Iraq is to issue international bonds by five billion dollars
Wednesday, March 18, 2015
Iraqi Finance Minister, Hoshyar Zebari, said on Wednesday that his country is considering the issuance denominated international bonds in dollars for a five-year $ 5 billion, to help bridge the budget deficit, noting that the light that will be paid some dues foreign oil companies soon.
The news agency 'Reuters' about Iraqi official, that the Iraqi government will begin talks with Citibank and Deutsche Bank tomorrow, in reference to the two banks, which Fodthma Baghdad to advise on the deal.
He added: 'Think about borrowing through the issuance of government bonds worth $ 5 billion sold out of Iraq'.
Iraq had decided, last week, issuing treasury bonds worth 12 billion dollars, to pay the accumulated dues to foreign oil companies operating in the country, which is expected to reach $ 27 billion at the end of this year.
Experts said that the bond issue five billion dollars, may be 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, while the Iraqi official did not elaborate on the release date or financial conditions.
The official pointed out that his ministry has issued treasury bills for the year worth four trillion Iraqi dinars, equivalent to about $ 3.5 billion, in the domestic market on behalf of the Ministry of Oil, and that it may issue additional permits worth $ 1.5 billion.
He added that Iraq is now has the necessary funds to pay dues to the international oil companies, and added: 'I think we're going to start to pay dues of international oil companies in the first of April / May.' The pressure drop in oil prices on public finances of Iraq, and the government expects a budget deficit of $ 21 billion this year, and increased debt for 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 contracts in dollars, in exchange for the additional quantities of crude produced.
Given the sharp drop in oil prices since June last more than 5% of its value and the loss, the raw amounts needed by Iraq to repay companies almost doubled, which led to the reduction of government revenue at a time when fighting organization of the Islamic state, (Daash) .
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.'
The total investment by international oil companies in Iraq has reached $ 17 billion in 2011 and 2012, the government paid them nearly ten billion over the amounts of oil, and thus the total investments throughout the period of 6 years from 2011 to 2016 about $ 147 billion.
Iraq relies on oil imports to finance 95% of the budget, the country produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels per day.
[You must be registered and logged in to see this link.]
Wednesday, March 18, 2015
Iraqi Finance Minister, Hoshyar Zebari, said on Wednesday that his country is considering the issuance denominated international bonds in dollars for a five-year $ 5 billion, to help bridge the budget deficit, noting that the light that will be paid some dues foreign oil companies soon.
The news agency 'Reuters' about Iraqi official, that the Iraqi government will begin talks with Citibank and Deutsche Bank tomorrow, in reference to the two banks, which Fodthma Baghdad to advise on the deal.
He added: 'Think about borrowing through the issuance of government bonds worth $ 5 billion sold out of Iraq'.
Iraq had decided, last week, issuing treasury bonds worth 12 billion dollars, to pay the accumulated dues to foreign oil companies operating in the country, which is expected to reach $ 27 billion at the end of this year.
Experts said that the bond issue five billion dollars, may be 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, while the Iraqi official did not elaborate on the release date or financial conditions.
The official pointed out that his ministry has issued treasury bills for the year worth four trillion Iraqi dinars, equivalent to about $ 3.5 billion, in the domestic market on behalf of the Ministry of Oil, and that it may issue additional permits worth $ 1.5 billion.
He added that Iraq is now has the necessary funds to pay dues to the international oil companies, and added: 'I think we're going to start to pay dues of international oil companies in the first of April / May.' The pressure drop in oil prices on public finances of Iraq, and the government expects a budget deficit of $ 21 billion this year, and increased debt for 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 contracts in dollars, in exchange for the additional quantities of crude produced.
Given the sharp drop in oil prices since June last more than 5% of its value and the loss, the raw amounts needed by Iraq to repay companies almost doubled, which led to the reduction of government revenue at a time when fighting organization of the Islamic state, (Daash) .
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.'
The total investment by international oil companies in Iraq has reached $ 17 billion in 2011 and 2012, the government paid them nearly ten billion over the amounts of oil, and thus the total investments throughout the period of 6 years from 2011 to 2016 about $ 147 billion.
Iraq relies on oil imports to finance 95% of the budget, the country produces about 2.5 million barrels per day, with expectations to increase production to 4 million barrels per day.
[You must be registered and logged in to see this link.]