Economic Council: the face of the central banks to buy bonds to cover the shortage of cash

Economic Council: the face of the central banks to buy bonds to cover the shortage of cash

06/21/2016 (00:01 pm) - the number of readings: 194 - the number (3677)

 Baghdad / Ibrahim Ibrahim

Iraqi Economic Council, announced on Monday that the central bank face of government banks buy and deducting all private companies private sector bonds, noting that it will cover a large part of scarce liquidity, while the Securities Commission decided to suspend seven contribution from trading companies for "lack of commitment instructions of financial disclosure. "

said Council President Ibrahim al - Baghdadi , in a statement received" long ", a copy of which," the Central Bank of Iraq face three government banks Rafidain and Rasheed Iraqi and commercial purchases and deducting all the special government bonds that will be issued and paid for private companies instead of late financial dues for these companies, amounting to 50% of the total dues as a down payment. " He said al - Baghdadi, that " the total amount of dues amounting to 3.5 trillion dinars , roughly where it will be liquidated into cash to be this step rewarding and meaningful to private companies after the great damage to this vital sector, due to delayed payment of dues by the government . " He pointed Baghdadi "these funds will help cover a large portion of the scarcity of cash, where would move the wheel and the movement of financial trading in the markets of all, in addition to that they will solve many of the social and tribal and legal problems , " stressing that " the central bank pledged to the banks to cover any need or shortage liquidity has for the purpose of completing the acquisitions and deducting all these bonds from their owners. "

the central bank issued in, (15 March 2016), internal and national bonds to finance the deficit in the public budget for Iraq as a result of falling oil prices to below $ 30 per barrel. in

turn , economist Mohammed Abdul Latif Al - Ani said in an interview for the "long", that " the process of selling national bonds to the private sector will contribute significantly to the provision of liquidity needed by the government for the benefit of most of the local economy of the country."

he added that " the government out of distress cash supports recovery of various economic sectors, increasing the investment of the private sector , which depends on the financial institutions of the state in the process of the evolution of his opportunities. "

said al - Ani said" the inability of the government budget of more than 25 trillion dinars paid to finding alternatives which put national bonds , which can be directed to activate the industrial, agricultural and tourism sectors and productivity we have one of the Iraqi Central Bank to the government to contribute to the plug. " He called Ani government to "educate the public towards the acquisition of national bonds because of its financial sedate documented period of time specified interest rate is relatively good."

He said the "Optional savings by citizens provides financial institutions the government cluster of large cash without the need for external borrowing , which not only fills only a fraction of the expenses of the government sectors. " The Central Bank of Iraq, and the head office in Baghdad and has four branches in Basra and Sulaymaniyah, Irbil and Mosul, he founded the bank independent Iraqi under the Central Bank of Iraq Law issued on March 6 , 2004, and is the responsibility of the bank is responsible for maintaining price stability and the implementation of monetary policy , including exchange policies exchange and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector.

for its part the Securities Commission said in a statement received (range) copy of it, " the Commission decided to suspend trading in shares of companies (Iraqi date processing and Marketing, transport petroleum products, Bank of the economy electronics industry, the Iraqi seed production, modern paint industries, Almahj financial converter) for failing to comply with instructions of financial disclosure and corporate. "

and called on the Commission, companies in hot areas to" provide disclosure by the chairman of the board of Directors of the situation overall for the company to be returned to the circulation of a (material modern construction, household furnishings industry, Fallujah , construction materials, Mosul , to the cities of games). " the

agency said it" decided to suspend trading in shares of companies (Iraqi financial transfer, the trustee of the financial transfer, United Arab financial convertible, Sama Baghdad fiscal transfer) after the Department of authentication issuance registration of companies on the decision of the General Authority for companies to change the company 's activity from Mali convert into an Islamic bank after the capital increase. "