************** To get the sovereign rating supports the issuance of treasury bonds
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************** To get the sovereign rating supports the issuance of treasury bonds
Admin Sun May 03, 2015 7:58 am
5/3/2015 0:00
Declared one of the institutions after four months of receiving a government request
BAGHDAD Mustafa al-Hashemi
It enhances the presence of any country's credit rating in the world to get the funding they want through local or foreign markets, as well as he (credit rating) reduces the cost of borrowing when the state needed to decode the financial external debt Achtnaqatha.
And it demonstrated the need for Iraq to speed up winning this category of the three global agencies after Tdharrh of lower world oil prices and their impact on the general budget.
In this regard, Prime Minister Dr. economic adviser said. The appearance of Mohammed Saleh: that Iraq lacks the sovereign credit rating but bonds issued by to extinguish the Paris Club debt rated close to those countries that have such a rating awarded Iraq.
He said in a statement the "morning" that interest and discount on Iraq raised the bond price earlier approaching the price of some countries that have rated sovereign, pointing out that the classification of Iraq's credit, although he did not officially yet determined, Vhually probably at a temperature -B returned him a good indication and a cause for optimism, saying: This is not an official position, but set the intensity of the appetite for bonds raised by the Iraqi accordance with the Paris Club and sold in global markets, amounting to $ 2.7 billion at an annual fixed interest rate of 5.8 percent.
He stressed that the existence of a sovereign credit rating on the bonds, whatever the degree of interest and reduces the discount in the event has been put up without support credit rating will be a high degree of risk and that the discount rate will be higher.
The credit rating agencies of the three, the Standard & Poor's, and Moody's and Fitch, in general risks related to the issuance of debt securities, whether companies or governments to assess and prepare the source's ability to meet the payment of debt interest and premiums resulting from the most important indicator of creditworthiness upon which to build classifications by these agencies .
He expected to be issued in favor of the credit rating of Iraq during the four-month period of naming one of the agencies and ask them to do the job officially by the government.
The Finance Minister Hoshyar Zebari said that Iraq was seeking sovereign rating and continue with the credit rating agencies in the ministry is preparing to issue bonds worth five billion dollars needed to cover the budget deficit of 25 percent of the size of the budget in 2015, amounting to about $ 100 billion.
He said Zebari told Reuters: "We started the process. Banks also seek to help us in this direction." Zebari did not disclose the date on which it is expected to complete the process.
Iraq had announced his intention to issue bonds worth five billion dollars in the first issued in the international bond market nine years ago and is in dire need of liquidity, Observers believe that Iraq's oil reserves and huge enjoys a good reputation among countries in the payment of its debts and the implementation of financial obligations able to attract buyers to this bonds.
According to Reuters, the Iraq issue exists of dollar bonds maturing in 2028 and prompted a wave of panic selling late last year with the erosion of oil prices, the yield on these bonds to rise to a record high of 10.49 percent from about 7.2 percent in September. But the yield has since tumbled to 8.04 percent.
http://www.alsabaah.iq/ArticleShow.aspx?ID=92187
Declared one of the institutions after four months of receiving a government request
BAGHDAD Mustafa al-Hashemi
It enhances the presence of any country's credit rating in the world to get the funding they want through local or foreign markets, as well as he (credit rating) reduces the cost of borrowing when the state needed to decode the financial external debt Achtnaqatha.
And it demonstrated the need for Iraq to speed up winning this category of the three global agencies after Tdharrh of lower world oil prices and their impact on the general budget.
In this regard, Prime Minister Dr. economic adviser said. The appearance of Mohammed Saleh: that Iraq lacks the sovereign credit rating but bonds issued by to extinguish the Paris Club debt rated close to those countries that have such a rating awarded Iraq.
He said in a statement the "morning" that interest and discount on Iraq raised the bond price earlier approaching the price of some countries that have rated sovereign, pointing out that the classification of Iraq's credit, although he did not officially yet determined, Vhually probably at a temperature -B returned him a good indication and a cause for optimism, saying: This is not an official position, but set the intensity of the appetite for bonds raised by the Iraqi accordance with the Paris Club and sold in global markets, amounting to $ 2.7 billion at an annual fixed interest rate of 5.8 percent.
He stressed that the existence of a sovereign credit rating on the bonds, whatever the degree of interest and reduces the discount in the event has been put up without support credit rating will be a high degree of risk and that the discount rate will be higher.
The credit rating agencies of the three, the Standard & Poor's, and Moody's and Fitch, in general risks related to the issuance of debt securities, whether companies or governments to assess and prepare the source's ability to meet the payment of debt interest and premiums resulting from the most important indicator of creditworthiness upon which to build classifications by these agencies .
He expected to be issued in favor of the credit rating of Iraq during the four-month period of naming one of the agencies and ask them to do the job officially by the government.
The Finance Minister Hoshyar Zebari said that Iraq was seeking sovereign rating and continue with the credit rating agencies in the ministry is preparing to issue bonds worth five billion dollars needed to cover the budget deficit of 25 percent of the size of the budget in 2015, amounting to about $ 100 billion.
He said Zebari told Reuters: "We started the process. Banks also seek to help us in this direction." Zebari did not disclose the date on which it is expected to complete the process.
Iraq had announced his intention to issue bonds worth five billion dollars in the first issued in the international bond market nine years ago and is in dire need of liquidity, Observers believe that Iraq's oil reserves and huge enjoys a good reputation among countries in the payment of its debts and the implementation of financial obligations able to attract buyers to this bonds.
According to Reuters, the Iraq issue exists of dollar bonds maturing in 2028 and prompted a wave of panic selling late last year with the erosion of oil prices, the yield on these bonds to rise to a record high of 10.49 percent from about 7.2 percent in September. But the yield has since tumbled to 8.04 percent.
http://www.alsabaah.iq/ArticleShow.aspx?ID=92187
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