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Securities available to the public raise the credit rating of Iraq to facilitate external borrowing
Wednesday-29 Jul 2015
Baghdad
The government is seeking to move the money supply among citizens across the raised credit bonds, to provide a cash deal with a part of the fiscal budget deficit and cash squeeze, according to the Economic Adviser to the Prime Minister, while rated credit globally facilitate his external borrowing academics confirms that the move provides for Iraq. " and sale of bonds. "
The Central Bank, earlier this week, his intention bond offering for the benefit of the Ministry of Finance worth two billion dollars, and while noting that the bonds due and payable by the end of 2016, confirmed that it can be used as collateral for loans or facilities require collateral.
He says the appearance of Mohammed in connection with "the world", that "the main objective of putting those bonds is to fill part of the deficit in the public budget for the current year and to provide financial liquidity to curb the financial crisis that the government suffered in time," explaining that "those bonds citizens will be on a fixed exchange rate, and the interest rate is determined by the duration of the bond. "
He said the move aims to "move the money supply to the citizens."
The House of Representatives approved the current year's budget in January 29, worth $ 119 billion, and a deficit of up to $ 25 billion.
Economic Adviser to the Prime Minister said the next step after bond offering is "a select number of banks to act as mediator between the government and citizens."
For the first time after 2003, Iraq plans to put up bonds of this magnitude.
Maitham defect, academic and specialist in economic affairs said that "Iraq, after talks with a number of international banks and lending institutions for the purpose of finding financial resources, it is revealed that he would need guarantees, and here will be the Ministry of Finance bought those bonds and the dollar from the central", adding that it "represents the papers to ensure to the outside world in the case of Iraq could not abide by the terms of its loan repayment or any other reform conditions. " -[My Note: This is collateral in secured funds via the first bond offering, smart move ... ]
He says defect in the comments for "the world", that that process is done through the purchase of Ministry of Finance bonds in local currency to be paid at a later date to the bank, allowing Iraq to sell sovereign government bonds in the global market, compared to the amount of dollars that can contribute to filling part of the deficit budget.
This procedure enables entry to Iraq "Global Credit Portal, and thus give him credit rated a certain officially." -[My Note: The Bond offering is secured; this guarantees Iraq getting an international credit rating, what they've done here in essence is use cbi funds via national bonds to secure the international bond offer]
Known credit rating that estimate conducted by lending institutions to find out the validity or eligibility State wishing to obtain loans, which is the is studying its potential, and the extent of its credit on the loan and financial ability to repay, taking into account records of the state and its disposal in the past for the payment of its debts.
He added that "This is not surprising in light of the deterioration of oil revenues and not being able to seriously seek to find other financial resources, as well as the lack of seriousness of processors to the issue of corruption."
The budget law for 2015, the government authorized the issuance of sovereign government bonds by seven trillion dinars to cover the fiscal deficit.
The central bank announced earlier this week in a statement that it will launch futures delivery currency dollar bearer bonds on behalf of the Ministry of Finance from the second of next August to 31 of the same month, adding that "Asdarih will be four categories (2,500 to 10,000 and 50,000 and 100,000) to US $ and $ total of two billion dollars. "
The bank said it "will sell that amount in Iraqi dinars and the price of 1095 dinars per dollar and payable by the Ministry of Finance in December 31 2016, to be paid in dollars at maturity."
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Wednesday-29 Jul 2015
Baghdad
The government is seeking to move the money supply among citizens across the raised credit bonds, to provide a cash deal with a part of the fiscal budget deficit and cash squeeze, according to the Economic Adviser to the Prime Minister, while rated credit globally facilitate his external borrowing academics confirms that the move provides for Iraq. " and sale of bonds. "
The Central Bank, earlier this week, his intention bond offering for the benefit of the Ministry of Finance worth two billion dollars, and while noting that the bonds due and payable by the end of 2016, confirmed that it can be used as collateral for loans or facilities require collateral.
He says the appearance of Mohammed in connection with "the world", that "the main objective of putting those bonds is to fill part of the deficit in the public budget for the current year and to provide financial liquidity to curb the financial crisis that the government suffered in time," explaining that "those bonds citizens will be on a fixed exchange rate, and the interest rate is determined by the duration of the bond. "
He said the move aims to "move the money supply to the citizens."
The House of Representatives approved the current year's budget in January 29, worth $ 119 billion, and a deficit of up to $ 25 billion.
Economic Adviser to the Prime Minister said the next step after bond offering is "a select number of banks to act as mediator between the government and citizens."
For the first time after 2003, Iraq plans to put up bonds of this magnitude.
Maitham defect, academic and specialist in economic affairs said that "Iraq, after talks with a number of international banks and lending institutions for the purpose of finding financial resources, it is revealed that he would need guarantees, and here will be the Ministry of Finance bought those bonds and the dollar from the central", adding that it "represents the papers to ensure to the outside world in the case of Iraq could not abide by the terms of its loan repayment or any other reform conditions. " -[My Note: This is collateral in secured funds via the first bond offering, smart move ... ]
He says defect in the comments for "the world", that that process is done through the purchase of Ministry of Finance bonds in local currency to be paid at a later date to the bank, allowing Iraq to sell sovereign government bonds in the global market, compared to the amount of dollars that can contribute to filling part of the deficit budget.
This procedure enables entry to Iraq "Global Credit Portal, and thus give him credit rated a certain officially." -[My Note: The Bond offering is secured; this guarantees Iraq getting an international credit rating, what they've done here in essence is use cbi funds via national bonds to secure the international bond offer]
Known credit rating that estimate conducted by lending institutions to find out the validity or eligibility State wishing to obtain loans, which is the is studying its potential, and the extent of its credit on the loan and financial ability to repay, taking into account records of the state and its disposal in the past for the payment of its debts.
He added that "This is not surprising in light of the deterioration of oil revenues and not being able to seriously seek to find other financial resources, as well as the lack of seriousness of processors to the issue of corruption."
The budget law for 2015, the government authorized the issuance of sovereign government bonds by seven trillion dinars to cover the fiscal deficit.
The central bank announced earlier this week in a statement that it will launch futures delivery currency dollar bearer bonds on behalf of the Ministry of Finance from the second of next August to 31 of the same month, adding that "Asdarih will be four categories (2,500 to 10,000 and 50,000 and 100,000) to US $ and $ total of two billion dollars. "
The bank said it "will sell that amount in Iraqi dinars and the price of 1095 dinars per dollar and payable by the Ministry of Finance in December 31 2016, to be paid in dollars at maturity."
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