***** Credit rating accelerates the implementation of strategic projects *****

3/12/2014 0:00

Attracting investments and gives additional confidence for businesses


BAGHDAD - Mustafa al-Hashemi

The importance of getting Iraq on the credit rating of the three rating agencies to clarify the outlook for the economy, especially in relation to investment.




This requires access to the credit rating of the country in general formally demand from international rating agencies of the three ( Moody's , Standard & Poor's , and Fitch ) to assess the current situation in Iraq and the expected outlook for the economy in the near future .

Vision of success

The degree classification for foreign investors vision or reading the real possibility of the success of their projects and the time spent re their capital and achieve profit as well as a roadmap to determine for investment as if the near-term Aoualemtost or run.

 But does not seem , in fact, and the existence of efforts official to move and go for credit rating , according to economic expert, Dr. Majid picture , which attributed to the reason for this lack of clarity of vision at the level of legislation, laws and economic conditions taking place in the country of unrest and instability at all levels .



Important things

But Suri confirmed the need to obtain a rating of the degree of international agencies because of the important things are looking for the foreign investor , especially that Iraq needs investment to make up the shortfall in terms of infrastructure .

He favored an economist reasons that prevent the government side from moving in this direction, the fact that getting a degree international credit rating requires a stable fully in the economic and political relations and financial relations between Iraq and the rest of the countries , along with the presence of financial and banking sector is managed professionally by the mentalities of administrative high-potential .

Good rating

He stressed that the picture of Iraq is classified in terms of the commitment to pay the foreign debt , whether for state companies or private traders classifies good but unspoken formally .

Reflect the degree of international rating conditions of the country and give perceptions of the economic right to the investing companies as well as being one of the most important factors of reform in the sector banking , and is rated the world's credit rating ladder consists of 4 grades are A , B, and C and D as well as variables that represent signal + or - and Petkrarat different .

Start negotiating

The experts stress the importance of Iraq to begin now to negotiate for the purpose Ranked credit because this issue is vital and contemporary and is useful for re- engineering the performance of the Iraqi banking sector and developed to accomplish its functions in the service of economic development to keep pace with progress in the rest of the Arab banks and international ones .

The economic expert d . Appearance of Mohammed Saleh said earlier in the (morning) : Classification of Iraq credit now , although he did not specify officially yet, it is at a temperature of B- returned him a good indication of the reason for optimism , stressing the possibility of rating the country credit through bonds sold in global markets because the presence of a credit rating , though low, is better than no rating basically .

Former classification

The responsibility to apply the credit rating of Iraq - according to experts - the responsibility of the Central Bank of Iraq , and Iraq had in the seventies and eighties of the last century credit rating high , but no one dares to disclose that degree at that time as being contrary to the laws and regulations of the former regime .

 Lies the need government action to raise this level to a degree better because it will contribute to attract investment and gives extra confidence to investors and foreign companies for the purpose of coming to Iraq and direct the reconstruction of infrastructure in view of its importance in the advancement of the country's economic at all levels .

noted that the credit rating is through religion year and the issuance of treasury transfers or government bonds, particularly in international markets, or those bonds that are sold outside of Iraq , as well as the proportion of the total sovereign assets to GDP and credit risk , and domestic and foreign investment and other economic indicators other.


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