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Iraq raises $ 6 billion in international bonds, but it would cost dearly
Wednesday, 09 .2015
BAGHDAD (Reuters): banking sources said that the Iraqi government will start promotion campaign Thursday to international bonds being issued for the first time in nine years, as Baghdad seeks to finance the budget deficit, due to falling oil prices and the war against al-Islamic state 'Daash'.
Iraq is expected to pay a high price to borrow, where the yield 10.37% on the Iraqi dollar bonds due in 2028, while up in Iraq's neighboring countries to less than 2% according to private borrowing from the market data Atah.oaqbil bond offering, Iraq obtained a credit rating negative of my organization 'S & P' and'vic 'based in the United States, where They noted the existence of credit risk.
She said banking sources familiar with the offering bonds Reuters that Baghdad want to combine up to six billion dollars in a series of versions of dollar bonds, but the first version is expected to be much smaller.
Said Mrtbo versions, the banks' Citigroup 'and'jah.ba Morgan' Americans and Deutsche Bank arranged the German version will begin meetings with investors in Britain and the US Altdh.obhsp Bulletin 'City AMD' British Financial, the credit rating institutions dealing Iraqi bonds with a rating as 'junk bonds', the center of political risk experienced by Iraq.
In spite of these risks, it is expected to contribute to Baghdad put the largest oil producer in the Organization of the Petroleum Exporting Countries as the second (OPEC) to reassure buyers to entitlements, and the large oil fields in the south of the country was not exposed to fight directly, in addition to that Iraq adopts plan ambitious will continue for several years to increase its production of oil, according to experts.
Iraq is facing an economic crisis, as the government expects the fiscal deficit this year about $ 25 billion in budget worth about $ 100 billion, as a result of lower oil prices by more than 50% since the middle of last year 2014, in addition to the cost of the war against Daash who controls large areas north and west of the Iraqi economy Albulad.oiatmd in its annual budget on oil imports amounting to 90% of the country's financial revenue.
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Wednesday, 09 .2015
BAGHDAD (Reuters): banking sources said that the Iraqi government will start promotion campaign Thursday to international bonds being issued for the first time in nine years, as Baghdad seeks to finance the budget deficit, due to falling oil prices and the war against al-Islamic state 'Daash'.
Iraq is expected to pay a high price to borrow, where the yield 10.37% on the Iraqi dollar bonds due in 2028, while up in Iraq's neighboring countries to less than 2% according to private borrowing from the market data Atah.oaqbil bond offering, Iraq obtained a credit rating negative of my organization 'S & P' and'vic 'based in the United States, where They noted the existence of credit risk.
She said banking sources familiar with the offering bonds Reuters that Baghdad want to combine up to six billion dollars in a series of versions of dollar bonds, but the first version is expected to be much smaller.
Said Mrtbo versions, the banks' Citigroup 'and'jah.ba Morgan' Americans and Deutsche Bank arranged the German version will begin meetings with investors in Britain and the US Altdh.obhsp Bulletin 'City AMD' British Financial, the credit rating institutions dealing Iraqi bonds with a rating as 'junk bonds', the center of political risk experienced by Iraq.
In spite of these risks, it is expected to contribute to Baghdad put the largest oil producer in the Organization of the Petroleum Exporting Countries as the second (OPEC) to reassure buyers to entitlements, and the large oil fields in the south of the country was not exposed to fight directly, in addition to that Iraq adopts plan ambitious will continue for several years to increase its production of oil, according to experts.
Iraq is facing an economic crisis, as the government expects the fiscal deficit this year about $ 25 billion in budget worth about $ 100 billion, as a result of lower oil prices by more than 50% since the middle of last year 2014, in addition to the cost of the war against Daash who controls large areas north and west of the Iraqi economy Albulad.oiatmd in its annual budget on oil imports amounting to 90% of the country's financial revenue.
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