View Full Version : A sovereign bond issue to support the housing sector

Hue Mi
09-17-2014, 07:26 PM
A sovereign bond issue to support the housing sector (http://www.imn.iq/news/view.50682/)


16/09/2014 08: 11

Iraq has high avoid spilling over into the international market and sovereign bonds are sold in the global financial markets to finance the deficit, but at the same time borrowing domestically through selling Treasury remittances of the Ministry of finance to financial and banking institutions, due to the lack of a current account deficit of the balance of payments.

In this regard, said Economist Dr. Mohammad Saleh appearance that deficit financing is from local sources first and then spilling over into global markets, adding speaking for (morning) that borrowing from the local market mechanisms easier as well as simplified mechanisms and possible control of the soft costs.

But the economy generally does not prevent opening to the world if something from surpluses in the balance of payments and a desire to lose for the State if there is a failure, adding that the current account of the balance of payments is not suffering a deficit now that it is under the door of the public debt. the States with public debt growth of GDP if the growth rate and interest higher than the economic growth, this is called the debt burden for the world religion The result should be between 50 to 60 percent as accumulation.

He continued that the borrowing is to revitalize the economy through development projects that foster cross-borrowing for Iraq is activated strongly where the borrowing ratio must be locally greater, indicating the importance of the State bonds to reconstruction and development and not merely selling money orders cashier.

He called for borrowing from the bond should be higher and for a long 5 years or more as this bond can be sold in Iraq market for securities to rate The real interest and knowledge of the direction of interest rates and the benefits of the market in terms of price.

This bond would be excellent leverage in recruiting high liquidity in Iraq and invest the firmness rather than by their owners to purchase property abroad or investing there can be such a national title superior competitive support to housing and the right to the holder of the bond nemesis Iraq market for securities.

He noted that there is nothing wrong with the State to launch such a bond where it is possible to mortgage banks in the event of the holder's desire to borrow them as sovereign assets and low risk and can stimulate the financial market because he supported property rights.

Saleh noted that the Finance Ministry lacked the financial and market makers are merely allocate Treasury blocking a deficit budget temporarily while experts manage the process and who can be found through cooperation with the World Bank in this area.
Hits 180