Old Chat from BL speaking of Scooters thoughts on Bonds

blueskyline · September 8, 2015

Posted 13 November 2013 - 07:22 PM

*

POPULAR

BLC Administrator's Chat 11/13/2013

[lightingcslt] Scooter once said, look for the Central Bank to issue bonds in local currency and that would be a great sign that Iraq is ready to change their monetary structure - tlm724 you remember that

[tlm724] lightingcslt yes I do !

[lightingcslt] *hallelujah* its a coming

[tlm724] even though shredd commented on the bonds I'd like to talk to him about it too

[lightingcslt] tlm724 yeah where is that banker anyway

[tlm724] I don't know lol

[lightingcslt] tlm724 I remember more about the two banks getting thier books in order first

[tlm724] lightingcslt let me look at an old scooter chat give me a few to find it

[Dogznova] there's the banker now

[b2stepblue] Shredd whats your take on the bonds

[Dogznova] haven't they been doing bond auctions for quite some time now?

[shredd] b2stepblue great news and expected as well. it's a good indication of the maturity of iraq economically

[tlm724] [scoooter] So they need to diversify that economy and this will draw more to the capital markets I mean rightj now Iraq's capital markets are running at 5% of their GDP while Jordan on the other hand it's close to 200% of their GDP

[shredd] agreed . yes and we've already seen that starting....a new large fund just went to market [scoooter] and that's sustanable .Shredd exactly but what's even more important is the establishment of the bond market that bond market will help the government be liquid

[shredd] oh yes it will

[scoooter] and that's kinda sorta important

[shredd] indeed... ie sovereign bonds

[scoooter] Yes --- the primary bond market will be consumed by the internal companies like insurance companies and utility companies and they'll probably be offered at a nice fat rate too I mean % . yes [shredd] yes and secondary will be financial products

[scoooter] and again, they'll realize the multiplier and it's effects will be felt throughout their economy

[tlm724] what's even more important is the establishment of the bond market

[shredd] tlm724 hey you

[tlm724] Shredd hey sorry didn't see you lol how are you ?

[shredd] good, just got back from a week's vacation yesterday...catching up

[tlm724] Shredd *hallelujah*

[tlm724] thats the scooter chat ^^ lighters 4-25-13

[shredd] great news on the bonds......these will show investors stability

[shredd] the hot word for them for over a decade

[tlm724] Shredd yes !!

[shredd] and what's great is bonds by nature are not short term investments so the investors to these know iraq is dependable for a longer run plus, the rate tells me it is low risk

[shredd] as bonds normally are, this release is a test imo seeing the demand for the product. I 've seen this happen many times before, a new product, or a new industry or in this case a sovereign bond test the appetite and you just watch, they will be releasing more in Q1 too

[lightingcslt] Shredd but only in Iraq as well

[shredd] right lighters , local for now which is smart Iraq has a lot to prove to the investors who have been waiting and watching this is the first, beyond the street, step

[shredd] I know we all expected this, but it is no coincidence regarding the timing by year end. I'll be looking for the prospectus and we can do a chat on it when it releases

[shredd] lightingcslt intl investment will be right around the corner this be the spark we've been looking for !

The Governor of the Central Bank said that the first tranche of bonds is expected to be worth three billion Iraqi dinar

Baghdad/Obelisk, said Abdul Basit Turki, Governor of the Central Bank said Tuesday that Iraq is planning to issue bonds in local currency for the first time since the overthrow of Saddam Hussein, which would give the country a new tool of monetary policy.

Turkish, he said on the sidelines of a Conference in Geneva that the first tranche of bonds are expected to amount to three billion dinars (2.58 million US dollars).

He added that this will be the first time that a bond issue for fiscal policy and not for the purpose of funding.

Turki said he expected that the first version of the new bonds will be a good response and may be followed by more releases and the total size of the issue will depend on demand.

It will increase the bond order for five years and hopes the Central Bank issued the first tranche before the end of the year, although that decision will be taken with the participation of the Ministry of finance.

He said that the bond interest is expected to be less than the standard interest rate of the Central Bank of 6 percent.

He said Iraq's inflation rate of 2 percent describing it as a rare and very good number.

He said there were no plans to issue international bonds even though that might happen in the future if there are ambitious plans for the development of needed funding.

http://www.almasalah...px?NewsID=19706

dealerdean: The Governor of the Central Bank said that the first tranche of bonds is expected to be worth three billion Iraqi dinar