Parliamentary Finance reveal governmental mechanisms to address the budget deficit

[yota691]

Parliamentary Finance reveal governmental mechanisms to address the budget deficit

• Agency eighth day
• December 31, 2014, 13:15
•  
• 43 Reading

 

BAGHDAD - ((eighth day)) Parliamentary Finance Committee unveiled a proposed governmental mechanisms to bridge the budget in 2015, which will be discussed in the House of Representatives on Wednesday deficit.   The committee member said Hossam punitive "The total of 25 Trliuna deficit and 401 billion dinars will be handled by national savings amounts to employees, assets and retained, and the rights of private clouds."   "It will also be Eurobond issuance of public debt and the issuance of bonds, loans and remittances treasury of government banks," noting that taxes on Kartat mobile and online buying cars and tickets also will fill part of the deficit. "

[Laid Back]

"It will also be Eurobond issuance of public debt and the issuance of bonds, loans and remittances treasury of government banks,"

Go Iraq

Go budget

Go dinar

Go strong $1.13:1

January 2015

[yota691]

DEFINITION OF 'EUROBOND'

A bond issued in a currency other than the currency of the country or market in which it is issued. 

 

INVESTOPEDIA EXPLAINS 'EUROBOND'

Usually, a eurobond is issued by an international syndicate and categorized according to the currency in which it is denominated. A eurodollar bond that is denominated in U.S. dollars and issued in Japan by an Australian company would be an example of a eurobond. The Australian company in this example could issue the eurodollar bond in any country other than the U.S.

Eurobonds are attractive financing tools as they give issuers the flexibility to choose the country in which to offer their bond according to the country's regulatory constraints. They may also denominate their eurobond in their preferred currency. Eurobonds are attractive to investors as they have small par values and high liquidity.

[sandfly]

THANKS

[RAGARCIA62]

Sounds promising. Good morning, all. May you all have a great new year. Thanks for the news, Yota and for the definition. I did not know what a Eurobond was and sounds like we are getting close. It sounds to me like it would be the "internationally traded" we are looking for. But what wtf do I know?

Let's get this RV started!

[gregp]

Amazing news Master Yota. I had to look to see who posted this news. You sneaky avatar changer you.

[SocalDinar]

Sounds like they are fishing for new worldwide investors to buy their debt

is this a good thing?

[yota691]

Sounds promising. Good morning, all. May you all have a great new year. Thanks for the news, Yota and for the definition. I did not know what a Eurobond was and sounds like we are getting close. It sounds to me like it would be the "internationally traded" we are looking for. But what wtf do I know?

Let's get this RV started!

Happy New Year to you and the Family and all of DV...

[HisHands]

Happy New Year to you, also Yota! Thanks for all you have brought us in 2014!

[10 YEARS LATER]

The Force Is strong with [ Yota ] this ONE.

 

A REAL Happy New Year All !

[MyLadiesDaddy]

Sounds like they are fishing for new worldwide investors to buy their debt

is this a good thing?

I don't believe Iraq has much debt.

[SocalDinar]

I don't believe Iraq has much debt.

I think Besides Kuwait you are right LadyGrace'sDaddy, But selling Bonds creates new debt.  They must be paid back+ interest so its a basically an IOU.

[zul]

If they plan to increase the value of dinar in the near future, eurobond looks like a good plan if they can do this soonest rather than later. This means more dinar will be off the street.

The bond could be denominated in dollar but purchases in local currency.

This is another means of dolarization - transferring the wealth/value of your currency to another foreign currency, temporarily, while you 'clean up' your house.

So when the bond reaches maturity date, say 3 years down the road, it will only cost you 1 dinar for every dollar due (assuming the rate is 1:1), instead of 1,166 dinar

Edited December 31, 2014 by zul

[SocalDinar]

If they plan to increase the value of dinar in the near future, eurobond looks like a good plan if they can do this soonest rather than later. This means more dinar will be off the street.

The bond could be denominated in dollar but purchases in local currency.

This is another means of dolarization - transferring the wealth/value of your currency to another foreign currency, temporarily, while you 'clean up' your house.

So when the bond reaches maturity date, say 3 years down the road, it will only cost you 1 dinar for every dollar due (assuming the rate is 1:1), instead of 1,166 dinar

I like it!

 

:twothumbs:

[vomer]

Here's a mechanism

 

[yota691]

The Procedures for the Eurobond Issuance Process

Original post by Lisa Magloff of Demand Media

Eurobonds are issued by banks and syndicates, on behalf of the borrower.

Comstock/Comstock/Getty Images

A eurobond is a bond issued in a particular currency, such as euros or dollars, and sold to investors in markets other than the one using the currency of the bond issue. For example, eurobonds in U.S. dollars cannot be a issued in the U.S. Eurobonds allow issuers to offer bonds in different countries, based on the regulatory climate, economy, value of the currency and other factors. Eurobonds make up a large part of the international bond market and tend to have high liquidity. There is a specific process to follow when issuing eurobonds.

 

 

• 1 Select a Lead Manager
• 2 Organize a Syndicate
• 3 Selling the Bonds
• 4 Principal Paying Agent
  •  

Select a Lead Manager

Eurobonds are issued by underwriting syndicates. These syndicates are made up of investment and merchant banks and may be formed in different ways. Generally, the borrower chooses one investment bank to be the lead manager of the bond issue. The lead manager then negotiates with other banks to form the syndicate. Borrowers may also use existing syndicates or ask a particular investment banker to act as lead manager.

Organize a Syndicate

The lead manager negotiates with other banks to form a managing group. This group then negotiates the terms of the bond issue with the borrower. Members of the managing group will also form another group to act as underwriters in the bond issue. The underwriters will commit their own money to buy the bond issue from the borrower -- at a set minimum price. They then sell the bonds on to secondary markets at an agreed profit. The managing group will also negotiate with other banks to form a selling group -- this is the group of banks that will actually sell the bonds to investors.

Selling the Bonds

Once the syndicate is formed and the terms of the issue are agreed upon, the managing group buys the bonds from the borrower. The managing group then sells the eurobonds to the underwriters, and the underwriters sell the bonds to the selling group. The banks that make up the selling group then sell the bonds on to investors. One thing to keep in mind is that although there are several roles -- managers, underwriters and sellers -- these roles usually overlap, so that managers may also be underwriters and sellers.

Principal Paying Agent

A principal agent is chosen. This is the bank that is responsible for receiving interest payments from the borrower and passing them on to the investors who buy the bonds. A fiscal agent or trustee may also be appointed by the borrower to handle the paperwork and legal aspects of the eurobond issue and act as principal agent. The trustee will also represent the purchasers of the bond if the borrower defaults. Trustees and fiscal agents are generally banks, and not individuals.

[yota691]

Iraq Eurobond 2028 | IRAQEUR0128.bnd Last Updated On: 18 Jun 2014

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Pricing Provider Currency Bid / Ask Price Bid / Ask Yield Bid / Ask Size (M) Updated (GMT) Trading Desk Thomson Reuters USD    01 Jan 2015 - 07:02 Contact Trading Desk

Important Note: Users should treat such data with care as Bonds Monitor does not warrant that such information is accurate or complete.

 

ISSUE FACTS Bond Name Iraq Eurobond 2028 Currency USD Offer Size 2,700,000,000 Status Outstanding Maturity Date 15-Jan-2028

ISSUER FACTS Issuer Central Bank of Iraq Country Iraq

KEY DATES Subscription To 15-Jan-2006