Iraq stop the plan to issue bonds because of international high-yield

[yota691]

Iraq stop the plan to issue bonds because of international high-yield

 

Sunday October 112 015 15:12

 

 

 

 

Alsumaria News / Baghdad

Ministry of Finance announced on Sunday that Iraq suspended its plans to issue international bonds, attributed the reason for this is that the revenue that will pay will be very high.

 

Fadel said the Prophet Iraqi Deputy Minister of Finance that the recent "ordered a halt to bonds because the interest rate will be high."

 

It was Iraq who are fighting terrorist groups and suffering from shrinking oil revenues because of low crude prices may hold meetings throughout the week with investors inEurope and the United States last month in an effort to promote a version planned.

 

The aspires to raise about two billion dollars from the initial version is denominated in the US currency in the context of the series were versions will reach six billion dollars.

 

But informed sources said that investors demanded very high returns, which was Iraq will carry a heavy financial burden.

 

[Rabbi]

Quite frankly, this was a smart move by Zebari.  Iraq was given an non-investment-grade rating by Moody's, Standard & Poors, AND Fitch & Rhodes.  The investment risk level on this proposed offering was perceived as being too high for the interest rate they were going to pay to potential investors.  As a result, these bonds would have sold "at a discount" upon being made available to the public, and Iraq would have yielded less than the face amount.  Iraq is just not quite ready to go fully "international." 

[yota691]

Markets | Sun Oct 11, 2015 9:27am EDT Exclusive: Iraq halts plan for international bond issue due to high price

BAGHDAD/DUBAI | BY AHMED RASHEED AND HADEEL AL SAYEGH

•  
  
•  
  
•  
  
•  
  
•  
  
•  
  

Iraqi Finance Minister Hoshiyar Zebari speaks during a news conference in Baghdad July 12, 2015.

REUTERS/KHALID AL-MOUSILY

 

Iraq has halted its plan to issue international bonds because the yield it would have to pay on the debt was too high, Deputy Finance Minister Fathil Nabi said on Sunday in a fresh blow to the country's efforts to finance itself.

Finance minister Hoshiyar Zebari "ordered that the bond be halted because the interest rate is high", Nabi told Reuters. He did not comment further and it was unclear when, if ever, the plan might be revived.

Iraq, which is battling an Islamist insurgency as well as shrinking oil revenues due to low crude prices, held a week of meetings with investors in Europe and the United States last month in an effort to attract interest in the planned issue.

 

 

 

 

 

 

 

It aimed to raise about $2 billion in an initial U.S. dollar-denominated issue, its first international bond sale in nine years. The bond, with a tenor expected to be five or seven years, would have been part of a series eventually totaling up to $6 billion.

The government, which has projected a fiscal deficit of about $25 billion this year in a budget of roughly $100 billion, said it needed the proceeds of the bond to pay salaries and fund infrastructure projects in the oil and gas, electricity and transportation sectors.

But investors demanded extremely high yields, which would have been financially burdensome for Iraq if it had agreed to pay them, sources familiar with the matter said.

Zebari told members of parliament's financial committee last week that "it was too difficult to accept paying an 11.5 percent yield in return for an $2 billion bond", the committee's secretary Ahmed Haji Rashid told Reuters.

Iraq hired three top global banks to arrange the sale, Citigroup, Deutsche Bank and JP Morgan Chase, but many institutional investors baulked at the risks.

Standard & Poor's assigned Iraq a B-minus credit rating last month, six notches below investment grade, saying security and institutional risks were among the highest of any sovereign it assesses, on a par with Egypt and above Greece.

"There was an expectations mismatch on the Iraq bond pricing. They are an oil exporter with ISIS in their backyard, and that weighed negatively on the bond sale, besides sluggish oil prices," said an official at a European investment firm.

It was not immediately clear how Iraq would cover its deficit without the hoped-for bond proceeds, although aid from international donors looks likely to bridge the gap for a while at least. The World Bank said in July it would provide Iraq with loans totaling $1.7 billion, while the International Monetary Fund agreed this year on an $833 million loan program.

Bank of America Merrill Lynch said in a report last month that a failure by Iraq to sell bonds might eventually persuade it to seek a bigger loan from the IMF.

[Texstorm]

I agree with the bond part Rabbi but Iraq has the world at its doorsteps right now, if they don't go international soon , many of the investors who are ready won't go all in. Iraq needs to finish what they started, ratifying all of these laws and completing the HCL. That will be the grease that oils the machine, that pays for security and the governments payroll. Oil prices will rise and they can enjoy the surpluses after that. Iraq has been trying to put the cart before the horse and there is no perfect situation. Like I've said many times before, Iraq is bought and paid for and now it's time for them to any up !

[four wheel drift]

Agreed Texstorm they have to start somewhere and they don't get to start from the top. They have to work their way up the ladder.

FWD

GO RV

[blueskyline]

I agree Texstorm There are other countries looking attactive for investment . Like Iran .

[TrinityeXchange]

in a nutshell this tells me that iraq was really just testing the waters, getting a feel for investor sentiment.  at least now they have attained a measuring stick whereby they can grade themselves and make the necessary adjustments.  with all of the international assistance coming in at a rate much lower than they would have paid out if borrowing through their bond issuance, it is a no brainer that they would rely on assistance for the time being.  

[Laid Back]

No bonds for sale

No delete the 000

I think zebari and the CBI have a different plan.!

Go Abadi

Go reforms

Go CBI

Go dinar

Go international

Go increase exchange rate

[jeepguy]

I read it ---  it  will be difficult to pay at 11.6  yield , and in light of this ,  raise the value of dinar  up too .  ---- 23 cents per dinar ,  this  will incorporate the  yield interest and  have a value of 10 too 12 cents  paying field ....   just my thinking   

Edited October 11, 2015 by jeepguy

[MyLadiesDaddy]

Has no one been watching the movements of Zebari for the last few days?

 

Minister of Finance review the relationship with the International Monetary Fund

 

Zebari: Iraq, a country rich in natural resources

Read more: http://dinarvets.com/forums/index.php?/topic/209368-minister-of-finance-review-the-relationship-with-the-international-monetary-fund-imf/#ixzz3oHGTk5UC

 

 

Iraq express his desire to develop its relations with the International Monetary Fund to help him confront the financial crisis

Read more: http://dinarvets.com/forums/index.php?/topic/209368-minister-of-finance-review-the-relationship-with-the-international-monetary-fund-imf/#ixzz3oHGma9Ee

 

And I personally like this one cause we all know that she told Zebari to," go home and stop your 

 

issuance of bonds", cause that's gonna make the IMF look so much better.

 

Lagarde warns of weakening the credibility of the International Monetary Fund

Read more: http://dinarvets.com/forums/index.php?/topic/209368-minister-of-finance-review-the-relationship-with-the-international-monetary-fund-imf/#ixzz3oHH43nqm

 

Cause after those meetings everyone knows that the entire world isn't looking at the 

 

emerging markets to save the world. And that Jacob's really just didn't mean anything by this,

 

He said US Treasury Secretary Jacob if Thursday: "If reforms are not implemented, the consequences for the United States and the international community will be very large."

Read more: http://dinarvets.com/forums/index.php?/topic/209368-minister-of-finance-review-the-relationship-with-the-international-monetary-fund-imf/#ixzz3oHISuf8t

 

Everyone is waiting on the HCL and trying to make sense of how all that Iraq is doing will make it

 

possible for them to change the value of there currency. Well I have repeatedly stated, and will do so again,

 

that it wont be done that way. If you attempt to use conventional economic wisdom there is absolutely no 

 

possible way on earth that Iraq can change the value of the dinar. And herein lays the problem, everyone 

 

is looking at this through conventional wisdom. 

 

BUT IRAQ ISN'T ,

 

 Islamic economics of «magic voodoo» to astound the West economists

 

 

And since most folks are lazy and wont read the articles I've linked to let me give you this from the 

 

last link, 

 

Dr Abbas Mirakhor one of the most who have worked in the field of Islamic economics internationally and within the IMF Economists International they believed the impossibility of the existence of an Islamic financial system because they see the impossibility of the system, not the benefit of asthma have pushed this to the irony of this could happen, considering that the system Such will be the «economy Voodoo» (kind of magic)   as not based on the real rules.   

Maybe this will be of help, 

 

One of the first things one learns when training for combat is to understand and think like your 

 

enemy. In doing so you will better see how to defeat them. We are all looking for a financial windfall here, 

 

and  when that comes {and it will come} everyone here is going to be saying to Iraq, "Oh thank God for saving 

 

us. Thank God for reinstating your dinar and making us all so rich". But they wont even be giving us a 

 

second thought. You see they are NOT our friends.

 

They are NOT doing anything to help us.

 

They are NOT worshiping the same God you think you do.

 

And while everyone is laughing and enjoying there new wealth, Iraq will be taking over the world.

 

Implementing there form of rules, and by the time most realize what has happened it will be much to late.

 

I recently heard something about Iraqis , and Arabs in general, that is of much importance here.

 

" they read ONE BOOK","they have ONE THING on there minds". "they spend there ENTIRE LIVES

 

DOING ONE THING", They don't cloud there thoughts with foolish entertainment, or simple

 

little pleasures. They are quite possibly the most focused people on earth. So what is it that they are so focused on?

 

THE IMPLEMENTATION OF ISLAM THROUGHOUT THE WORLD.

 

And that is going to cost allot. And they will pay for it with what they themselves have termed

 

  «economy Voodoo»

 

So why did Zebari stop the issuance of the bonds? Well it probably has more to do with the value of 

 

the dinar at this time and the value of the dinar at the time of cashing in of those bonds. And how that

 

will be far too expensive. In layman's terms this is a very good thing as far as your financial situations are 

 

concerned.   

 

I would like to give thanks and credit to our very own Jedi Master Yota for his contributions to this post.

 

None of which could be possible without his diligent newshouding.     

Edited October 11, 2015 by ladyGrace'sDaddy

[MyLadiesDaddy]

Thanks for the cherry,       it reminded me of this,

 

 

[WheresmyRV?]

Thanks for this excellent writeup LGD!

[slb]

Good post LGD. Don't Know why the negs......

[olivesman]

I am honored to associate with you, LGD and HOPE that Iam able to continue this association POST-RV!

[SnowGlobe7]

I read it ---  it  will be difficult to pay at 11.6  yield , and in light of this ,  raise the value of dinar  up too .  ---- 23 cents per dinar ,  this  will incorporate the  yield interest and  have a value of 10 too 12 cents  paying field ....   just my thinking   

 

JEEEEEEEEEEEEEEEEEEP!!!!!!!!!!

[sandfly]

THANKS

[new york kevin]

Get that ISIS thing buttoned up and you will stop the monetary hemmoraging. Then simultaneously RV and Issue Binds

[skeetdog]

Thanks Yota...Nice job LGD...Iraq holds their own fate...They've got the Islamic and world financial institutions backing them up to see this thing through...Seems they just can't fined the forest for all them damn trees in the way...

[gregp]

This is great news. I smell an increase. Great post LGD. Yota, you're the man.

[k98nights]

• 
   

10/12/2015 (00:01 pm)   -   the number of readings: 129   -  number (3476)

 

 

 

 

 

BAGHDAD / Reuters 
 

Fadel prophet Iraqi Deputy Minister of Finance, said on Sunday that Iraq suspended its plans to issue international bonds because the yield to be paid will be very high.

Prophet told Reuters that Finance Minister Hoshyar Zebari, "ordered a halt to bonds because the interest rate will be high." 
He was Iraq, which suffers from shrinking oil revenues because of low crude prices and the costs of the war on Daash may hold meetings throughout the week with investors in Europe and the United States last month in an effort to promote a version planned. 
It was aspires to raise about two billion dollars from the initial version is denominated in the US currency in the context of a series of versions were will reach six billion dollars. 
But informed sources said that investors demanded very high returns, which was carry Iraq heavy financial burdens.

 

 

http://almadapaper.net/ar/news/497140/%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%8A%D9%88%D9%82%D9%81-%D8%AE%D8%B7%D8%A9-%D9%84%D8%A5%D8%B5%D8%AF%D8%A7%D8%B1-%D8%B3%D9%86%D8%AF%D8%A7%D8%AA-%D8%AF%D9%88%D9%84%D9%8A%D8%A9-%D8%A8%D8%B3%D8%A8%D8%A8-

 

[k98nights]

 

البنك المركزي يمدد بيع السندات لصالح لوزارة المالية الى نهاية تشرين الاول

10/12/2015

 

BAGHDAD / JD / .. central bank announced the extension of selling own bonds in favor of the Ministry of Finance up to 31 of October, while noting that these bonds will be sold at a price (1095) dinars per US dollar. 
A statement issued by the Bank received / JD / copy it has been the extension of sales in nominal bond futures for delivery in the currency of the US dollar (the holder ") on behalf of the Ministry of Finance up to 13 \ 10 \ 2015 by maturity (100000,50000,10000,5000,1000) US dollars maturity period of one year and a half payable in any 31 \ 3 \ 2017 and a total of $ 2 billion US dollars. 
He said: The sale of such bonds by the Central Bank of Iraq in Iraqi dinars at a price (1095) dinars per US dollars (one thousand and ninety-five) dinars to the dollar and is payable by the Ministry of Finance in 31 \ 3 \ 2017 and paid in US dollars at maturity. 
He continued: provide all purchase orders banks to the Bank and restrict the amounts we have to open their accounts we have, whether the bonds to the bank or on behalf of the public (of natural and legal persons) who have a current account at the bank offers purchase order to direct the bank to the bank in turn buy those bonds to its clients through the purchase offers to the Iraqi Central Bank. You can use those bonds form as collateral for loans, facilities or any transactions require collateral. / End / 22 /

 

 

http://www.dananernews.com/News_Details.php?ID=6221

 

10/12/2015 11:23 GMT

  Central Bank extends special sale of bonds to the Ministry one month

 Follow-up - and babysit -

 

 

The central bank, announced Monday, to extend the sale of own bonds in favor of the Ministry of Finance one month, adding that he will sell the bonds at a price of Iraqi dinars 1095 dinars per dollar.

 

The bank said in a statement received news agency public opinion (and babysit) a copy of it "will be extended selling the nominal value of the bonds delivery term in the currency of the US dollar on behalf of the Ministry of Finance to be up to 31 of October, rather than September, which announced it in advance," he said. " Asdarih will be four categories (2,500 to 10,000 and 50,000 and 100,000) US dollars and the total amount of two billion dollars. "

 

He added that the bank "will sell the bonds at a price of Iraqi dinars 1095 dinars per dollar, and is payable by the Ministry of Finance in March 312 017 to be paid in dollars maturity."

 

And established the Central Bank of Iraq, an independent bank under the law issued on the sixth of March 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies are being daily for the sale and purchase of foreign currencies sessions except public holidays which stops them Bank for these auctions.

http://www.alrayy.com/155378.htm

[Rasica]

 

Iraq stop the plan to issue bonds because of international high-yield

 

Sunday October 112 015 15:12

 

But informed sources said that investors demanded very high returns, which was Iraq will carry a heavy financial burden.

 

 

IMO, it was all a ruse anyways. Iraq's IQD is not released to their GDP/GNP. Iraq is outside the world economic system presently and trying to take back their GOI/CBI from the Cartel/ISIS paradigm.

[TrinityeXchange]

.... and trying to take back their GOI/CBI from the Cartel/ISIS paradigm.

 the CBI is a hostage of ..... ISIS  

[Rasica]

Its a paradigm.

[SnowGlobe7]