50 billion dinars, the total amount for the current year Asdaria

7/5/2014 0:00

Finance announces its plan to issue treasury transfers

BAGHDAD - Mustafa al-Hashemi

Announced the Public Debt Department in the Ministry of Finance plans to issue treasury transfers to Ajal annual and semi-annual organized through ten auctions, each worth 5 billion dinars, the total amount to be Asdaria 50 billion dinars in 2014.

Government funding

According to the Public Debt Law , which authorized the Ministry of Finance issued remittances Treasury guaranteed by the government , the Central Bank of Iraq, as an agent financially to the Ministry of Finance, the Department of auctions of treasury transfers on behalf of the ministry, which will, according to the determinants of annual budget law by issuing transfers treasury for the purposes of government funding.

Temporary disability

According to the economic expert, Dr. appearance of Mohammed Saleh, who said in a statement ( morning) : The treasury transfers short-term and expires at the end of the year which comes to finance the deficit of my time.

Between Saleh, said that the treasury transfers back to the Ministry of Finance sold at an auction held by and supervised by the Central Bank for this purpose, explaining The treasury transfers are handled internally ( within Iraq ) which is a government-issued bonds and term ranging between six months and full year.

He explained that the treasury transfers a leaf does not bear interest but are sold at a discount given on the nominal value and the government gives them the benefit of cash is relatively low compared to the prevailing interest rate on bank loans because of the severity of the liquidity of these cases stemming from the possibility deducted before the date of maturity at commercial banks.

Participants in the auction

He noted that the participants in this auction as a fund retirement government departments or the Ministry of Labor.

He also called for government institutions, non-banking financial such as insurance companies and others to participate in the auction of treasury transfers to contribute to the achievement of approaching more than selling Asdaria fully to beneficiaries, and is likely to be a reason not to sell Asdaria entirely to the limited lending to banks,

the government requires the entry of those financial institutions in these auctions to mainstream benefits to government bodies beneficiary of retirement as a circle or circle of social security.

He said Iraq , according to the Paris Club agreement , he sold government bonds once was desirable for the acquisition and purchase of the world to the fact that the proportion of their usefulness was at the time, 8 percent, and their very suitable, stressing that the turnout it was because of the reputation of Iraq in terms of the obligation to pay and fulfill external debt as well as prices interest.

Plan Released

The plan includes the issuance of treasury transfers for the current year and issued by the Public Debt Department in the Ministry of Finance set up a 10 auctions, including five annual auctions and 5 Other semi-annual total of 50 billion dinars for 182 days and the other for 364 days.

He was the first semi-annual auction of 182 days may be held on April 21 last to be the maturity date in October 21 next.

It is scheduled to hold another auction for 364 days in the twenty-fifth of August to be the due date in the same month in 2015.

It is worth mentioning that the Ministry of Finance approved on April 21, last made ​​a public auction Auction semi-annual sale transfers treasury for 182 days and $500 billion Danaroukd sold 343 billion and 0.850 million dinars and the highest price Items for Auctions competitive 7 percent and the average yield competitive 5.10 percent, The number of participants was given 3 points, won the bid one bank in addition to the pension and welfare service minors.