Economic reform efforts within Iraq prepares for the issuance of sovereign bonds

7/1/2017 0:00

BAGHDAD / Mustafa al-Hashemi

After the completion of the first step to ensure the sovereign loan, Iraq is to prepare for the issuance of sovereign bonds and sell them in the global financial markets, the threshold to achieve returns reduce the budget deficit and ensure the continued funding of the operating budget

According to the 2017 budget law recently passed, this fiscal deficit is covered from domestic borrowing (domestic treasury bonds and money orders) and external borrowing (by issuing sovereign bonds and international loans) and cash amounts retained in the Ministry of Finance account

Federal

In this regard, he described as an economic researcher Firas Amer ensure that the amount of bonds issued by the Iraqi United States would enhance the chances of achieving the desired returns from issuing international bonds Iraq.

Amer said in an interview for the "morning" that this step enhances the feasibility and supported in the global securities market, especially as the credit rating of the country is known to all nations wishing to buy Iraqi bonds being, this Convention has become more assured.

A statement by the US Embassy that "the loan guarantee confirms the enduring commitment of the United States of America to the people and Government of Iraq in their battle against the" Daesh, "pointing out that he" has been designed to ensure the loan to support Iraq financially in his quest Gahd to complete the liberation of Iraq from "Daesh" and continue the important economic reforms In order to restore growth and prosperity. "

And that "the signing, which took place today is the first step to put the finishing touches to ensure the sovereign loan," adding that "the sovereign loan guarantee provides additional support to Iraq's strategic partner for the US is stable and self-reliant."

"The second step in the formal exchange of diplomatic memoranda between the United States of America and the Government of Iraq, under which the US government to ensure the payment of the amount borrowed and the interest of the issuance of sovereign financial support by Iraq, including a total of billion dollars," expected "to proceed with the second step of the process through the Government the coming weeks. "

She stressed the Chargé d'affaires of the Embassy of the United States of America, Stephanie Williams, during the signing ceremony, the solidarity of the people and the Government of the United States with the people and Government of Iraq, saying: "The funds will help the government on food, water, shelter and medical care to the most vulnerable Iraqis to provide and allow them to benefit from government services such as education and health care that will enable them to build a promising future brighter. "

She stressed that "the loan guarantee agreement in this day shows that Iraq continues to progress towards achieving its objectives in the economic reform for the benefit of the Iraqi people, under the strategic framework agreement.

According to the embassy statement, "The US Embassy is working closely with the Government of Iraq to ensure that the current economic challenges do not affect the ongoing campaign to defeat the" Daesh. "

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