Iraq Stock Exchange is planning to attract savings

Views 60 Date 10/08/2016 - 19:43
Economy News / Agencies ...

Said Executive Director of the Iraqi market for securities, Taha Ahmed Abdul Salam, that the market is «organized four workshops in the first half of this year, as part of its efforts to develop ways of indirect investment attraction, and the aim of the publication is direct investment to all segments of society, culture and attract national savings and channel them towards investment in securities, and the establishment of joint-stock companies and build investment confidence. »

He pointed out in an intervention during a workshop organized by the market, that «the second goal is to build analytical information centers and direct media activity towards the development goals, and build the foundations of investment in the private sector through the capital market».

He said that the capital market in Iraq «need to develop economic activity after the draft governance of joint stock companies prepared by the Securities Commission, which instructions were discussed, analyzed and after the performance indicators of joint stock companies and working mechanisms of the guarantor bank and investors trading online».

The workshop recommended b «importance of completing the legislation of the rules and regulations in line with the upcoming economic policy and the requirements of the desired development in accordance with the plans set by the market, as well as the issuance of the rules of governance for solid corporate work».

She stressed the recommendations that emerged from the workshop titled «the role of the rules of governance contribute to and disclosure of corporate and bank guarantor and trading after investors to attract investment in the Securities and activated», «the role of the operating performance of joint stock companies listed on the calendar share prices in the trading». And it called for companies to «show interest in these values ​​in their annual reports».

The President of the Board of Governors of the Iraqi market for securities Thaer Hashim, in an intervention during the workshop, that the market is «designed to unify the visions of project governance of joint stock companies, which is the basis for the success of companies listed and the protection of small investors corporate management control».

He stressed the «need instructions for trading of new financial instruments, portfolio management and investment funds for corporate financial investment and the issuance of bank».

The Iraqi Stock Exchange is looking to regulate securities between buyers and sellers and control, based on the rules and instructions of the private market subject to the law number 74, to attract investments indirect national and foreign, which contributes to the increased capital formation in the overall economy.

As the number of Iraqi contribution to trading 98 corporate market, and brings the total shares to 8.9 trillion.

The banks contributed 64 percent of the total, and shares of other sectors 36 percent.

The economist said Samir Nasiri, «life» on the sidelines of the workshop sessions, said that «the economic recession and financial crisis in the Iraqi economy since 2014 due to the continued decline in global oil prices and the costs of the war on terror and other economic accumulations, led to the decline in GDP growth to 0.5 percent and the unemployment rate rose to 30 percent and poverty to 25 percent and inflation to 2 percent, and the fall in the savings rate of the Central Bank of Iraq to 20 percent ». And did not lose sight of the «compactness ratio rose to 80 percent of the total money supply in the form of citizens reflected on the business market.»

Alnasiri He pointed out that all this «has led to a decline in banking and economic sectors, share prices in the trading market rates ranging between 50 and 85 percent, and contributed to curtail the role of Iraq Stock Exchange to invest and support the national economy to attract.» In contrast, he saw the need to «prepare economic feasibility of the joint-stock companies studies to increase their capital to the uses of these increases, giving a clear opinion by the Securities Commission and the Central Bank of Iraq before approving increases in capital».

He called for «the development of control and follow-up and evaluation of system performance and contribute to determine the kinks and dereliction where companies.»

Content link