********* Iraq is serious about its financial obligations

11/27/2014 0:00

Despite the drop in oil prices
BAGHDAD - Farah pumice


After the repercussions of the global decline in oil prices, which negatively affected the country's revenues, and ongoing calls to follow the policy of austerity, Iraq confirmed its commitment to pay its debts to international creditors.


And Iraq's debt is treasury bonds worth more than two and a half billion dollars, and most of its obligations to foreign private sector, according to the Paris Club agreement, as it has received considerable acceptance was to extinguish the 80 percent discount in exchange for the bonds, according to the club Terms repaid over 20 years worth of interest (5,8 ) percent, has been met with popular high and acceptability in the global markets, especially as it is sold in the secondary market value of more than $ 90.


He spoke of the "morning" in this regard, Dr. appearance of Mohammed Saleh, said: "Iraq is financially capable to pay sovereign debt is serious about its international obligations."


He is not affected by Iraq's obligations down oil prices recently in global markets, especially as the government has given high priority to the payment of the debt owed, as spotted the amounts payable with operational budget spent in (1/12) during the current year 2014, and to pay these payments every six months in one of the international banks in London.

Warnings

On a related agency "Fitch" credit rating warned of the possibility of reducing the sovereign credit rating of a number of oil-exporting countries on the reality of the continuing decline in oil prices, while that Iraq does not have a formally assigned A- after undergoing former Chapter VII.


And each institution of credit rating agencies ladder own rating, which is similar to a large some of these institutions, with some marginal differences among them, and indicate credit ratings to the institutions of the international rating, "S & P" and "Fitch" and "Moody's", are combinations of letters A through D.

Credit rating

And Saleh stressed in this regard need to be Iraq's sovereign credit rating even if it is low, because it helps to improve the business environment in a positive way over investors' confidence of the Iraqi economy and the establishment of business on Ardah.oadav that "the credit rating protects against the imposition of" bonuses risk "(Risk Premium) on lending from international markets, arguing that is the guarantor of the economy and the risks, calling for the need to work in the coming period on the credit rating of Iraq.


Iraq is classified informally credit for "AAA" by observers specialists in this regard, and is a natural rated and put credit reassuring, he goes out to the ability and willingness of the central government of the state to respect the obligations to lenders from private sources (investors or private credit institutions).




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