National doubles Sindh private sector activity

Last update: Monday , June 27, 2016 - 9:04

BAGHDAD - Mostafa Hashemi said economist academic Dr. Essam Mahouelle: The Sindh National, which the government launched yesterday in the payment of outstanding dues to farmers and industrialists will increase private sector activity by these versions since they may sell it to a third party to get the liquidity it needs. He Mahouelle »Sabah» said the move would ease a successful and greatly burden the productive private sector industrial and agricultural branches of the fact that the Sindh National guaranteed 100 percent being issued by the government.

Secondary reserves

He Mahouelle obligations of the national issuing the bond, saying: States often ask government bonds by central banks for several purposes revolve around government funding in question, either fund a project or improvement project, or to fill a budget deficit or any other reason, noting that these bonds carry certain benefits, and governments demand from banks to purchase to be part of the secondary reserves. He continued: But mostly, the countries practicing this kind of types of releases (which are in fact the debt of the government) is a weak or moderate sources of financing for states.

The pace of business

He pointed out that the national government by issuing a bond, it seeks to repay the debt owed to the private sector to ensure the continuation of the pace of business in order to serve the economic process, alluding to the need to ensure the success of liquidity management in the country, especially that it is of a huge return oil country. He stressed that the adoption of the National Mahouelle Sindh, which will result from which its debts to the private sector will be one of the solutions to the financial hardship faced by the country as a result of the decline in world oil prices.

Bond maturity

He pointed out that the government budget will bear the amount of debt service to be paid at the maturity of the bonds, indicating that the government will get rid of the persistent pay the dues of the private sector claims. Mahouelle described the move a success, warning at the same time repeated that the increase represents a recurrence attention economist for planners in the government to do better planning for the future liquidity of the state and not to alienate them.

Monetary Fund

And the opinion of the International Monetary Fund to issue national Sindh said Mahouelle: it's internal economic relationship with Iraq was forced to practice because of the circumstances, but certainly Fund Aerdy Load government budget extra burdens on the current workload. The launch of the bond comes to the payment of overdue private sector to the government, which range from $ 6-7 trillion dinars and delivered the first batch of which cross national bond secured by virtue of which will be concluded to reimburse contractors and companies that have implemented strategic projects proportions advanced implementation and by 100 percent semi executed entirely for projects and decreasing ratio according to the percentage of completion.