600 Billion Pounds to Finance Investment Projects, The Value of Treasury Bonds in 2022

The Ministry of Finance has completed its issuance calendar for government securities and treasury bonds for the next year 2022, with a total value of 600 billion pounds for 4 auctions, with the aim of financing investment projects for the public sector, through funding available with the operating banks or with the individuals by opening accounts for these banks.

According to a statement by the Ministry, the calendar sets the date of the first auction on the tenth of January 2022 to offer treasury bonds worth 200 billion pounds for a period of five years, and the date of the second auction on eleventh of April 2022 to offer bonds worth 100 billion pounds for a period of 3 years.

The Ministry also set the date of the third auction on the seventh of November 2022 to offer bonds worth 200 billion pounds for two years, and the fourth auction on tenth of October 2022 to offer bonds worth 100 billion pounds for two years.

The Director of Public Revenues at the Ministry, Anas Ali, explained that treasury bonds are an executive tool for fiscal policy in the aspect of exceptional revenues within the internal public debt, as most countries use this tool in order to achieve the fiscal policy plan on the spending and revenue sides.

According to the Director, the Ministry aims through these issuances at a number of goals, the most important of which is financing investment spending for the public sector and securing an investment opportunity for the private and public banking sector to employ its deposits in low-risk investments that allow it to expand its deposit-accepting operations and thus enable the expansion of lending and financing for investment projects for the private sector.

These issuances also help in alleviating the deficit financing from the Central Bank of Syria, and thus mitigate the risks of expanding the monetary issuance and reducing inflation. Director Ali explained that the return on subscribing to these bonds for banks and individuals is through the interests that are granted semi-annually, the percentage of which is determined according to the result.  Each auction is based on the bids submitted in accordance with the terms of the issuance that will be announced in advance.

It is noteworthy that this package of issuance of government securities is the third in the history of the Ministry of Finance. In 2010, seven issues of government securities were conducted and in 2020, two issues of treasury bonds were implemented based on Decree 60 of 2007 regulating the issuance of government securities in Syria .