Iraqi national bonds strengthen private sector activity

13-07-2016 06:46 PM

Oil Minister Adel Abdul - Mahdi, said that «between 400 thousand people and 500 thousand being prepared annually for the labor market, while the state is saturated in the form outpaced the ability of absorbed», adding that «it requires finding solutions activate the private sector and bring about a holistic coup in the central perception of the state, as they look to the private sector and not a follower Nada. »

He stressed in an intervention during the dialogue seminar held by the Iraqi Economic Council, on « the need to revitalize the banks, because no matter how the banking sector is weak passes activate the economic movement in which», pointing out « the need for education and encourage savings and re - lending the benefits of a simplified, though the state bore a part, to stimulate certain sectors ». He said: «it is necessary to give the role of the private sector and deal with him as a partner in economic construction and not a competitor, and we also recognize that the government is a failed businessman and corrupt».

The Chairman of the Economic Council of Iraq Ibrahim al - Baghdadi, the «Early steps that action by the Council in order to activate the idea of bonds in collaboration with the Central Bank and the Office of the Prime Minister». He called on the central bank governor to «not these bonds caused losses for the business as a result of the government banks deducted».

He praised the role of «Central» in «approval of the direct exchange of these bonds, but afraid to delay the launch and the discount percentage of its value, leading to damage to corporate credit as a result of delayed dues in exchange for more than two years, in addition to the loss realized by the decline of the dinar exchange rate by 7 percent".

In addition, he explained the central bank governor on the Keywords that «92 percent of the budget is from oil revenues , only eight percent of the rest of the other local resources, while economic balance sustainable imposes secure balance between revenues and income, and in this case is the ratio of eight percent only sustainable resources. »

The «work to find any solution helps to support investment and stimulate economic activity, to strengthen the Central Bank 's role and responsibility in the economic revitalization». He disclosed that the «total Sakarzh the central bank to the government until the end of this year, up to 30 trillion dinars (about US $ 25 billion)».

He said an economist Essam Mahouelle, that the national bond which was launched by the government to pay arrears to farmers and industrialists «will increase private sector activity due to these versions, because if sold to third parties will obtain liquidity». It was announced in a press statement that the move «successful and greatly ease the burden on the productive private sector industrial and agricultural two branches, because the content of the Sindh National hundred percent.» Turning to the obligations of the national version of Sindh, adding that the countries «Frequently Asked government bonds via the central banks of the objectives revolve around government funding in question».

He said: «These bonds carry certain benefits, governments have been asking banks to purchase in order to be part of the secondary reserves». He pointed out that the government issued the National Sindh «seeks to repay debt owed ​​to the private sector, to ensure the continuation of the pace of business in order to serve the economic process». And he saw the need to «successful liquidity management in the state , especially with it a huge return oil country.» He said that the adoption of the national bond , which will pay its debts to the private sector, «will be one of the solutions to financial distress in which Iraq is going through, as a result of the decline in world oil prices

And the opinion of the International Monetary Fund issued a national bond, announced it Mahouelle «internal economic relationship with Iraq was forced to practice because of the circumstances, but the IMF certainly does not accept the government budget download additional burdens than those existing».

The launch of the bond is intended to pay late dues to the private sector and the government , which range from $ 6 to 7 trillion dinars, and received the first installment of which cross national bond secured. »

The Economic Adviser to the Prime Minister and the appearance of Mohammed Saleh, pointed out that « the government adopted a national bond which it has ratified within this year 's budget, and worth Alasaddarah 5 trillion dinars to reimburse contractors and farmers in accordance with the rates and mechanisms developed so». He pointed out that contractors dues payable «amounting to 7.6 trillion dinars, and will pay 100 percent of the strategic projects that completed 80 percent of them.»