News ...

Iraqi Economic Council, announced that the central bank face of government banks buy and deducting all private companies private sector bonds, noting that it will cover a large part of scarce liquidity, while the Securities Commission decided to suspend seven contribution from trading companies for "failing to comply with the instructions of financial disclosure ".

Council President Ibrahim al-Baghdadi, said 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 added al-Baghdadi, "The total amount of these entitlements 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."

He pointed Baghdadi 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 shortage of cash 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.

In turn, economist Mohammed Abdul Latif Al-Ani said in an interview for the "long", that "the process of selling national bonds to the private sector will contribute significantly to the provision of liquidity needed by the government for the benefit of most of the local economy of the country."

He added that "the government out of monetary distress supports recovery of various economic sectors, increasing the investment of the private sector, which depends on the financial institutions of the state in the process of the evolution of his opportunities."

He said al-Ani said "the government budget's deficit of more than 25 trillion dinars paid to finding alternatives which put national bonds, which can be directed to activate the production of industrial, agricultural and tourism sectors we have are from the Central Bank of Iraq to the government to contribute to the plug."

Ani called on the government to "educate the public towards the acquisition of national bonds because of its financial sedate documented period of time specified interest rate is relatively good."

He said the "Optional savings by citizens to provide financial institutions the government cluster of large cash without the need for external borrowing, which not only fills only a fraction of the expenses of the government sectors."

The Central Bank of Iraq, and the head office 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.

For her part, the Securities Commission, the Commission decided to suspend trading in shares of companies (Iraqi Date Processing and Marketing, transport petroleum products, Bank of the economy, the electronic industries, the Iraqi seed production, modern paint industries, Almahj financial converter) for failing to comply with instructions of financial disclosure and corporate " .

And it called on the Commission, companies in hot areas to "provide disclosure by the Chairman of the Board of Directors for the overall situation for the company to be returned to circulation of a (modern construction materials, household furniture industry, construction materials Fallujah, Mosul, to the cities of games)."

The agency said it "decided to suspend trading in shares of companies (Iraqi financial transfer, the trustee of the financial transfer, United Arab financial convertible, Sama Baghdad fiscal transfer) after the registrar of companies endorsement of the decision of the General Authority for companies to change the activity of the company from Mali convert into an Islamic bank after the issuance of capital increase. "

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