Securities available to the public raise the credit rating of Iraq to facilitate external borrowing

Securities available to the public raise the credit rating of Iraq to facilitate external borrowing



7/30/15

Baghdad

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 financial budget and cash crisis experienced by the deficit, according to the Economic Adviser to the Prime Minister, while rated credit globally academics confirms that the move provides for Iraq. " facilitates his external borrowing and the sale of bonds. "

He announced the central bank, earlier this week, his intention to put up bonds 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.

says the appearance of Mohammed in connection with "the world", that "the main objective of putting those bonds lies in the dam part of the deficit in the public budget for the current year and to provide financial liquidity to limit the financial crisis that the government suffered in time," explaining that "those bonds will go the citizens 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 dollars.

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 bonds put on this scale.

Maytham 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 the Ministry of Finance will purchase those bonds and the dollar from the central ", adding that it" represents papers guarantee to the outside world in the case of Iraq could not abide the terms of repayment loans or any other reform conditions. "

says defect in the comments for "the world", said 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 can contribute to filling part of the budget deficit.

This procedure allows Iraq enter the "Global Credit Portal, and thus give him a rated credit certain officially."

known credit rating that estimate conducted by lending to know the validity or eligibility State wishing to obtain loans institutions, namely the The study 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 sovereign government bonds issuance 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 Finance starting from the second of next August to 31 of the same month, adding that "Asdarih will be four categories (in 2500 and 10000 and 50000 and 100000) US dollars and the total amount of two billion dollars."

The bank said it "will sell that amount in Iraqi dinars and the price of 1095 dinars per dollars and payable by the Ministry of Finance in December 31 2016, to be paid in dollars at maturity. "


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He announced the central bank, earlier this week, his intention to put up bonds 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.

says the appearance of Mohammed in connection with "the world", that "the main objective of putting those bonds lies in the dam part of the deficit in the public budget for the current year and to provide financial liquidity to limit the financial crisis that the government suffered in time," explaining that "those bonds will go the citizens 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."




This procedure allows Iraq enter the "Global Credit Portal, and thus give him a rated credit certain officially."

known credit rating that estimate conducted by lending to know the validity or eligibility State wishing to obtain loans institutions, namely the The study 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.