Alnasiri: the banking sector constitutes 64% of the total shares in the Iraq Stock Ex
Alnasiri: the banking sector constitutes 64% of the total shares in the Iraq Stock Exchange
Views 125 Date 07/08/2016 - 21:51
Economy News .. Baghdad ...
Banking expert and member of the World Union of Arab Bankers Samir Nasiri said the Iraq Stock Exchange is the economic market aims to regulate and control the securities between buyers and sellers, according to special rules and instructions are subject to the law of the market No. (74) for the year 2004 in order to attract indirect investment, national and foreign, to support and contribute to increased capital formation in the overall economy.
The number of joint stock companies trading in the market (96) is an Iraqi company's banking sector 64% of the total shares and other sectors make up 36% of the total shares.
Iraq Stock Exchange has been greatly affected by the economic recession and the financial crisis experienced by the Iraqi economy since 2014 due to the continued fall in oil prices globally, and the costs of the war on terrorism, and other economic accumulations led to the decline in the growth rate in GDP (0.5%) and rising unemployment rates to 50 percent and poverty to 25% and inflation to 2% and the fall in the savings rate of the Central Bank of Iraq to the extent of 20%.
Ratio also increased compactness of the total monetary mass of citizens is reflected in the business market. All this led to a decline in share prices in the banking sector and other sectors in the trading market rates ranging between (50% - 85%).
In order to activate the role of the Iraq Stock Exchange in investment and supporting the national economy to attract. It requires securing several factors.
They do those sectoral supervisor to contribute to the treatment and lack of militancy in some of the instructions issued by the companies. For example, the Iraqi Central Bank and the Department of Registration of companies in the Ministry of Commerce and the General Authority for taxes, which focused on increasing the minimum capital and the impact on stock prices falling below the nominal prices.
For it is necessary to carry out feasibility studies by the joint-stock companies to increase their capital to the uses of those increases and give a clear opinion in connection with it to the Securities Commission and the Central Bank of Iraq before approving increases in capital.
And the development of control system, monitoring and evaluation of the performance of contribution and determine the kinks and negligence and violation of the laws and regulations companies
And the need to emphasize the establishment of joint stock companies to provide disclosure and transparency of monthly, quarterly and annual progress reports on the annual financial results in a period not exceeding 60 days from the end of the fiscal year.
For the purpose of activating the role of the Iraq Stock Exchange in attracting investment
He suggested Alnasiri the importance of the establishment of the Deposit Insurance Corporation and the issuance of its own legislation in order to protect the deposits of depositors and encourage citizens to go to the banks and to take advantage of all the services they provide, and to achieve the central objective to raise the savings ratio on the proportion of compactness account and address the lack of liquidity in the banks and the impact on the cash market trading .
And encouraging and activating the CBI initiative to lend to banks for financing small and medium enterprises and the allocation of 6.5 trillion dinars for this purpose to achieve economic and social goal.
As well as the banks and the Iraqi market for securities to benefit from the launch of the central bank's government bond interest rate of 8% for a period of two years in order to reimburse contractors and mind bond guarantee to give them banking facilities of all kinds by the banks as well as to encourage citizens to acquire in order to withdraw liquidity for internal cash trading.
He stressed the use of electronic publishing techniques to increase investment in the Iraq Stock Exchange.
As well as giving the freedom of the financial investment companies traded or purses shares directly manage.
And the importance of reviewing corporate law and the law of Iraq Stock Exchange, according to what is in place in the bourses Arab and international markets .. and activating the role of corporate governance by all the relevant authorities listed in the market, and the protection of investors ' rights by requiring companies that profit distribution of at least ( 50%) of the net profits earned cash to shareholders.
He stressed the importance of spreading Alnasiri own culture, trade and duties of the Iraq Stock Exchange and educate the public capital markets and its role in sustainable development.