Damascus-SANA
For the first time, the Ministry of Finance offers securities of the type of treasury bills and government bonds for trading in the Damascus Securities Exchange for subscription or sale to ordinary and legal persons such as banks, institutions and companies.
Dr. Abed Fadliah, head of the Securities and Markets Authority, said in a statement to SANA reporter that Law No. 60 of 2007 allows the Ministry of Finance to offer such securities when it needs more capital to be used in important veins in the economy, pointing out that the difference between bills and bonds is in the period of payment of their values. For those subscribed to by the Ministry of Finance, where the period of repayment of the bonds is less than a year and the period of repayment of bonds is more than one year and may reach 30 years.
Regarding the importance of offering these securities, Dr. Fadliah stated that the issuance of such bonds achieves three objectives: the first is monetary, which is to reduce the volume of free liquidity in the market in order to reduce or curb inflation, and the second is financial to incite and motivate investment if the subscribers’ funds are used to establish productive projects, and the third is economic and social by operating Stagnant funds and savings “if any”, which leads to the subscribers receiving profitable returns that are usually pumped into the market to move effective demand, which accelerates the production wheel and creates new job opportunities.
Dr. Fadliya pointed out that there is a specialized joint committee defined by the legislation in force, consisting of representatives of the Ministry of Finance, the Central Bank, the Syrian Securities and Financial Markets Authority and other related parties whose mission is to study the prevailing economic, financial, monetary and investment conditions and to set appropriate quantitative and qualitative controls for offering these securities to those wishing to subscribe for them in accordance with the general policy. for the state.
He said: The offering of these government securities, the nature of their value, the repayment period, the terms and the mechanism of subscription for them, will be announced on the first of next August, to be then offered for subscription on the eighth of the same month, explaining that there are several types of securities in addition to the above, such as certificates of deposit that It is usually issued by the Central Bank in addition to the shares of joint stock companies and the sukuk issued by Islamic banks.
Dr. Fadliah considered that offering treasury bonds and bills for trading in the Damascus Securities Exchange is an important gesture in the right direction and contributes positively to many economic and development indicators.
Alia decency
SANA Economic Bulletin
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