Damascus-Sana
The Director of the Governmental Securities Unit at the Ministry of Finance Anas Ali said that the step of issuing government securities will have positive repercussions represented in providing a non-inflationary financing mechanism that supports the process of economic growth and increasing domestic product, which helps to attract foreign capitals for investment in addition to improving the efficiency of public debt management and reducing fluctuations Public spending resulting from the state exercising its financial and economic activities.
Ali explained in a statement to SANA Economic Bulletin that the treasury bonds are directed at the current stage for public and private banks in Syria and in the future, according to the law, these bonds can be directed to insurance companies and individuals through their bank accounts, and that the Central Bank of Syria can enter among qualified bidders, indicating that the decision to direct the subscription to Treasury bonds are for banks only because they hold the largest share of liquidity in the market.
On the mechanism of subscription to treasury bonds, Ali stated that public and private banks wishing to participate in the auction must pay the value of the bonds in a bank account with the Central Bank of Syria, provided that the value of the combined bank offers combined does not exceed 30 percent of the total value of treasury bonds, which amount to 150 billion Syrian pounds. The value of the single treasury bond is limited to 2 million Syrian pounds, noting that there will be four bidders winning the auction according to the executive instructions of Decree 60 of 2007.
On the possibility of placing treasury bonds in circulation, he explained that trading of bonds on the Damascus Securities Exchange can take place after taking the approval of the Governmental Securities Management Committee, pointing out that any bank can sell the bonds in coordination with the Central Bank of Syria by trading them with other banks or with the companies listed in Damascus Stock Exchange.
He stressed that government securities are a factor of strength because they come at the stage of launching the production process and the return of industrial establishments to work. They curb inflation and add a new tool to government financing channels that contribute to increasing confidence in economic efficiency and employing bank funds with the government at a low risk rate which leads to diversification of the investment portfolio. Banking.
It is noteworthy that the Ministry of Finance announced through the government securities unit an auction to subscribe to treasury bonds with a total value of 150 billion Syrian pounds and a two-year term.
Wasim Adawi
SANA Economic Bulletin
