Home
Zebari: Iraq is considering issuing bonds worth five billion dollars
03/18/2015 17:25:00
Finance Minister Hoshiyar Zebari said on Wednesday that Iraq is considering the issuance of international bonds denominated in dollars for five years worth five billion dollars to help it plug in going forward and will soon begin to pay some dues foreign oil companies.
Zebari told Reuters: "For government bonds, we will start talks with Citibank and Deutsche Bank tomorrow," in reference to the two banks, which Fodthma Baghdad to advise on the deal.
"I think in borrowing through the issuance of government bonds worth five billion dollars sold outside Iraq."
And may issue bonds to be five billion dollars a big deal it is difficult for international investors absorbed all at once, especially in light of the lack of political and economic stability in Iraq.
Zebari did not elaborate on the release date or financial conditions.
Zebari said that his ministry has issued treasury bills for the year worth four trillion Iraqi dinars, equivalent to about $ 3.5 billion in the local market on behalf of the Ministry of Oil and perhaps additional authorizations issued a $ 1.5 billion and Lahr.
He added that Iraq is now has the necessary funds to pay dues to the international oil companies. "I think we will start reimbursing the international oil companies in the first of April."
The pressure drop in oil prices on public finances of Iraq. The government expects a budget deficit of $ 21 billion this year and increased its debt to companies that develop oil fields.
And works by Western companies, including Royal Dutch Shell, BP and Exxon Mobil in Iraq's southern fields under service includes a fixed fee to the dollar versus the additional quantities of crude produced decades.
Given the sharp drop in oil prices since last June, the amount of crude that Iraq needs to pay dues to companies almost doubled, which led to reduced government revenue at a time when the organization is fighting an Islamic state.
Zebari said "we have allocated $ 12 billion in going forward for the oil ministry, but they want more pay dues to the international oil companies in order to stimulate production.
"We turned to treasury bills on behalf of the Ministry of Oil to help them."
PUKmedia
[You must be registered and logged in to see this link.]
