The Ministry of Finance announces the issuance of construction bonds in the financial market

[yota691]

The Iraqi Securities Commission: Direction to issue government bonds and list them in the market

Iraq Stock Exchange - archive

 July 26, 2021 3:03 PM03

Mubasher: The Chairman of the Iraqi Securities Commission, Faisal Al-Haims, revealed today, Monday, that there is a tendency to issue government bonds; Either to the government itself or to one of its institutions and to be listed in the money market or the Iraq Stock Exchange.

 

Al-Haymes said, according to the Iraqi News Agency (INA), that the issuance of bonds will revitalize the market, noting that the authority continues to obtain this support to strengthen the performance of the Iraqi Stock Exchange.

Al-Haymes added that about a year ago, the authority’s presidency was changed and there was a formation of the Securities Commission, and some departments were created such as the Consumer Protection Department, the Money Laundering Department, and the Training and Development Department, indicating that this comes within the government’s plan and the white paper that is reflected on the market’s performance.

The head of the Securities Commission indicated that the first half of this year compared to the second half witnessed the development of trading in the stock market, with an increase of about 360%, pointing out that these figures came from the statistics of the Arab Monetary Fund, which it monitors on a monthly basis.

[yota691]

The Iraqi Stock Exchange welcomes the issuance of government bonds and calls for a successful marketing plan

 

Executive Director of the Stock Exchange, Taha Ahmed Abdel Salam. "Economy News"

Market Economy News - Baghdad The Director of the Iraq Stock Exchange, Taha Abdel Salam, welcomed the desire of the Ministry of Finance to offer treasury bonds in the market, calling for a successful marketing plan. And Finance Minister Ali Abdul-Amir confirmed that the Ministry of Finance is working to launch treasury bonds worth one trillion to 1.5 trillion dinars during this period. And Abdul Salam said in his speech to "Economy News", that "the Iraqi Stock Exchange has previously organized the process of listing, depositing and trading national bonds using the electronic system ." He added that there are instructions for the inclusion and circulation of government bonds, but it remains for the entity that issues the bonds to carry out a successful marketing process, and for the community to be marketed by savers and investors as individuals, not just institutions, banks and companies.

Views 102   Date added 15/08/2021

[yota691]

GM DV Hope everyone has a Bless Sunday...

[yota691]

Electronic platform for letters of guarantee
269 views Jul 24, 2021

 

Central Bank of Iraq

The Central Bank of Iraq launches the electronic platform for letters of guarantee, electronic bond www.cbi.iq

[Laid Back]

Great news.!!!

 

Electronic platform for:

-letters of guarantee 

-electronic bond

 

The CBI continues their quest to an open market economy 

 

Go CBI

Go electronic banking

Go development 

Go RV

[yota691]

The Central Bank of Iraq announces the first issuance of construction bonds in categories of 500 thousand and one million dinars

archival

 September 26, 2021 08:40 PM

 

 

Mubasher: The Central Bank of Iraq announced, today, Sunday, the first issuance of construction bonds in denominations of 500 thousand and one million dinars.

And the Central Bank said in a statement received by the Iraqi News Agency (INA), that “in continuation of the role of the Central Bank of Iraq in developing the local financial market and mobilizing savings, the Central Bank offered the first issuance of (construction) bonds of two categories (500,000) dinars (with an annual interest rate of 6%). ) for two years, and (1,000,000) dinars (one million dinars) with annual interest (7%) for four years.”

He added, "The purchase of these bonds will be through authorized banks, which receive purchase requests from those wishing to do so and deliver them a receipt for the purchase amounts of these bonds, as the Central Bank issues them and delivers them to the banks within a short period."

[yota691]

 

The Central Bank of Iraq issues new financial bonds

 

 2021-09-26 13:01

 

Shafaq News/ The Central Bank of Iraq announced on Sunday the issuance of new bonds in two financial categories.

The bank stated in a statement received by Shafak News Agency; In continuation of the role of the Central Bank of Iraq in developing the local financial market and mobilizing savings, the Central Bank offered the first issue of (construction) bonds of two categories (500,000) dinars (five hundred thousand dinars) with annual interest (6%) for two years, and (1,000,000) dinars. (One million dinars) with annual interest (7%) for four years.

The central bank confirmed; That "the purchase of these bonds will be through authorized banks, which receive purchase requests from those who wish to do so and deliver them a receipt for the amounts of purchase of these bonds, where the Central Bank issues them and delivers them to the banks within a short period."

[yota691]

The Central Bank announces the first issuance of bonds {Build}

•  Time: 09/26/2021 19:53:32
•  
•  Reading: 1,222 times

  

 

In continuation of the role of the Central Bank of Iraq in developing the local financial market and mobilizing savings, the Central Bank offered the first issuance of (Binaa) bonds of two categories (500,000) dinars (five hundred thousand dinars) with annual interest (6%) for two years, and (1,000,000) dinars (one million). Dinars) with annual interest (7%) for four years.
The Central Bank confirmed that the purchase of these bonds will be through authorized banks, which receive purchase requests from those who wish to do so and deliver them a receipt for the amounts of purchasing these bonds, as the Central Bank issues them and delivers them to the banks within a short period.

Central Bank of Iraq

[yota691]

The Central Bank of Iraq issues "Binaa" bonds

 

 

- 09-27-2021 09:17 AM - Read: 3629

 

The Central Bank of Iraq announced, on Sunday, the first issuance of (Bina) bonds.
In a statement, the bank stated, “In continuation of the role of the Central Bank of Iraq in developing the local financial market and mobilizing savings, the Central Bank offered the first issuance of (construction) bonds of two categories (500,000) dinars (five hundred thousand dinars) with annual interest (6%) for two years, And (1,000,000) dinars (one million dinars) with annual interest (7%) for four years.
The Central Bank stressed, “The purchase of these bonds will be through authorized banks, which receive purchase requests from those who wish to do so and deliver them a receipt for the amounts of purchasing these bonds, as the Central Bank issues them and delivers them to the banks within a short period.”

[6ly410]

 

Central Bank of Iraq @cbiraq · Sep 26 The Central Bank of Iraq offered the first issuance of (Binaa) bonds of two categories (500,000) dinars (five hundred thousand dinars) with annual interest (6%) for two years, and (1,000,000) dinars (one million dinars) with annual interest (7%) for four years. The Central Bank confirmed that the purchase of these bonds will be through authorized banks

[horsesoldier]

Reckon I wuz mistooken..... I thought you needed a globally recognized currency to do this .... back to the barn for more oats & fiber for me. 

[shixjr]

10 hours ago, horsesoldier said:

back to the barn for more oats & fiber for me. 

You keep any of that "dangerous" Ivermectin in that barn?  That stuff will kill you, ya know!  😉

[yota691]

An eight-paragraph parliamentary statement rejecting a central bank decision

political| 01:38 - 29/09/2021

 

 

 

 

Baghdad - Mawazine News
The National Nahj parliamentary bloc announced, on Wednesday, its rejection of the Central Bank's decision to issue bonds (which is internal borrowing).
She stated that there were no reasons and justifications for this decision according to the data below: -
1. Such a decision can be heard in the days when oil selling prices were below (thirty dollars per barrel), but with the rise in oil prices to nearly eighty dollars, there are no acceptable reasons or justifications for it. .
2. The efficiency of collecting the revenues of the outlets and from all the governorates of Iraq, including the region, will save no less than (ten trillion dinars) at the least amounts, which was confirmed by the Ministry of Finance in previous official statements.
3. Taking strict control measures on the currency auction will save annually no less than (four trillion dinars) that go to undeserved profits to parasitic banks, indicating indicators of the return of their ownership or participation in the ownership of influential political parties. Rather, the figures indicate that the erroneous profits obtained by these banks during the days of fabricating a jump in the exchange rate at the end of 2020 in just two months amounted to more than (1,3) trillion dinars.
4. The pressure of unnecessary expenditures and based on the actual expenditures of the past years will confirm the absence of the need to hamper the state with internal or external borrowing. The actual expenditure for the year 2019 amounted to (108) trillion dinars, and the actual expenditure for the year 2020 amounted to (72) trillion dinars, so it becomes clear that the planned expenditure for the year 2021 The amount of (130) trillion dinars is far from the reality of the need for actual spending, which requires the pressure of many expenditures that disappear in general, vague, general sections that make monitoring the validity and reality of spending difficult.
5. Cancellation of unfair federal licensing rounds contracts, as well as regional oil contracts with approved foreign companies, in the form of partnership contracts and replacing them with a beneficial national formula. The figures indicate that the annual budget expenditure is approximately (13) trillion dinars as dues for licensing rounds, and the ratio of (35% to 40%) Of the oil produced in the region, the dues of foreign companies go.
6. Reviewing the contracts of mobile phone companies, as official documents indicate that the revenues appearing in the data of these companies for the year 2013, for example, amounted to (4.2) trillion dinars for only two companies out of a total of three companies. 6) Trillion annually, so why do most of them go to companies and a few people and deprive the public treasury of those revenues, especially since the mechanism for collecting these revenues is possible through the establishment of a national telecommunications company.
7. It is strange that the same documents indicate that the tax of these companies amounted in some years to (1%) only and in other years (3%) only, which is a clear waste and neglect of state revenues.
8. Correcting the contracts of the Ministry of Electricity with investors who represent economic fronts for influential political parties will save several trillion dinars annually. Ended 29/A43

[shixjr]

5 minutes ago, yota691 said:

The efficiency of collecting the revenues of the outlets and from all the governorates of Iraq, including the region, will save no less than (ten trillion dinars)

If you are in a hole and want to get out, the first thing you must do is STOP DIGGING!  If you can save 10 trillion here and another 5 trillion here and then save 20 trillion here, after a while you start saving BIG money.  Most changes start small and build from there.  Building a huge bank account is never about how much you save, it's about the habit of saving.  Start saving small and watch how that motivates you to make other changes that end up saving you big!  This "poor man's mentality" has been what has frustrated me about Iraq more than anything.

 By the way, 10 trillion is not a small amount in my book!  I think I am one of those trillionaires Biden talked about the other day; WE DON'T EXIST! 😄

[yota691]

A source for “Economy News”: The bonds are worth a trillion dinars and will go to fill the budget deficit

 

dinar currency

banks Economy News - Baghdad An official source confirmed that the construction bonds offered by the Central Bank in favor of the Ministry of Finance will support the deficit in the 2021 budget. On September 26, 2021, the Central Bank decided to offer bonds in two categories: “a bond of a category of 500 thousand dinars with an annual interest rate of 6% and for a period of two years, and a bond of a category of one million dinars with an annual interest of 7% for a period of 4 years.” According to the 2021 budget, the Ministry of Finance will issue national bonds worth 8.5 trillion dinars to finance the budget deficit. The source, who preferred not to be named, told "Economy News", "The bonds launched by the Central Bank are worth a trillion dinars, and the bank will deduct them for the benefit of the Ministry of Finance." He added that the interest on the offered bonds is very excellent, and will contribute to the development of the local financial market, noting that the Ministry of Finance will use these funds to support the deficit and may go to support the operating budget or the investment budget. And he indicated that the problem that stands in the way is the difficult timing in which it was presented, which is turning the current government into a caretaker government and thus these bonds may fail, adding that many owners of money will invest in these bonds. He pointed out that in the event of the success of these bonds, bonds worth another trillion dinars will be issued.

Views 144   Date Added 09/29/2021

[shixjr]

In today's market, a bond worth 6 or 7% is pretty good.  This should bring in some investors.

[yota691]

 

Two economists: The new central bank bonds are another type of borrowing

 

 2021-09-30 06:19

 

Shafaq News/ Two economists said that the goal of the Central Bank of Iraq's recent step regarding issuing new financial bonds is to reduce the rise in monetary inflation in the country. 

And the Central Bank of Iraq announced last Sunday, the issuance of new bonds in two financial categories.

The bank stated in a statement received by Shafak News Agency; In continuation of the role of the Central Bank of Iraq in developing the local financial market and mobilizing savings, the Central Bank offered the first issue of (construction) bonds of two categories (500,000) dinars (five hundred thousand dinars) with annual interest (6%) for two years, and (1,000,000) dinars. (One million dinars) with annual interest (7%) for four years.

The central bank confirmed; That "the purchase of these bonds will be through authorized banks, which receive purchase requests from those who wish to do so and deliver them a receipt for the amounts of purchase of these bonds, where the Central Bank issues them and delivers them to the banks within a short period."

Other loans

The economist, Ahmed Saddam, says that “bonds are a type of loan, but they differ as they represent loans or borrowing from the central bank to the public, and this is done in contracts, and it is an important monetary policy used by many countries of the world, and it is one of the important tools of the central bank’s tools in Controlling the presentation of cash.

Saddam mentions to Shafak News Agency; “The objectives of offering these bonds by the Central Bank at this particular time is for the purpose of financing and reducing the monetary mass as a result of the high level of financial inflation, as the Central Bank offers these bonds for the purpose of reducing the purchasing power of individuals, and at the same time there is an ability by the Central Bank to Lending to some investment agencies and having sufficient liquidity to approve some projects, so that he moves these hoarded funds in homes and from the pockets of individuals and directs them in an investment manner.

Saddam continues, "In Iraq, there is an important or partial flaw that is concentrated in the lack of trust (between the citizen on the one hand and the central bank and banks on the other) and exemplified by these bonds that are issued from time to time, on the grounds that if we assume that the exchange rate of the Iraqi currency has been reduced, As it happened in the past, here we will be facing an obsession with the citizen or the bond holder if the exchange rate is reduced, which is not expected to happen, then we will be facing a great loss for the bond holder. 

He asserts that "the lack of understanding between buyers and decision-makers will push many not to go to such decisions to buy these bonds, as the issue needs explicit guarantees in this regard." 

internal borrowing

A member of the Iraqi parliament, Ammar Tohme, issued a statement regarding the issuance of these bonds to the public, declaring his rejection of the Central Bank’s decision to issue bonds (which is internal borrowing) because there are no reasons and justifications for this decision according to the data. 

Tohme said in a statement received by "Shafaq News" agency, "Such a decision can be heard in the days when oil selling prices were below (thirty dollars a barrel), but with the rise in oil prices to nearly eighty dollars, there are no acceptable reasons or justifications for it, as The efficiency of collecting the revenues of the outlets and from all the governorates of Iraq, including the region, will save no less than (ten trillion dinars) at the least amounts, which was confirmed by the Ministry of Finance in previous official statements.

And he continued, "Taking strict control measures on the currency auction will save annually no less than (four trillion dinars) that go to undeserved profits to parasitic banks, indicating indicators of the return of their ownership or participation in the ownership of influential political parties. Rather, the figures indicate that the illegal profits obtained by those Banks, during the days of fabricating a jump in the exchange rate at the end of 2020 in just two months, amounted to more than (1.3) trillion dinars. 

He pointed out that “the pressure of unnecessary expenditures, and based on the actual expenditures of the past years, will confirm the absence of the need to handcuff the state with internal or external borrowing. The plan for the year 2021, amounting to (130) trillion dinars, is far from the reality of the need for actual spending, which requires the pressure of many expenditures that disappear in vague public sections that make monitoring the validity and realism of spending difficult.” 

He pointed out, "The cancellation of the unfair federal licensing rounds contracts, as well as the region's oil contracts with approved foreign companies, in the form of partnership contracts, and replacing them with a beneficial national formula. Of the oil produced in the region, the dues of foreign companies go.”

Tohme called for "reviewing the contracts of mobile phone companies, as official documents indicate that the revenues shown in the data of these companies for the year 2013, for example, amounted to (4.2) trillion dinars for only two companies out of a total of three companies. About (6) trillion dinars. 

government agent

turn; The economic expert, Abdul Rahman Al-Mashhadani, explains how bonds are issued in Iraq, stressing that there are two bodies within the country that issue them (the first is the government, the second is the central bank, and the last can act as an agent for the government for the purpose of issuing bonds), but the matter is now different in these bonds, as The bank is the one who issued these bonds and not an agent for the government.

Al-Mashhadani spoke to Shafaq News Agency; That "when the government issues bonds, whether internal or external, the goal is to finance the deficit in the general budget or finance some important projects, and this is what happened during the past years, the last of which was in 2016, and it was to finance the deficit in the public budget, and the government did not succeed in this step." 

He adds that "when the central bank issues bonds, it has monetary goals other than the government's goals, and this last central bank step comes after several loans it provided to the government and housing initiatives it provided to citizens, and all these steps confirm that the central bank pumped a new currency into the market with a value of more than 30 A trillion Iraqi dinars, because the money supply rose from 64 trillion to 94 trillion dinars in the market, and this led to a rise in inflation rates in the country, through the indicators of the Ministry of Planning, which confirmed that inflation in the country rose by 14%. 

Al-Mashhadani explains, “The Central Bank issued these bonds for one goal, which is to control inflation, because 70 to 77% of the currency issued by the Central Bank goes to the market and does not return as deposits in banks, and thus is trapped in citizens’ pockets and hoarded in their homes,” referring to That “there is confusion between the central bank’s procedure and the government’s procedure in terms of issuing bonds, and therefore you see some political blocs commenting that this procedure is incorrect and that it is launched at a time when the oil price may be $30 or less, but this procedure was not issued by the government, but by the bank and it aims to control On the inflation taking place in the country, and it is not, as was rumored, that it is a rescue of some small banks in the country.”

[yota691]

 

Iraq announces the issuance of (construction) bonds in the financial market and determines the benefits for investors and residents

 

 2021-10-01 04:10

 

Shafaq News/ The Ministry of Finance announced the Public Debt Department on Friday that it, in cooperation with the Central Bank of Iraq, issued construction bonds that are tradable in the stock market, with the guarantee of the ministry.

According to the categories of bonds offered for trading:

1- A class bond (500000) five hundred thousand dinars with an annual interest of 6% for a period of two years.

2- A bond of category (1000000) one million dinars with an interest of 7% for a period of 4 years.

A statement issued by the ministry today, received by Shafak News Agency, indicated that the public wishing to purchase can submit their requests through authorized banks.

The ministry called on all investors and citizens to take advantage of this investment opportunity, because of its returns in favor of the borrower (the investor) and for the entire national economy.

She pointed out that the process of trading these bonds comes in accordance with the plans and mechanisms of the process of financial sustainability and improvement, in addition to the positive economic effects represented in raising the levels of economic activities for various sectors and enhancing the availability of broad development opportunities.

And in the context of implementing the paragraphs of the comprehensive financial and economic reform plans within the adoptions of the white paper, and in implementation of the financial and monetary policy development programs in Iraq, according to the statement.

[yota691]

With annual interest up to 7%.. Iraq offers construction bonds in the stock market

Stock market

 October 01, 2021 12:32 PM

Mubasher: The Iraqi Ministry of Finance announced today, Friday, the offering of construction bonds in the stock market.

The Ministry of Finance stated, in a press statement, that the Ministry's Public Debt Department, in cooperation with the Central Bank of Iraq, issued construction bonds that are tradable in the stock market, with the guarantee of the Ministry of Finance.

The Ministry of Finance has determined the categories of bonds offered for trading as follows:

A five hundred thousand dinars bond with an annual interest of 6 percent for a period of two years.

A bond of one million dinars with an interest of 7% for a period of 4 years.

The ministry called on investors and citizens to take advantage of this investment opportunity, because of its returns in favor of the borrower (the investor) and for the entire national economy.

She pointed out that the process of trading these bonds comes in accordance with the plans and mechanisms of the financial sustainability process and its improvement, in addition to the positive economic effects of raising the levels of economic activities for various sectors and enhancing the availability of broad development opportunities and within the framework of implementing the paragraphs of the comprehensive financial and economic reform plans within the adoptions of the white paper, and in implementation of programs Developing fiscal and monetary policy in Iraq.

[yota691]

The Ministry of Finance announces the issuance of construction bonds in the stock market

 

money and business Economy News _ Baghdad Today, Friday, the Ministry of Finance announced the issuance of construction bonds in the stock market. A statement by the ministry, received by "Al-Iqtisad News", stated that "the Ministry's Public Debt Department, in cooperation with the Central Bank of Iraq, issued construction bonds that are tradable in the stock market, with the guarantee of the Ministry of Finance, and according to the categories of bonds offered for trading: 1- A bond class (500000) five hundred thousand A dinar with an annual interest of 6% for a period of two years 2- A bond of category (1000000) one million dinars with an interest of 7% for a period of 4 years. The ministry called on "investors and citizens to take advantage of this investment opportunity, because of its returns for the benefit of the borrower (the investor) and for the entire national economy," noting that "the process of trading these bonds comes in accordance with the plans and mechanisms of the financial sustainability process and its improvement, in addition to the positive economic effects represented by raising The levels of economic activities for the various sectors and the promotion of broad development opportunities and within the framework of implementing the paragraphs of comprehensive financial and economic reform plans within the adoptions of the White Paper, and in implementation of the programs for the development of fiscal and monetary policy in Iraq.

Views 91   Date added 01/10/2021

[yota691]

The Ministry of Finance announces the issuance of {construction} bonds in the financial market and clarifies its details

•  Time: 01/10/2021 11:23:16
•  
•  Reading: 1,014 times

  

{Economic: Al Furat News} The Ministry of Finance / Public Debt Department, in cooperation with the Central Bank of Iraq, announced the issuance of construction bonds tradable in the stock market, with the guarantee of the Ministry of Finance.

And Finance published the categories of bonds offered for trading, which are {a bond of 500 thousand dinars with an annual interest of 6% for two years, and a bond of a category of one million dinars with an interest of 7% for a period of 4 years}.

The ministry pointed out that "the public wishing to purchase can submit their requests through authorized banks," calling "all investors and citizens to take advantage of this investment opportunity, because of its returns in favor of the borrower (the investor) and for the entire national economy."

She pointed out that "the process of trading these bonds comes in accordance with the plans and mechanisms of the financial sustainability process and its improvement, in addition to the positive economic effects of raising the levels of economic activities for various sectors and enhancing the provision of broad development opportunities and within the framework of implementing the paragraphs of the comprehensive financial and economic reform plans within the adoptions of the white paper, and in implementation of programs Developing fiscal and monetary policy in Iraq.

[yota691]

Adviser to the Prime Minister clarifies the bonds of {construction} and their objectives

•  Time: 10/1/2021 15:13:07
•  
•  Reading: 2,795 times

  

{Political: Al Furat News} The financial and economic advisor to the Prime Minister, Mutahar Muhammad Salih, clarified the {construction} bonds launched by the Ministry of Finance today, Friday.

"The issuance of construction bonds supports public finances by borrowing from the public's financial surpluses," Saleh told {Euphrates News}.
And that "this step will be either putting these funds into the investment budget or reconstruction and strengthening the capital of government banks, especially the real estate and housing banks, to raise the lending capacity of citizens."
He stressed that the decision "supports the renaissance of construction, which is the process of recycling savings and converting them into investments, which is a positive step that supports citizens and moves stagnant funds."
The Ministry of Finance / Public Debt Department announced today, in cooperation with the Central Bank of Iraq, the issuance of construction bonds tradable in the stock market, with the guarantee of the Ministry of Finance.
And Finance published the categories of bonds offered for trading, which are {a bond of 500 thousand dinars with an annual interest of 6% for two years, and a bond of a category of one million dinars with an interest of 7% for a period of 4 years}.
The ministry pointed out that "the public wishing to purchase can submit their requests through authorized banks," calling "all investors and citizens to take advantage of this investment opportunity, because of its returns in favor of the borrower (the investor) and for the entire national economy."
She pointed out that "the process of trading these bonds comes in accordance with the plans and mechanisms of the financial sustainability process and its improvement, in addition to the positive economic effects of raising the levels of economic activities for various sectors and enhancing the provision of broad development opportunities and within the framework of implementing the paragraphs of comprehensive financial and economic reform plans within the adoptions of the white paper, and in implementation of programs Developing fiscal and monetary policy in Iraq.

Raghad Daham

[yota691]

 

Finance: Borrowing powers are part of the budget until the formation of the new Iraqi government

 

 2021-10-01 09:04

 

Shafaq News/ The Ministry of Finance clarified on Friday that the borrowing powers within the recent decisions are part of the budget approved by the House of Representatives to address the transitional period until the formation of the new government.

And the ministry said in a statement today, that "recently, false information has spread through irresponsible social media about the borrowing authorization granted to the Minister of Finance in accordance with the recent decisions of the Council of Ministers. The motive behind this false news is electoral propaganda only."

The statement added that "all the loans referred to in the resolution were negotiated and approved months or even two years ago and are part of the budget approved by the House of Representatives," noting that "the Minister of Finance has been authorized to make it valid during the transitional period between the elections and the new government." Just" .

The ministry indicated in its statement that "the public has the right to know why the ministry was forced to borrow despite the recent rise in oil prices. This is due to the fact that the government's current expenditures of salaries, retirement and social transfers may reach approximately 6 trillion Iraqi dinars per month. This is before expenses are added other ongoing, investment expenditures, debt service at the local and international levels, and the fulfillment of arrears from previous obligations to the electricity and other sectors.”

The statement went on to say: However, everyone must realize that Iraq must abide by the decisions of the Organization of Petroleum Exporting Countries that obligate it to reduce its oil production, and the dues of licensing contracts and Kuwait war compensation, which are deducted from export revenues, must be paid.

The revenues that we get from oil exports per month are about 6.5 trillion Iraqi dinars at current prices.

The statement added that it is completely wrong to claim that the ministry is borrowing for no reason as the government is obligated to borrow to meet budget targets and maintain credit rating stability in domestic and international markets.

The statement continued by saying that the ministry's credit status was confirmed by all major rating agencies, which praised the financial measures of the Ministry of Finance, the Government and the Department of the Economy, and each of these ratings was published on the ministry's website for all to see and confirm the international community's support for our policies.

In its statement, the ministry noted that: Negotiable bonds to improve the work of the money market and provide safe and rewarding securities to investors and private institutions.

The ministry also confirmed in its statement that it is keen to diversify sources of funding and is working persistently to reform the tax and customs system after years of neglect.

The Ministry of Finance concluded its statement by saying: As for the unruly accusations and allegations made by the makers of harm, we reject them completely and reserve the right to sue them for the serious harm that they inflicted on the public's trust through their unfounded allegations.

[yota691]

 

Iraqi banks acquire 99% of government bonds

 

 2021-10-04 04:54

 

 

Shafaq News / A government source said, on Monday, that most of the bonds offered by the government are bought by banks through their cash reserves with the Central Bank of Iraq, while citizens are satisfied with only one percent of those bonds.

From time to time, the Central Bank issues bonds in favor of the Ministry of Finance, for the purpose of financing some public expenditures, as it recently issued construction bonds in denominations of 500 thousand dinars and one million dinars.

The source told Shafak News Agency, "The banks use the mandatory cash reserve at the bank, which ranges between 35 to 40% of its capital of 250 billion dinars, for the purpose of purchasing the bonds offered by the government through the Central Bank."

The source added, "99% of these bonds are bought by banks and one percent is bought by the citizen," noting that "buying bonds by banks achieves great profits for them through the high interest offered, and the amounts that banks buy for these bonds are frozen with the bank as a reserve. You will move it by buying these bonds."

The source noted, "The government issues bonds from time to time due to its lack of financial liquidity to finance public expenditures," noting that "the government owes the Central Bank more than 21 trillion dinars as a result of borrowing funds during the last period to cover employee salaries and other expenses."

[yota691]

Updated cash sterilization

Saturday 02 October 2021 472

 

Mustafa Mohamed Ibrahim 

 

Updated cash sterilization is a process by which monetary authorities ensure that foreign exchange flows from abroad do not affect the monetary basis, as the monetary basis is one of the components of the overall money supply.

Many countries are trying to influence the value of their local currency in the foreign exchange market, through the operations of buying and selling that currency against the foreign currency. If the monetary authority sells the local currency, which was not in circulation before, this measure will expand the local monetary base (increase), and the same is true if the monetary authority buys more of its local currency, and does not enter that currency into circulation, the effect here will be deflationary (declining) on a monetary basis.

In Iraq, the circulating monetary sterilization is the window for selling foreign currency by withdrawing the Iraqi dinar from the market in exchange for providing the market with foreign currency, which is the (dollar). As for the new monetary policy mechanism, which is the updated monetary sterilization by offering national bonds with the first two issues in the amount of (500,000) Dinar with annual interest (6%) for two years, and the second issue in the amount of (1,000,000) dinars and annual interest (7%) for four years, for the purpose of withdrawing liquidity from the public through banks and at the same time called building bonds.

Public requests are submitted through all banks, and then the bank pays these requests to the Central Bank of Iraq, for the purpose of providing the bank with the required bonds. During the other banking operations carried out by the banks, in addition to the fact that the banks did not focus only on the foreign currency sale window, but rather moved the other goals undertaken by the banks.

 In my opinion, it is called (the updated monetary sterilization), as the Central Bank of Iraq continues to achieve its development goals towards a sustainable economy, as well as being the only lung of the Iraqi economy in all crises, starting from 2015 until now.

In conclusion, the Ministry of Finance should direct its government banks (Al-Rafidain, Al-Rasheed, Al-Iraqi Trade) to support this method carried out by the Central Bank towards achieving development goals, as well as reducing the financial deficit, based on the Federal General Budget Law of the Republic of Iraq No. (23) of 2021 / Article II - Deficit / Paragraph 2 - A - 2, which authorized the issuance of national bonds to the public, in support of the budget, and do not forget that there are national bonds issued in 2021 with an amount of (8.5) trillion Iraqi dinars, which is part of the sources of financing the planned deficit in the 2021 budget.