Budget Deficit Pushes Central Bank to Offer Treasury Bonds on Stock Exchange

The bonds will cover 600 billion Syrian pounds from more than 4 400 billion Syrian pounds in deficit, according to Iqtissad.

The Syrian regime’s Ministry of Finance announced its approval to trade treasury bonds issued in the second auction for 2022, starting from next Monday’s session in the Damascus Securities Exchange.

The Executive Director of the market said that this subscription is the first of its kind in Syria that allows government securities to trade in the stock market, considering that this makes it easier to liquidate without the need to wait until the end of the paper’s term and its maturity date.

According to the pro-regime Athr Press website, Dr. Abdul Razzaq Qassem explained that trading on treasury bonds would take place under the mechanisms and instructions stipulated in the system of trading rules adopted in the market, as the initial price of the bond is set at 100% of the nominal value, and the transactions of treasury bonds are conducted exclusively through brokers who are members of the market, and during the official trading days approved in the market, and the period between 10:30 and 13:00.

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Qassem considered that offering treasury bonds and bills for trading in the Damascus Stock Exchange is an important gesture in the right direction and contributes positively to many economic and development indicators without specifying the nature of these benefits.

The bonds that will be offered on the stock exchange, according to the date of their issuance, amount to 600 billion Syrian pounds, while the budget deficit, according to what was announced by Finance Minister Kenan Yaghi, is more than 4 400 billion Syrian pounds.

Yaghi explained that the rest of the deficit would be covered from external resources at a value of 500 billion Syrian pounds, and the rest would be covered by the Central Bank of Syria as credits taken from its reserve.

It should be noted that the director of the Damascus Securities Exchange did not clarify whether individuals can buy treasury bonds from the stock exchange since the law allows the ownership of these bonds only by institutions and companies only.

 

This article was edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

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