INTERVIEW-Iraq To Issue Intl Bonds In August !

[DinarThug]

CNN. Broadcasting Bonds - James Bonds !

 

 

 

(by walkingstick)

Jun 30 2015

INTERVIEW-Iraq to issue intl bonds in August



Iraq's budget deficit has risen to around 12% of GDP, said a central bank official.
The Iraqi government is planning to issue a total of USD 11 billion in domestic and international bonds in the next two months to cover the state budget deficit, the acting central bank governor said.

Ali Al-Allaq told TR Zawya that the government would issue around USD 5 billion in domestic bonds next month and around USD 6 billion in international bonds by the middle of August. He said the government has started talks with potential investors in Turkey for the five-year international bonds.

"The domestic bonds will be repaid to the public in one year after deducting a specific rate that is close in value to the interest rate," said Al-Allaq, without elaborating on interest rates.

The central bank also plans to repurchase government bonds as parts of wider efforts to provide financial liquidity, maintain price stability and support the economy, Al Allaq said. He said the state has allocated IQD 1 trillion over the next five years to support small and medium enterprises.

The sharp drop in crude prices has hit the revenues of the oil producing country. Spending in the current budget stands at around IQD 125 trillion, and the deficit has risen to 12% of gross domestic product, the official said.

Iraqi's Finance Minister Hoshyar Zebari previously told Reuters that the government has started discussions with Citibank and Deutsche Bank for the international bonds issue, but declined to say what maturity and interest rates were being negotiated.

He said the ministry was looking at various methods to fund the budget deficit, including borrowing from state banks and converting some Iraqi bank assets held with the central bank into bonds.

The Economist Intelligence Unit (EIU) said in a June report that despite rising crude production, weaker oil prices would result in an annual average fiscal deficit of 6.9% of GDP in 2015-16, but it expected public finances to return to surplus in 2018.

The Iraqi government has reached an agreement with the International Monetary Fund for a USD 833-million loan program to help Iraq cope with the drop in oil prices as it increases spending on security to combat the threat of the Islamic State militant group, which now controls about one-third of the country.

Al-Allaq said that inflation in the country remains at less than 2% and that the net flow of U.S. dollars into the central bank has also not been affected, he added.

"At the daily auction of the central bank, we sell about USD 150 million, which is more than the USD 75 million [prescribed] in the budget law," said the central bank official. "Foreign reserves currently stand at USD 68 billion, while the dinar monetary supply is IQD 40 trillion."

The central bank has maintained the Iraqi dinar peg to the U.S. dollar through daily currency auctions.

The EIU said that the market rate of the dinar would continue to drift above the central bank auction rate so long as the size of the auctions is restricted. "The CBI could also come under pressure to weaken the dinar to help to ease the fiscal deficit," the report said.

https://www.zawya.com/story/INTERVIEWIraq_to_issue_intl_bonds_in_August-ZAWYA20150630054835/

[k98nights]

"The CBI could also come under pressure to weaken the dinar to help to ease the fiscal deficit," the report said.

How the hell could weakening the Dinar help anything? It's already worth less than toilet paper!

[eburt]

Thanks but how does this help us if they are not gone to RV the currency

[pocono]

Who is Ali Al Allaq and when did he become 'Acting Governor of the CBI' ?

[pocono]

Apparently Ali Mohsen Ismael {listed as CBI Governor on the Cbi site} and Ali Al Allaq are one and the same as their pics are identical.

[Freedomrules]

Bonds are debt!  

[SnowGlobe7]

[Officiallytook]

Hmm...I like the highlighted material.

[Officiallytook]

Wait how could I ... No ... Look...

"The domestic bonds will be repaid to the public in one year (after deducting a specific rate) that is close in value to the (interest rate)," said Al-Allaq, (without elaborating on interest rates)."

You guys see that...

Looks promising to me.

[fishing]

I read that and wonder what is the interest rate going to be! Make you think it's already been decided, and we are just waiting.

[Officiallytook]

Exactly...

Beer! anyone?

[Candy01]

Do they HAVE to RV FIRST in order to sell these domestic and international bonds?

 

Thanks!

 

[trvlr787]

I have a feeling they could issue them in dollars and not have to RV

[pocono]

trvlr87

 

You would be correct..they have said they will denominate these bonds in dollars.

[sandfly]

THANKS

[DinarThug]

THANKEN - NOT STIRRED !

[sandfly]

DANG IT, UR THE MAN CLOWN

[Candy01]

So WHEN the HELL ARE they FINALLY going to RV, if they DON'T have to do it in order to sell the bonds?

 

:rocking-chair: :mad:

[new york kevin]

Wouldn't it be cool if our deficits was 12% of GDP?

[10 YEARS LATER]

IN USD _ WTF ? ! ?

[10 YEARS LATER]

My god these people are exasperating - if they do this in USD, what's the point in ever needing to RV ? . . . if they can still do business in USD, why would the IMF, WORLD BANK or for that matter anyone in the financial community give a fat rats a$$ if they RV or not.

 

If they've been stringing investors along all these years with never the intention to RV . . . there could be one almighty backlash against Iraq that would make them wish they had RV'd. I hope I'm wrong, real wrong on this.

[DinarThug]

IN USD _ WTF ? ! ?

Adam Said In A Recent Chat That Issuing The Bonds In Dollars Instead Of IQD Was Preferable

So That The Bonds Wouldn't Have To Be Paid Back In A Higher Revalued Dinar !

[eburt]

Agreed I thought we want them to do this in Dollars - This is better for us according Adam recent Chat - I can use a BIG Drink right about now because my head is spinning....

[DinarThug]

I can use a BIG Drink right about now because my head is spinning.... 

 

Just Don't Order The 'RV' Drink !

 

 

         

[pocono]

Does anyone think the Bond issue is a good thing and reflects positively on Iraq?

If yes..why?