The government received a draft sovereign wealth fund law
BAGHDAD – morning
Handed over to the economic and investment commission parliamentary project sovereign wealth fund law to the government because of its importance in avoiding any emergency economic crisis.
A member of the committee MP proof Almamori “morning”: that the Commission recognized the draft law to the government with all the details of the founded and over its importance to the country if passed. He said the committee met with specialists and international companies in order to contribute to the fund, which manage money well established, warning that if Iraq possessed such a fund because over the current economic crisis.
He predicted Almamori get heated arguments and obstacles will face the law, but stressed the pursuit Committee to approval as soon as possible, calling on the government to earmark funds to set up the fund after the adoption of law, similar to other countries.
Known sovereign wealth fund that is owned by the state and consists of assets such as land and stocks, bonds and devices other investment, the Fund represents the entity that manages the surplus money the state in order to invest.
sovereign funds are not a new phenomenon, but some dating back to 1953 but began excessively active recently acquired within the financial sector alone stakes in giant institutions such as Morgan Stanley and Bear Stearns, Merrill Lynch and Citigroup Sunset and “UBS”.
He noted economists that the oil revenue is the main source biggest sovereign investment funds in the world of stocks, reminding that in conjunction with the rise in oil prices over the previous year and the increase in imports producing countries ores increased the assets of these funds, as is foreign cash reserves source also essential.
Most experts believe that the emergence of these funds and global role a positive sign in the world of financial markets, for example, was quick these funds to pump money into the structure of the US economy as most investors from the US market have fled because of fears associated with the likelihood of that economy to recession and deflation .
However, some point to the existence of negative aspects in the work of those private funds in terms of lack of transparency in their work as the most do not disclose the size or activity or returns of its investments and distribution, and therefore these secret let down in the funds Activity shadow on the motives of investment options, some countries show concern about the prospect of a royal states for the funds to exercise political influence on the companies that it acquires and it stuck joints where economic decision.