Economy Baghdad - IA - Nassar Al-Hajj Thursday, Advisor to the Prime Minister Mazhar Muhammad Saleh identified the importance of Injaz bonds, while clarifying the nature of government borrowings. Saleh told the Iraqi News Agency (INA):
“The annual general budget usually hedges during implementation against some slowdown in cash flows for temporary and emergency reasons,” indicating that
“on this basis, the budget is hedged by resorting to short-term borrowing by issuing annual treasury transfers.”
With a specific interest rate, commercial banks invest their money mostly in holding these sovereign bonds to ensure the sustainability of cash flows to the general budget. He added,
"Short-term government borrowings are called bridge loans and are practiced by the financial authorities in accordance with the budget law at all times and places," noting that
"the general budget policy today, in its investment aspect, is moving towards ensuring the availability of a stable financing lever that guarantees the continued implementation of the country's investment budget items from non stop". Saleh continued,
“The announced issuance of the (Injaz Bond) amounting to 1.5 trillion dinars targets the public’s savings,
especially those dormant balances that lie outside the banking system and outside the mechanisms of the national savings cycle,
which is consistent with encouraging the virtue of the public’s safe investment of its cash balances and with high-guarantee and high-yield sovereign debt instruments.”
At the same time, it facilitates the trading of these financial instruments (the completion bond),
buying and selling in the secondary financial markets, and
provides the bond holder with the ability to convert the debt instrument (the completion bond) into cash at all times when needed, with ease and high guarantee.” https://www.ina.iq/213372--.html
No comments:
Post a Comment