Baghdad - the joy of pumice
within government orientations aimed to promote investment opportunities, encouraged the Director General of Mesopotamia Islamic Bank Abdul Hussein Mundhiri the concerned authorities to issue Islamic bonds in exchange for generating investment projects for profit, working on according to the law prescribed. House of Representatives.
The the principle of Islamic instruments to participate in the "finance" the project or invest long or short-term, any participation in the profit and loss, which is equal to what is known globally in trade, finance and companies, "stock" system, support infrastructure projects with the provision of the necessary liquidity to finance, as well as ability to meet cover the fiscal deficit and the provision of term stable conversion long.
He Mundhiri in his statement the "morning" that he formed a committee to study this issue and come up with a draft for the issuance of Islamic bonds submitted a proposal to the central bank for them, was also considered by the Securities Commission, where issued its approval to the draft to satisfy the conditions, as sent to the legitimacy of the bodies of the three Islamic banks to study them and to express an opinion on the extent of legality and legitimacy is to be held on the basis of which a meeting to consider the amended version, working the issuance of instructions by the central bank to ensure the application speed.
Iraq has a bank Islamist government and one only, and 7 Islamic private banks, as well as the opening of an Islamic Gulf Bank (Abu Dhabi Islamic Bank).
and said Mundhiri that the Islamic instruments issued in exchange for investment projects "profitable" and include tax and customs exemptions, stressing the need for legislation by a special law in this area and not instructions and that to the intersection with tax and customs laws, besides that the investor does not function according to instructions, but looking for a legal cover ensures the rights of investment projects, he said.
He said the Islamic Sukuk is trading between the money of depositors, investors and money end banks including developmental support the infrastructure of the States, a a more than 7 are all kinds of investment, pointing to the possibility issued by the Ministry of Finance and not the central bank, as in some countries.
has issued this type of instruments in several Muslim countries, including Malaysia and the GCC, Iran, Pakistan, Sudan and in non-Islamic countries, including Britain and Japan and Germany and the State of Texas, US, where the financing needs of projects in the GCC countries was estimated at $ 800 billion until 2017, as the total instruments estimated in 2015 at $ 3 trillion dollars.
and the country's need for these trends in the investment process to support the establishment of enterprises, is mired legislation long periods to be issued, Mundhiri praised the work of Islamic investment funds operate idea of Islamic Sukuk itself be solutions to ensure speed in the establishment of projects, working time duration of 1 year to 3 years, contrary to the instruments of the Islamic running 5 years upwards.
He said the possibility of Islamic Mesopotamia Bank establishment of this fund and that for his work on in accordance with the law and not instructions, adding that these trends support the coverage of the annual investment budget, whether in boxes or Islamic bonds, and in particular it is working against the generating investment projects for-profit called the "Islamic bonds generating profit", which does not contain a specific interest, but subject to profit and loss, also contribute to the financing of the general budget indirectly.
Characteristics of Islamic instruments
The Islamic instruments properties that it is based on the principle of participation in the profit and loss, as it is a document issued on behalf of the owner of equal value, which are issued and traded in accordance with the conditions and controls legitimacy, as well as categories It represents a common share in the ownership of assets or benefits or services.
it is also characterized by these instruments to provide quick cash, a few risks for the investor to being able to sell them to a third party if they felt his loss, as he is a partner in the parent, whether a gain or loss, but does not represent our Source, along with its ability to fiscal deficit for governments or projects cover.
The development of instruments market of $ 500 million in 2001 even amounted to about $ 31 billion by the end of 2006, according to the Dubai Financial Market, for its part, sees Moody's Global Credit Rating Company volume growth in versions instruments may range between 30-35 percent annually.