Financing of the budget deficit by about one trillion and 500 billion dinar

Last updated: Saturday 3 December 2016-9:39 am

Baghdad/morning Central Bank regulates the 21st of this month a public auction to sell Treasury remittances to the annual term 364 days at $300 billion dinars releases under this year's borrowing plan. According to a source at the Bank to "morning" that this auction will be the last of its kind during this year under the plan announced by the Treasury contained 11 an auction to sell Treasury remittances.

The Central Bank, as a financial agent for the Ministry to manage auctions based on transfers public debt Act, which authorized the Ministry of Finance Treasury discounting guaranteed by the Government for government funding to meet part of the deficit in the public budget for Iraq.

And participates in the auction number of recipient Government entities as minor welfare service and social welfare net besides retirement service, as well as a number of private banks. According to rough statistics for "morning" has been selling money orders in the amount approaching 1 trillion 500 billion dinar since the first auction held in February of this year until last month's auction.

Borrowing plan to issue Treasury remittances by this year's auctions include subtract $5 trillion dinars for sale to government agencies and other recipients in the same context, the Central Bank said the Treasury auction results for annual term (364 days), held on 23 November.

The Bank said in a statement that the auction sale saw 115 billion and 500 million of the $300 billion old dinars circulate to banks that participated in the auction and won the kodmanha presentations. "Remittances were sold the highest price cut for competitive auctions of 5% and average return amounted to 4.78 percent.

In the same context economic researcher feras Amer that the investor, especially in the financial market and the bond market always looking for means to maximize total revenue expected from his wallet under a degree of risk that he believes is appropriate.

Investment in bond of high risk investments types of little interest at the same time. Amer said in an interview for "morning" ' risks are likely lower than expected return, the greater the likelihood of achieving low return or (loss) was high risk and vice versa.

The degree of risk varies from continued investment to another financial investments are risk-free, including government bonds compared to total investment in new or specialized firms with highly volatile operations as risk rises significantly.

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