ECOSOC: in central banks to buy bonds to cover cash shortages

 Baghdad Ibrahim Ibrahim

2016/06/21 (00:01 pm) - hits: 187 - number (3677)

Iraqi Council announced Monday that the Central Bank in State banks to purchase discount and all bonds for private companies, noting that they will cover a large part of scarce liquidity, with seven securities decided to stop companies from trading for failure to comply with financial disclosure regulations ".

Council Chief Ibrahim Al-Baghdadi "term" in a statement, a copy of it, to "Central Bank of Iraq in three State banks, Rafidain and Rasheed and Iraqi trade purchase and discount all the Special Government bonds to be issued and paid for private companies instead of financial receivables overdue for these companies and 50% of total receivables as a down payment.

Al-Baghdadi said, that "the total amount of these receivables amounting to 3.5 trillion dinars will be liquidated to cash to be rewarding and meaningful step to private companies after the extensive damage inflicted on this vital sector, by delaying payment of these benefits by the Government," Al-Baghdadi said "these payments will cover a large part of the cash shortages, which will move the wheel and movement of financial trading in all markets, adding that it will be solved many social problems and legal and tribal," stressing that "Central Bank Commitment to these banks to meet any need or shortage of cash for the purpose of completing purchases and deduct all such bonds from their owners.

The Central Bank issued in (15 March 2016), internal national bonds to finance the budget deficit in Iraq as a result of the general decline in oil prices to below $ 30 a barrel.

Economist, said Mohammad Abdel Latif al-Ani in the interview for "range", "sale of bonds Alou private intention will contribute significantly to provide liquidity needed by the Government for the benefit of most of the country's domestic economy."

"The Government's exit from her distress cash supports recovery of different economic sectors, thereby increasing investment opportunities for the private sector, which depends on the State of financial institutions in the process of evolution".

ANI said that "the Government budget deficit of more than 25 trillion dinars paid alternatives including national bond that can guide to activating productive sectors, industrial, agricultural, tourist and Dina are from the Central Bank and the Government to contribute to the plug. ANI called on the Government to "educate the public towards the acquisition of national bonds for its sedate specific period of documented financial benefit is relatively good.

The optional savings by citizens offers financial institutions the Government large cash block without the need for external borrowing which doesn't fill only a fraction of government sectors. "

The Iraqi Central Bank, headquartered in Baghdad and the President has four branches in Basra and Sulaymaniyah and Erbil, Mosul, founded as an independent Iraqi bank under the Central Bank of Iraq Act of 6 March 2004, the Bank has the responsibility of maintaining price stability and monetary policy implementation, including exchange rate policies and management of foreign reserves and the issuance of currency management, in addition to the regulation of the banking sector.

The Securities Commission said in a statement received (range) a copy, said that "the Commission decided to stop trading on shares of companies (manufacturing and marketing of Iraqi dates, transporting oil products, economy Bank, electronic industries, Iraqi seed production, modern dyes industries, comprised of financial transfer) for non-compliance with financial disclosure and corporate instruction."

It invited, in hot areas to provide disclosure by the Chairman on the overall position of the company to be returned to trading (modern structural materials, furniture industry, construction materials, Mosul, Fallujah and cities games). "

She continued that organ "Decides to stop trading on shares of companies (financial transfer Iraqi, trustee of remittance, remittance, Arabic Airlines United Baghdad for remittance) after the company registration service authentication on the public authority's decision to change companies company activity from transferring money to an Islamic Bank after the increase of capital.