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Sovereign sovereign fund and economic development guarantees
25/12/2017 1:56 AM [rtl] D.mzar Mohammed Saleh First: sovereign fund immersion is sovereign funds submersible Sovereign Sinking Funds in modern financial means business and government whereby organizations can put together with money and put together over time to extinguish the debt, which is money or deposited money used when needed to extinguish a debt or it Money deposited aside to extinguish the cost of capital equipment when it is depleted, including technical or technological extinction . The submarket funds also enable the said organizations to repurchase their debt or issued bonds at a fraction of their prevailing prices or at preferential prices. The balance sheet of the submersible funds is calculated on the basis that the Sinking Fund is equal to assets and debts or bonds . As national infrastructure today represents net wealth of zero or low growth or what can be called negative marginal stock sometimes, the flow of national income and investment allocations from it, especially oil revenues are in a position to be equivalent to the removal of negative arsenals of energy And the reconstruction of physical reserves (positive) requires the availability of financial accumulations higher than the current capacity of the country to save desired investment equivalent to the desired. Borrowing Product The realization of desirable savings equivalent to the desired investment or a scheme in the physical infrastructure and different production capacities must be paid to the borrowing product to close the funding gap and strengthen the financial leverage of the country for two options that represent the difficult equation in the development of Iraq : the first option: the acceptance of foreign entrepreneurial entrepreneurial sector Accepts the opportunity of country risk The repercussions of the security crisis and the war against terrorism, which makes the foreign contracting sector add to the cost of its contracts called the cost of Iraq (which cost most of the cost of construction, sometimes to between (35-45) percent of the cost of implementation of local entrepreneurship under normal circumstances . The second option: In order to avoid the constraints of the first option, the foreign contracting sector offers the financing of its transactions through an integrated financing cycle that represents the cost of non-concessionary or semi-preferential financing ie low or low interest provided that it is executed by the joint venture companies with the financing institution, Yeh) where the latter provides the specimen savings or unforeseen profit entities executed or funded may be less expensive than the first option due to the availability of liquid collateral acceptable in its borders and Bklv less because of financing guarantees provided by the fund 's sovereign immersion through allocations The annual investment budget available in the general budget. Thus, access to the right exit in development and investment in infrastructure requires overcoming the difficult equation of the current stage hard equation, which is based on the idea of creating a fund sovereign sinking fund Sovereign sinking fed periodically by the allocation of infrastructure projects in the federal budget available from the country's own resources and is constantly offset when withdrawn to extinguish loans The bridge loans provided by the foreign joint venture companies through the foreign government guarantee agencies and the guarantors to ensure continuous implementation and funding to start the contracting work in Iraq to ensure timely and efficient In completion and ongoing financing. The Fund will act as an innovative model that generates liquid financing integration that is equivalent to the withdrawal of the gross loan entitlements provided by the international entities that execute the projects on a regular basis, thus reducing the cost of borrowing and converting it into a concessional concession debt that is closer to facilities secured by liquid flows The submersible box provides the subject of reference. Second: The importance of the Sovereign Sovereign Fund and the indicators of infrastructure 1. The early economic thinking of development indicates that the wealth of the nations is measured by three elements: human capital, investment and development; the second element is the social overhead capital, which is divided into: The so-called physical infrastructure of road, electricity, telecommunications and other networks . The other part of these infrastructure goes to the so-called social capital and means the legal, health, educational, banking and other institutions, as well as the fixed physical capital formation related to the activities of direct production of goods and services such as factories and others. While the third component of wealth measures goes to natural resources and their stocks, which are estimated in Iraq with a net present value of perhaps $ 16 trillion, thanks to the reserves of untapped oil wealth and other material resources, which are twice as high as Australia, while in the United States 45 trillion dollars and in the Russian Federation 76 trillion dollars. Economic capital While Iraq is rich in the third element, it is relatively lacking in the other two elements of wealth, especially the deterioration of fixed economic capital or the so-called physical infrastructure, indicating that the per capita share of that physical infrastructure at present may not exceed one fifth of the same per capita In the material structures on the eve of the outbreak of the Iran-Iraq war when estimated the cost of infrastructure at the time of $ 35 billion, and to return to the same rates in light of the current demographic developments to fill the shortfall in those structures (for the population of Iraq's current 38 million) Demand for investment of not less than 250 billion dollars, the proportion of fixed capital formation to the annual gross domestic product is currently only 25% of it. 2. The common direction of the infrastructure in the national economy is characterized by the fact that it carries a very high fixed initial cost, while having a low variable cost of production, as well as difficulties in pricing and obtaining direct material returns . Levels of national output Investment in infrastructure does not naturally belong to investment in the normal market, but its strategic importance leads to the development of levels and adequacy in direct production activities, because it provides the goods and services necessary to generate high levels of national output through direct or indirect link to activity Thus, production resulting from the operation of investment in social capital feeds services for more than one economic activity and increases the efficiency of production and the optimal use of direct production capacity . 3. Notably, growth rates in current (positive) GDP can not offset negative growth rates in the accumulation of material national wealth unless strong financial accumulations and at any level are required to accelerate rehabilitation rates and build a stable social capital in Iraq . The inflow of investment from natural resources is still offset by negative growth in the marginal stock and low investment in capital stock. The difficulty of the financing equation is that such a situation has put the country in a difficult financing equation that drives the resort to financing from the international market under various forms required by legislation such as sovereign fund submersible. 4. In order to solve this difficult financing equation, the scale of Iraq's leverage or public debt capacity, which represents the ratio of public debt to GDP, should be continuously recognized as a measure of that leverage. The lesson is that a standard of debt sustainability That affects the health or safety of the country's economic growth, called the DSA-debt sustainability analysis and represents the ability to service debt and meet obligations without affecting the health and safety of economic growth or the need to reschedule debt or the accumulation of arrears that hinder growth Economic development. Maximum safety ceilings The measurement adopted by the international multilateral financial institutions in the DSA analysis indicates that when the debtor country retains NPV (the expected return on debt investment discounted at the interest rate equal to or greater than the debt cost), the ratios following which reflect the maximum ceilings of economic safety : the 60 percent public debt / GDP 150 percent public debt / exports of the country 's 250 percent public debt / revenues from the country 's foreign currency , and the annual debt grew by 3 percent of gross domestic product for Z The economy generator of economic growth and the surplus together. In conclusion, it can be said that Iraq is still at a safe level in its borrowing capacity and has a standard ratio of less than 60 percent of the ratio of debt to GDP. According to another ( IMF consultations in September 2017) The country is adopting a subprime sovereign fund that uses supplementary financing from the international financial market to align itself with the global construction market to raise the ratio of fixed capital formation to gross domestic product to 50 percent instead of 25 percent now in the coming years [/rtl] [rtl][You must be registered and logged in to see this link.] [/rtl] |
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