Economy News – Baghdad
An official source confirmed that the construction bonds offered by the Central Bank in favor of the Ministry of Finance will support the deficit in the 2021 budget.
On September 26, 2021, the Central Bank decided to offer bonds in two categories: “a bond of a category of 500 thousand dinars with an annual interest rate of 6% and for a period of two years, and a bond of a category of one million dinars with an annual interest of 7% for a period of 4 years.”
According to the 2021 budget, the Ministry of Finance will issue national bonds worth 8.5 trillion dinars to finance the budget deficit.
The source, who preferred not to be named, told “Economy News”, “The bonds launched by the Central Bank are worth a trillion dinars, and the bank will deduct them for the benefit of the Ministry of Finance.”
He added that the interest on the offered bonds is very excellent, and will contribute to the development of the local financial market, noting that the Ministry of Finance will use these funds to support the deficit and may go to support the operating budget or the investment budget.
And he indicated that the problem that stands in the way is the difficult timing in which it was presented, which is turning the current government into a caretaker government and thus these bonds may fail, adding that many owners of money will invest in these bonds.
He pointed out that in the event of the success of these bonds, bonds worth another trillion dinars will be issued.