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Finance Minister: Iraq is seeking to obtain a sovereign rating
30/04/2015 04:21 |
BAGHDAD / Source News / .. Finance Minister Hoshyar Zebari, on Thursday, that his country isseeking a sovereign rating and continue with the credit rating agencies as it prepares to issue huge bonds worth five billion dollars needed to cover the budget caused by lower oil prices deficit.
Zebari said in an interview I followed Agency / Source News / "We started the process, banks are also seeking to help us in this direction."
Iraq has announced that it will issue bonds worth five billion dollars in the first issued in the international bond market nine years ago, in particular, and he desperately needed to liquidity as the government predicted that this year's deficit up to about 25 percent of the budget of 100 billion dollars, almost the size.
And obtain a sovereign rating from a major credit agency which Iraq currently lacks him may help persuade the international fund managers and international banks in underwriting bonds.
Zebari said that "Iraq is seeking to connect with two or three credit rating agencies, but he did not identify, discuss Iraq and bond issuance plan with City Bank and Deutsche Bank."
The process of obtaining the credit rating may be sensitive for Iraq as it will be forced to open its books to these institutions reveals revealed new information on public finances.
Zebari did not disclose the date on which it is expected to complete the process.
It is expected to attract Iraq's oil reserves huge -alta it did not reach the hands of Daash- buyers for this offering.
But many fund managers believe that Baghdad would face difficulty in the sale of five billion dollars in a short period even if the generous pricing.
In response to whether the number five billion to be very ambitious, Zebari said "We have a commitment in the budget to issue six billion, so this is the minimum this is our plan to cover the deficit, but there is no way to be issued in a single chip."
Iraq has an existing issue of dollar bonds maturing in 2028 and prompted a wave of panic selling late last year with the erosion of oil prices return on these bonds to rise to a record high of 10.49 percent from about 7.2 percent in September. But the yield has since tumbled to 8.04 percent.
In addition to the issuance of international bonds Iraq has taken or plans to take other financial measures, including the issuance of bonds in local currency to the banks and the imposition of taxes on some consumer goods and reduce public sector salaries Fifi, also asked the help of the IMF Ata.anthy Looking T.
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30/04/2015 04:21 |
BAGHDAD / Source News / .. Finance Minister Hoshyar Zebari, on Thursday, that his country isseeking a sovereign rating and continue with the credit rating agencies as it prepares to issue huge bonds worth five billion dollars needed to cover the budget caused by lower oil prices deficit.
Zebari said in an interview I followed Agency / Source News / "We started the process, banks are also seeking to help us in this direction."
Iraq has announced that it will issue bonds worth five billion dollars in the first issued in the international bond market nine years ago, in particular, and he desperately needed to liquidity as the government predicted that this year's deficit up to about 25 percent of the budget of 100 billion dollars, almost the size.
And obtain a sovereign rating from a major credit agency which Iraq currently lacks him may help persuade the international fund managers and international banks in underwriting bonds.
Zebari said that "Iraq is seeking to connect with two or three credit rating agencies, but he did not identify, discuss Iraq and bond issuance plan with City Bank and Deutsche Bank."
The process of obtaining the credit rating may be sensitive for Iraq as it will be forced to open its books to these institutions reveals revealed new information on public finances.
Zebari did not disclose the date on which it is expected to complete the process.
It is expected to attract Iraq's oil reserves huge -alta it did not reach the hands of Daash- buyers for this offering.
But many fund managers believe that Baghdad would face difficulty in the sale of five billion dollars in a short period even if the generous pricing.
In response to whether the number five billion to be very ambitious, Zebari said "We have a commitment in the budget to issue six billion, so this is the minimum this is our plan to cover the deficit, but there is no way to be issued in a single chip."
Iraq has an existing issue of dollar bonds maturing in 2028 and prompted a wave of panic selling late last year with the erosion of oil prices return on these bonds to rise to a record high of 10.49 percent from about 7.2 percent in September. But the yield has since tumbled to 8.04 percent.
In addition to the issuance of international bonds Iraq has taken or plans to take other financial measures, including the issuance of bonds in local currency to the banks and the imposition of taxes on some consumer goods and reduce public sector salaries Fifi, also asked the help of the IMF Ata.anthy Looking T.
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