********** Ebadi economic adviser: Iraq postpone an international bond offering of two billion dollars until 2017

History of edits:: 2016/9/30 8:18

{Baghdad} Euphrates News appearance of Mohammed Saleh said, the economic adviser to Prime Minister Haider al-Abadi, "Iraq is likely to postpone the sale of bonds two billion dollars in global markets until early 2017 at least.

Saleh said in a press meeting, seen by the agency {Euphrates News}, "I think we Snerjih {version}," saying that "we should see the situation in the oil market, - If improvement we can put it off a little bit and that has seen oil market deteriorate further, we will have to borrow ".

Saleh said, "It is expected to improve the economic situation of Iraq after that process and then be able to reduce military spending allocations or directed to the rebuilding of war-damaged areas.



And between, "we, we are shifting from a war budget to the budget of peace," Mthecna that this will improve the credit rating of Iraq to B + for at least the next six months of B- and is now seriously cut the cost of borrowing. "

The prime minister noted adviser, said that "military spending in the budget for 2017 will remain at the same level this year, but has been reclassified in the financial year according to changing needs."

He noted that "Iraq agreed in principle {} last month on loan for three years worth of three billion dollars from the World Bank to support Baghdad's budget, this will be the first loan installment of supplementary funding for the agreement with the IMF."

He added that, the details of the conditions to support public financial institutions and pensions in Iraq are not yet clear, but the first tranche will be disbursed in December.

He continued, "The period of repayment of the loan amounting to 16 years with a grace of three years and the benefit of a period of about two percent."

And it reached OPEC, at its meeting Wednesday in Algeria to agree to freeze oil production, which reflected positively on prices.

Iraq has sought over the past period to the convergence of views between Iran and Saudi Arabia, to support prices.

It is noteworthy that, the finance minister, Hoshyar Zebari, said on the third of June, that Iraq expects to sell international bonds worth two billion dollars in the last quarter of this year, when the international aid begins to flow, it will help to reduce the cost of borrowing on Baghdad.

Iraq has been seeking international support after shrinking revenues due to the oil price collapse two years ago, where the government relies on oil for 95 percent of their income.

The last time selling the Iraq international debt instruments in 2006 when he issued bonds by about $ 2.7 billion for the year 2028 until the interest rate of 5.8 percent.



She and Kalta Moody's and Fitch Ratings, last May, Iraq is an agreement with the International Monetary Fund and a positive side also gave the credit rating Fitch B- Iraqi credit long Alogel.anthy

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