Iraqi national bonds strengthen private sector activity

[yota691]

Central supports project developers and national bonds

 

 

7/11/2016 0:00   BAGHDAD - Suha Sheikhli  said Director General of the banking and credit of the Central Bank of Iraq Ihsan Yasiri that the problems experienced by the state such as poor liquidity , or the public treasury deficit led to ease the central bank and the relevant authorities of the ten entrepreneurs from contractors creditors after their borrowing money from banks.  Yassiri added in an interview with «morning» that brackish financial facing the country have made the government reluctant to pay their dues is what made them indebted to banks and thus coincided with a liquidity shortfall in paying customers dues.  He Yasiri the central bank to remedy this situation and decided in coordination with the government, to issue bonds on behalf of creditors the size of the government 's indebtedness to contractors, contractors and up to 7 trillion and 500 billion dinars, explaining that what happened is the issuance of up to 40 percent of the debt of sovereign bonds guaranteed by the government and duration of 3 years and interest rate of 5 percent.  he pointed out that the Ministry of planning in turn data and information base will complete soon and paid to The central bank , which was commissioned to manage it , as the Ministry of Finance is the representative of the government, when a contractor asks amount of two billion dinars being executed contract for a government entity to come Mlbg two billion letter from the Ministry of planning, the central bank issued a bond at 40 percent of the amount of two billion ie we will issue a bond up to 800 million dinars a neighborhood support.  He Yasiri been allocated to three state banks (Rafidain and Rasheed, and Bank of Iraq to the trade) to deal with this meal and we asked these banks to deduct these bonds interest, pointing out that this decision is one of the most important decisions taken after the year 2003 by the financial authorities and the cash to solve a big problem for the creditors of the government. «Marshall Iraq» Yasiri pointed out that the project «Marshall Iraq», which represents the central bank 's initiative to support the liquidity of banks in lending to support the economy and to meet the needs of investors and enhance liquidity for lending, guarantees two initiatives for the first allocation trillion dinars enhance the liquidity of private banks to support small and micro - enterprises , and these trillions dinars go to the banks where they are granting customers a loan of an amount not exceeding 50 million dinars for the various needs it , and the central bank will examine these transactions and is filed calculates the bank 270 million dinars called enhance liquidity and some banks suggested we should give it an advance in advance were given advance. support projects and adds Yasiri The second measure is to support medium and large enterprises to allocate five trillion dinars . this amount includes the productive sectors Kalzerai and industrial and housing this money was distributed to support the liquidity of agricultural banks and industrial real estate and housing fund joint where they took Trliuna and 600 billion dinars.  the launch of the project and put specific periods not exceeding in the extreme cases for 45 days and must lend the bank his client, and the central bank took it upon himself to fight all forms of corruption in order to ensure not to harm these efforts and not to scatter the money being the people 's money, as we have a study on the projects of young people.

 

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[yota691]

Iraqi national bonds strengthen private sector activity

13-07-2016 06:46 PM    

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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.»

 

[ChuckFinley]

Add this to the private sector development and Iraq is on the right track.