Iraq plans to issue bonds worth $ 10 billion

Image of Reuters - Arabian Eye
July 7, 2015 10:33

Direct: The Iraqi government plans to issue local bonds worth five billion dollars, starting from the last quarter of this year, within the framework of the efforts of the government in Baghdad to ease the financial pressures caused by low Osaralinvt.

In addition to the issuance of local bonds Iraq intends to collect another five billion dollars from international bond issue this year, according to CNBC Arabiya.

He noted the former official at the Central Bank of Iraq, Qassem Saleh harmful, that the medium-bond maturities range between 12 and 18 months.



This version will help in the financing of the budget deficit, which will be open to local banks, and other institutions, and individual investors.

He stressed, "Qasim" version that provides an opportunity for investors who have the liquidity and cash Moktnzi primarily expected to be a good investment demand.

The bonds will be issued in US dollars in stages based on investor demand, and investors will choose between receipt of an asset at maturity in dollars or dinars, but at a better price than the market price.

And it imposes a sharp decline in oil prices since the beginning of the year and the war being waged against al-Iraq Daash severe pressure on Iraq's budget which is estimated at about $ 100 billion, a deficit of up to 25 billion Dolarhma year, according to government forecasts.

And it decreased foreign reserves at the Central Bank of Iraq to $ 66 billion at the end of 2014 from $ 78 billion at the end of 2013, according to the International Monetary Fund.

And confirms the Iraqi Prime Minister, Haider al-Abadi, the dinar "strongly supported .. and do not need to worry about the exchange rate against the dollar."

The IMF has agreed in early June to lend Iraq $ 833 million, while the World Bank will provide loans totaling $ 1.7 billion, according to the Iraqi Ministry of Finance's remarks.


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