Proposal to launch a Government bond debt in dollars

[yota691]

Proposal to launch a Government bond debt in dollars

 

 

         

3/18/2015 0:00 

As supporting the national economy 

 BAGHDAD - Mostafa Hashemi 

suggested economist appearance of Dr. Mohammed Saleh, the Ministry of Finance to issue Government bond debt is denominated in dollars, not dinars to contribute to the achievement of a national dividend would reduce the budget deficit ratio. 

According to Wikipedia, the sovereign debt in the form of bonds, and when governments issue bonds they behave Spillane either put up their own currency bonds, which are geared toward local investors, in this case called the religion we have a government. 

or the government to issue-oriented investors in overseas currency other than the local currency bonds, which are often international, such as the dollar or currency euro. 

Saleh added in a statement the "morning" that the citizen trust much the government and when issuing government support and promotion at home and abroad, it is expected to deliver a high turnout of the public who are looking for an easy and low-risk investments. 

He said the possibility of issuing such bonds periods repay chains of time ranging from one year, 5 years and 10 years, stressing the possibility that sold in the secondary domestic and global markets at a discount, pointing to the need to be classified degree credit for receiving the admissibility more among citizens abroad or foreigners who wish to buy these bonds. 

He pointed out that the reason for evaluating the dollar comes to granting citizen's confidence to achieve greater financial returns and encourage the acquisition because it has thus contributed to the support of the country's economy and establish a good market for borrowing and reassure the public the possibility of selling in global markets or local (banks).

 

[vato96]

smart move so that they don't pay too much if they RV. Like they will have to pay us!! I hope!!!

[moneysoon]

The plot thickens.........

[skrappyone]

smart move so that they don't pay too much if they RV. Like they will have to pay us!! I hope!!!

Thats what I was thinking also.  A USD will still be worth 1 USD as opposed to a Dinar RI at 3.58.  

[yota691]

Here a little past info retrieve from this article...Secondary Domestic is what I searched.....this what top the list...Iraq and Japan along with the IMF... ie..Study as it states...here a Little Bit of it...GB = Government Bonds...

INTRODUCTION I. Overview of the Study The government bonds market is at the core of the financial market in most economies. It deals with tradable debt instruments issued by the government for meeting its financing requirements.1 The government bond (GB) market is also a guide for the investment of all financial securities and stock; it forms the backbone of a modern securities market. It contributes mostly to converting savings into investments, disseminating information, managing risk, and supporting the activity of other securities. GBs serve to implement the crucial transfer of savings in an economy. The benefits of GBs accrue to all economic agents, but especially to the government and Central Bank. Public enterprises and local governments, banks, financial institutions, businesses, and households also benefit from GBs. Activity in the GB market can affect overall investment in the economy through three channels: First, the financing channel. The government has come to rely on issuing bonds to meet most of its financing needs. The GB market also provides the economy and its policies with an impetus towards economic development. On the other hand, the Ministry of Finance (MOF) is relied upon to finance the government’s expenditures and budget deficit, as well as to reduce dependence on oil revenues. A deep and liquid GB market facilitates its borrowings from the market at reasonable cost. The enhanced ability of the government to raise resources from the market at market-determined rates of interest allows it to refrain from monetization of the deficit through Central Bank funding. Second, the generator channel. The Central Bank (CB) also uses the GB market to conduct open market operations (OMO) for management of liquidity and interest rates. Hence, the GB market will generate the fiscal and monetary policies to become more powerful and effective in the economy. A developed GB market allows greater application of indirect or market-based instruments of monetary policy such as open market operation. In addition, the CB is motivated to use the GB as an instrument of fiscal policy, thus the GBs become a good tool in the hands of the fiscal policymaker. This means that both the fiscal and monetary policies grow stronger than they would if implemented separately. Thus they can play a strong role in the economy, and their

effect on the macroeconomic variables will be more efficient and constant in creating economic growth. Third, the motivation channel, In addition, the GB market motivates investment particularly in private-sector instruments, including financial assets like securities and stock. This leads to strengthening the stock and all financial markets. The GB market will have a positive influence on private investment by enabling it to develop private bonds market in three ways: 1. By putting in place a basic financial infrastructure, including laws, institutions, products, services, repo and derivatives markets. 2. By building an efficient financial system and establishing credible investment in all financial assets. 3. By playing a role as an informational benchmark. Why is Japan a base of comparison for this paper? Japan’s economy is the second-largest economy in the world after the United States. Moreover, it has a strong and effective GB market. In addition, the JGB market considers the generation and guidance of financial investments. As Iraq’s economy is potentially very rich, due to its petroleum reserves. Can it not finance revenues its public expenditures and reconstruction costs through oil exports? It can, but as is now apparent, oil is not a perpetually sustainable resource, and the age of oil is drawing to a close,2 meaning it is necessary to find other methods for financing the economy. Furthermore, the development of the GB market not just for finance, but also for generating and motivating the economy towards economic growth. II. Background of the Study Iraq’s economy is dominated by the oil sector, which has traditionally provided about 95% of its foreign exchange earnings. Furthermore, the government budget is also dependent on this sector mainly to finance all public expenditures. In addition, the income of the oil sector relies on international variables, particularly on the market price of oil and the exchange rate value of the US Dollar. Moreover, as we said above, oil as a resource is limited. During the last three decades, Iraq’s economy has suffered from pervasive state intervention, costly militarization, three wars, and over twelve years of international sanctions. As a result, this situation has made the economy weak, while heavy debt and

underdevelopment act as a drag on other economic sectors. After the 2003 War, with the occupation by American coalition forces, the Iraqi economy has suffered from complete destruction not just of the economy, but also of every aspect of life in Iraq. Everything in Iraq must be reconstructed, which requires a large amount of funding. In fact, the Iraqi economy needs a new strategy to correct its course, and to revitalize its economic activities. This strategy should focus on correction in economic policy, particularly on fiscal policy. A strong foundation for economic growth depends on the resources provided in the economy and requires diversified financing resources. We think the fiscal policy should depend on traditional Keynesian policy because of the severe economic and financial situation. This policy aims to increase public investment in infrastructure and reconstruction, and give more freedom to the private sector, as well as reduce the tax rate in order to stimulate economic growth. Moreover, the Iraqi government should rely on a new method for financing its increasing expenditures by developing the financial system, especially the GB market as a source of funding. As we said above, the GB market gives a large impetus to the economy through providing financing and promoting economic policy. In addition, Iraq’s economy has a very weak and inactive taxation system Iraq’s economy does not need to increase tax rate because it is in reconstruction mode, and the economy needs active private sector. To that end, the economy should give more opportunities and ease restrictions so the private sector may prosper particularly at this stage. Furthermore, Iraq’s economy has a big external debt. The exact size of Iraq’s external debt obligations is unknown, but it is estimated at about USD 125 billion. On the other hand, the assessment of immediate and medium-term reconstruction needs throughout Iraq’s economy is estimated to be more than USD 100 billion. This figure covers security, the oil industry, physical reconstruction, technical assistance, and others. III. The Study Hypothesis As mentioned before, the study relies on the following general hypothesis: “The Government Bonds Market has a positive influence on all economic activities by enabling the development of economic growth” in three ways: (i) Financing public expenditures; (ii) Generating Fiscal and Monetary policies; and (iii) Motivating financial investment.” IV. Objectives of the Study For the reconstruction of Iraq’s economy, all sectors must be developed, especially the financial system and GB market, because these will provide much funding for the government. Meanwhile, GBs are considered to be a good instrument to influence

macroeconomic variables. The main goal of this study is to examine the applicability of lessons from Japan’s experience with developing its financial system, particularly in regards to developing a GB market for Iraq. To fulfill this goal, our research objectives are: 1. Discussion of Iraq’s financial system and government financing trends and development 2. Evaluation and identification of current financing problems 3. Investigation of the viability of alternative sources of financing, with a focus on government bonds market 4. Formulation of policy recommendations for facilitating development of Iraq’s GB market and financing through it V. The Scope and Period of the Study The scope of this study: This study considers Japan’s postwar financial system and GB market as a model applicable to Iraq. The study of how Japan was able to reconstruct its economy after War World II is very important for reconstruction of Iraq’s economy.

[Markinsa]

Sweet! Bait and switch!!!!  I was wondering how they would get rid of all of those Trillions of Dinar sitting on deposit.  Large depositors buy these US Dollar Bonds with a sweet interest rate, and after those Dinar change to US Dollar Bonds, they RV!  Nice!!!

 

-

[10 YEARS LATER]

Sooooo . . . how much longer do we wait, now ?

[sandfly]

THANKS

[yota691]

Conscious / Finance Minister: Iraq is considering the issuance of international bonds denominated in dollars to help bridge the deficit going forward

18/03/2015 06:36 | Number of Views: 158

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Conscious / Follow-up

Finance Minister Hoshyar Zebari, Wednesday, that Iraq is considering the issuance of international bonds denominated in dollars for five years worth five billion dollars to help it plug in going forward and will soon begin to pay some dues foreign oil companies.

Zebari said in a statement I followed ( and the Iraqi News Agency Information / INA ), "for government bonds will start talks with Citibank and Deutsche Bank tomorrow," in reference to the two banks, which Fodthma Baghdad to advise on the deal. "

"I think in borrowing through the issuance of government bonds worth five billion dollars sold outside Iraq."

And may issue bonds to be five billion dollars a big deal it is difficult for international investors absorbed all at once, especially in light of the lack of political and economic stability in Iraq. Zebari did not elaborate on the release date or financial conditions.

Zebari said that "his ministry issued treasury bills for the year worth four trillion Iraqi dinars, equivalent to about $ 3.5 billion in the local market on behalf of the Ministry of Oil and may issue additional authorizations of $ 1.5 billion.

He said, "Iraq is now owns the necessary funds to pay dues to the international oil companies.

"I think we will start reimbursing the international oil companies in the first of April."

Zebari said "we have allocated $ 12 billion in going forward for the oil ministry, but they want more pay dues to the international oil companies in order to stimulate production."

[yota691]

Zebari: Iraq may issue bonds to five billion dollars

6:38: 03/18/2015

 

Khandan- Finance Minister said in the federal government, Hoshyar Zebari, said Iraq is considering the issuance of international bonds denominated in dollars for five years worth five billion dollars to help it plug in going forward and will soon begin to pay some dues foreign oil companies. Zebari said told Reuters on Wednesday "For government bonds, we will start talks with Citibank and Deutsche Bank tomorrow," in reference to the two banks, which Fodthma Baghdad to advise on the deal. Zebari said "we think of borrowing through government bond issue worth five billion dollars sold outside of Iraq." He said Zebari that The ministry has issued treasury bills for the year worth four trillion Iraqi dinars, equivalent to about $ 3.5 billion in the local market on behalf of the Ministry of Oil and perhaps issued additional authorizations of $ 1.5 billion. He added that Iraq is now has the necessary funds to pay dues to the international oil companies. "I think we will start reimbursing the international oil companies in the first of April." The work of Western companies including Royal Dutch Shell, BP and Exxon Mobil in Iraq's southern fields under service includes a fixed fee to the dollar compared to the raw amounts of additional productive decades. Given the sharp decline in the price of oil, the raw amounts needed by Iraq to repay companies almost doubled, which led to reduced government revenue at a time when fighting organization "Daash" terrorist. Zebari said "we have allocated $ 12 billion in going forward for the oil ministry, but they want more to pay dues international oil companies in order to stimulate production. " He added: "We turned to treasury bills on behalf of the Ministry of Oil to help them."

[MillieChatham]

Thanks!

[boosterbglee]

The plot thickens alright...."like molasses in winter!" (from Josey Wales!)     I will wait!

[yota691]

 

Baghdad is considering the issuance of international bonds to bridge the budget deficit   
Wednesday, 27/05/1436 e - m, corresponding to 03/18/2015 (updated) 21:28 pm (Mecca), 18:28 (GMT)    

Finance Minister Hoshiyar Zebari said today that Baghdad was considering issuing bonds denominated in international dollars for five years worth five billion dollars allocated to meet the budget deficit and begin soon to repay some of the benefits of foreign oil companies operating in Iraq .

Zebari said in an interview with Reuters that his government will begin tomorrow in talks with US bank Citi Bank and Deutsche Bank on international bonds to be sold outside the country version.

Iraqi official date for the issuance of bonds and financial details were disclosed, and in light of the difficulty of accommodating international bond investors at five billion dollars at once, especially in light of the economic and political situation in Iraq disorder, which may cast its effects on the size of the return he would make investors who will buy bonds .

Zebari said that his ministry has issued treasury bills for the year worth four trillion dinars ($ 3.5 billion) in the domestic market on behalf of the Ministry of Oil, and perhaps additional authorizations issued a $ 1.5 billion and Lahr.

Oil companies
In a related context, the Iraqi Minister of Finance said that Baghdad currently has sufficient funds to start repay foreign oil companies operating in Iraq, predicted that Iraq is prescribed in the payment process in the first of next month, and aimed repayments process to stimulate these companies to increase production oil.

The significant decline of global oil prices to the financial pressure on Baghdad reflected in lower treasury revenue, which expects a deficit in the current budget of about $ 21 billion, and that this decline has led to that Iraq has become a need twice previously raw amounts required to pay dues to oil companies.

And international companies operating in Iraq, particularly in the southern fields, first and foremost, "Shell" and "BP" and "ExxonMobil", and linking Baghdad these companies service contracts include a fixed fee to the dollar compared to the amount of oil they produce.

On the other hand, Zebari said that the central government in Baghdad would begin within days in the delivery of the Government of the territory of Iraqi Kurdistan dues from the federal budget, estimated at more than billion dollars a month to be delivered KRG oil shipment agreed to Baghdad.

[SocalDinar]

Iraq considering issue of $5 bln bonds, to pay oil firms soon: minister Posted on March 19, 2015

Iraqi Finance Minister Hoshiyar Zebari. Photo: Reuters

BAGHDAD,— Iraq is considering an international issue of $5 billion worth of five-year, U.S. dollar-denominated bonds to help cover its budget deficit, and will soon start paying some debts to foreign oil companies, Finance Minister Hoshiyar Zebari said on Wednesday.

“For the government bonds, we will start the discussions with Citibank and Deutsche Bank tomorrow,” Zebari told Reuters, referring to the two banks Baghdad has engaged to advise on the issue.

“We are thinking of borrowing through the issuance of government bonds worth $5 billion, to be sold outside of Iraq.”

 

A $5 billion bond issue could prove a large amount for international investors to digest at one time, especially given political and economic instability in Iraq. Zebari did not elaborate on the timing or financial terms of the plan.

He also said his ministry had issued 4 trillion Iraqi dinars of one-year Treasury bills, equivalent to about $3.5 billion, in the domestic market on behalf of the oil ministry, and might issue a further $1.5 billion worth of such bills.

The money is now available for Iraq to pay international oil companies, he said. “I think we will start to pay the IOCs on the 1st of April.”

Cheap oil is ravaging Iraq’s state finances. The government has projected a budget deficit of roughly $21 billion this year and it has been building up debts to the companies developing its oil fields.

Western companies, including Royal Dutch Shell, BP and Exxon Mobil, are working at Iraq’s southern fields under service contracts, which are currently based on a fixed dollar fee for additional volumes produced.

Because of the oil price plunge since last June, the amount of crude needed to pay the companies has roughly doubled — reducing revenue for a government fighting an Islamic State insurgency.

“We allocated $12 billion in the budget to the oil ministry, but they wanted more to pay the IOCs to stimulate production,” Zebari said.

 

“We are resorting to Treasury bills on behalf of the oil ministry in order to help them.”

By Maggie Fick

 

http://ekurd.net/iraq-considering-issue-of-5-bln-bonds-to-pay-oil-firms-soon-2015-03-19

 

This is similar article out posted by yota691 a couple of days ago.

http://dinarvets.com/forums/index.php?/topic/199252-proposal-to-launch-a-government-bond-debt-in-dollars/

Edited March 19, 2015 by Markinsa
Merged Topics

[mr.unlikely]

I wonder if this bond issue has anything to do with the ISX index jumping 1131% today. Check it out, it went from 75 to 952. I almost peed my burka. I'm trying to get more info but what an eye opener

[Big_J]

Yes, real EYE opener. I like that!

[hammer911]

I don't no to much about this part so please jump on if you want. But if they issue the bonds in usd, won't that just keep the iqd the same?

[millionaire in training]

Sweet! Bait and switch!!!!  I was wondering how they would get rid of all of those Trillions of Dinar sitting on deposit.  Large depositors buy these US Dollar Bonds with a sweet interest rate, and after those Dinar change to US Dollar Bonds, they RV!  Nice!!!

 

-

 

 

Sooooo . . . how much longer do we wait, now ?

 

I was thinking the same thing.         So how long will this all take for them to start this process ?    How much longer?    

[elgin]

Thanks YOTA,

 

 

I must be tired these 10 hr days are brutal. Did I just read they want to give us bonds in USD for our IQD at 1166 you know as in like our money back type deal, and we can purchase the available bonds for the next 5 years. ?

going to bed maybe this will read different in the morning... 

[Big_J]

[Artitech]

Sooooo . . . how much longer do we wait, now ?

If it don't happen this month according to Bravo 11 another two years! I sure hope he's wrong, but he has been right so far! 

Edited March 20, 2015 by Artitech

[yota691]

Iraq oil helps to sell the publications of the international bond

 

Buyers are betting on increased oil production in the coming years, enough to service its debt Baghdad easily.

 

Middle East Online

 

Dubai / London - from Erchana Narayanan and Karen Stroykr

 

Positive incentives for the Iraqi debt

Despite the war being waged against Iraq militants organizing the Islamic state and the fall in oil prices that has plagued public Bmalith, still the country can rely on oil reserves to attract buyers to the first of publications of international bonds in nine years.

Last week, Finance Minister Hoshyar Zebari said that the central government is discussing with Citibank and Deutsche Bank version potential for dollar bonds worth five billion dollars for five years to help them bridge the budget deficit.

It is believed a lot of fund managers that Iraq will fall short of selling such a huge amount of bonds at once especially as he did not get a credit rating from one of the major agencies. And obtain a credit rating could take months.

It is true that the bond support specific oil revenues will boost investor demand but the government did not say they would do so may refuse to handcuff her hands in this way.

So may be a smaller version put forward in the coming weeks, perhaps between $ billion and two billion.

But there is no doubt that Iraq still can enter the international debt market whenever he pleases. Oil Vahtiatath very huge and plans for the production of this oil is very ambitious as to make it attractive market for funds wanting exposure to political risk versus reap high returns.

Iraq has increased the second largest producer in the Organization of Petroleum Exporting Countries (OPEC) production to 3.4 million barrels per day in January from 3.05 million barrels a year ago.

Baghdad has said it aims to raise the total capacity to between 8.5 million and 9 million barrels per day by 2020.

This goal may be overly optimistic in light of security concerns, poor infrastructure and a lack of liquidity and water. But the huge oil fields in Iraq, located in the southern region controlled by the Shiites to make them immune to the organization of the Islamic state is relatively attacks.

The bet buyers of Iraqi bonds that production will increase in the coming years, enough to service its debts Iraq easily even if it is fully implemented expansion plans.

Said Brian Carter, director of the Governor at Acadian Asset Management in Boston, "the aspirations of the Iraqi oil production and high availability of a positive catalyst for the Iraqi debt."

Trading in the secondary market refers to the Iraqi bonds are denominated in dollars maturing in 2028 to restore investor confidence in Iraq somewhat after Thavthm on sale late last year with falling oil prices.

The yield on bonds jumped to a record high of 10.49 percent in mid-December from 7.2 percent in September, but then came down to 8.54 percent.

There are several factors behind this recovery.

Iraqi government forces have made some gains in the face of the organization of the Islamic state over the past few months, Baghdad is not directly exposed to the risk.

After reaching Brent crude to $ 45 a barrel of crude rose above $ 50 a barrel.

And put Zebari complex plan to address the projected deficit of $ 21 billion in this year's budget.

The minister plans to take many actions, including the imposition of taxes on imports of cars, mobile phones and cards provide two billion dollars by reducing the rewards of government employees who earn big salaries and collect $ 1.8 billion using SDRs for Iraq from the International Monetary Fund.

If these steps have enabled the government to meet its obligations and increased oil production will be more of the state of public finances in the event of a lot better in a few years.

Iraq currently earns about $ 50 million a year from its oil exports. If oil prices stabilized, the production growth rate of only 50 percent Cedar additional revenues of approximately $ 25 billion, enough to cover the deficit in the budget entirely.

Says Kevin Daly, director of the Governor in Aberdeen Asset Management The bonds that Iraq intends to put forward would be attractive if involved a return around nine percent, and for ten years.

"There will be a demand on Iraq, but certainly will increase if they (the Iraqis) a credit rating."

And the relationship between the Iraqi traded bonds and other emerging markets are very weak, including Iraq makes an attractive investment market for some money, especially with the approach of raising US interest rates, which adversely affects the emerging markets in general bonds.

Fund managers noted also that the Iraqi traded bonds attractive price compared with dollar bonds due in 2023 to Nigeria, which is facing major political and security problems but are traded bonds yield at least 165 basis points from their Iraqi counterparts.

Said Sergei Dirgachev a conservative manager for emerging market debt at Union Investment in Germany Brivivondz The great chances of recovery of oil prices is very small while the chances of Iraq eliminate the militants to organize the Islamic state almost non-existent.

But he added: "In times of very low returns, investors are looking for credits with an adequate return."

Read more: http://dinarvets.com/forums/index.php?/topic/199665-iraq-oil-helps-to-sell-the-publications-of-the-international-bond/#ixzz3VIxaR2Xc

[yota691]

Sovereign debt securities acceptable abroad

 

 

         

3/25/2015 0:00 

Absorbed by the stock market internally 

 BAGHDAD - Mostafa Hashemi 

endorsed a specialist economic government went to borrow from the inside through the sovereign debt launched by the Ministry of Finance bonds to the public at home and abroad to reduce the proportion of the budget that was caused by the decline in world oil prices since June last year's deficit. 

In this regard predicted economic Academic Dr. Majid Baidhani to accept a large audience of traders stock in the stock market on the acquisition of government bonds by the Ministry of Finance plans to launch soon. 

He said in a statement the "morning": Culture is owned by traders stock in the Iraq Stock Exchange are well aware of bonds and returns the value of which Stderha them for possessing experience and expertise in the bond and stock value Almalah.okan Finance Minister Hoshyar Zebari, the end of last week declared that Iraq is considering the issuance of international bonds denominated in dollars for five years worth five billion dollars to help bridge the budget deficit will soon begin to pay some dues oil companies Alojunbah.oahar academic economic to the financial factor is one of the more factors that affect the credit rating of sovereign debt because that would lead to the degree of the world rankings for the national economy changed for the better, calling for speeding for the purpose of Iraq for sovereign credit from international credit rating agencies rating "Fitch, Moody's and Standard & Poor's" and the application of mechanisms and standards to improve the degree classification to become within the investment-grade low-risk, which will contribute to increasing the state's resources, allowing the country to attract investment companies and access to global capital markets and access to finance the appropriate cost. 

sovereign bonds ndash; according to Encyclopedia and Akebedea- are bonds the government issued generally to pay a certain amount at a certain date, as well as periodic interest rate for a certain period of time, with a specific interest rate, for a company or a country payments, usually government bonds are denominated in special currency in the country. 

Baidhani emphasized that in the event of a percentage of bonds abroad, the demand will have more because of that enjoyed by Iraq of a good reputation in terms of high obligations to repay its debts over the past years, in addition to having multiple economic resources, noting that the borrowing from home reduces the need for external borrowing as well as the percentage of interest on foreign loans (International) would be great, despite the length of repayment, while borrowing from the inside is available and accessible to the presence of large Aktnazac is invested in the private sector. 

The Finance Minister Hoshyar Zebari between in a statement, "we think of borrowing through government bond issue worth five billion sold outside Iraq ", pointing out that his ministry" has issued treasury bills for the year worth four trillion dinars, equivalent to about $ 3.5 billion in the local market on behalf of the Ministry of Oil and may issue additional authorizations of $ 1.5 billion. "

[Big_J]

GM YOTA and DV.

[yota691]

.aovernmh Economic reforms issued treasury bonds and selling of oil reserves in order to avoid budget deficit

30/03/2015 10:25 | Number of Views: 71

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Special / Source News / political editor .. Iraq start a new reform steps in the oil sector in an attempt to fill the shortfall Bmoisnth and directed shortage of liquidity as well as his issuing treasury bonds to avoid this deficit 

He said Finance Minister Hoshyar Zebari said his government plans to manage emergency funds through sales of oil reserves in advance and payment system for the first time and it will begin economic reforms to amend the oil contracts with major Western companies.

Zebari said he had not yet determined the details of the quantities and value of these sales, known in the oil industry pre-funding but Iraq needs liquidity to fund its military campaign against al organizing the Islamic state and to compensate for revenue lost because of falling world oil prices.

Zebari said that Baghdad also plans to change the way it manages its exploration and production with oil companies such as Royal Dutch Shell, BP, Exxon decades. With this shift will move Iraq for the first time to the production sharing contracts under which the proceeds are split adopt a percentage of the services that you get under which oil companies on a specific fee contracts. The Iraqi service contracts entered into when oil prices were high. Decline in world oil prices means that Baghdad is now paying for companies more often if they were working production sharing contracts.

Zebari said the amended contracts in Iraq will know the name of a revenue-sharing contracts. Such contracts are prohibited in many oil-producing countries because they consider the abandonment of national sovereign wealth to foreign companies. However, Zebari said that Iraq should seize the opportunity offered by the Islamic state of crisis for reform.

 "It's better now for us to rely production sharing contracts. We are negotiating with all international oil companies ... the federal government has begun to realize through the factual circumstances that revenue sharing is the best."

For his part, Turkish Energy Minister Taner Yildiz that deliveries of oil from Iraq through Turkey since the beginning of last year amounted to 47 million barrels, and is worth about three billion dollars.

Yildiz told reporters that he was yet loaded oil tanker 57 transferred to Turkey from Iraq.

It is noteworthy that the majority of the oil fields run by the Kurdistan region, but Baghdad used the same facilities in recent months to ship crude to the Turkish port of Ceyhan on the Mediterranean.

On the same level, the oil minister Adel Abdul Mahdi predicted that crude prices could hit $ 70 a barrel by the end of 2015 and played down the impact of emerging in Yemen on prices conflict.

The collapse in world oil prices to a sharp drop in Iraqi government revenues, prompting the OPEC member country to re-negotiate contracts with international oil companies while facing the military campaign against al-expensive «Daash» terrorist.

Abdul-Mahdi said that «oil prices reached in January to« the bottom and can not continue to decline to less than that ... is now rising slowly but steadily. Will continue to climb and possibly up to $ 70 by the end of the year. »

He said Abdul-Mahdi, that «the impact of the conflict in Yemen on oil prices will be short-term, saying,« Of course, political issues such as the crisis in Yemen could give some payment to the upward trend of prices, but it will be a temporary effect ».

Decline in world oil prices means that Baghdad pay now for companies much larger financial entitlements from production-sharing applicable to other producers decades pattern and seek to renegotiate the terms of their contracts.

And international companies operating in the southern oil fields in Iraq under the services currently based on a fixed fee for the dollar amounts of additional contracts for producing a formula that led to inflation Baghdad bills at the same time in which the collapse of oil revenues.

Abdul-Mahdi said he met with officials from the Royal Dutch Shell last Thursday to discuss the amendment held to the benefit of both sides, but stressed that an agreement with Total or is not reached to any other global company.

He added: «We are still in the negotiation phase. Is not signed anything yet with any of the major oil companies ».

Abdul-Mahdi said that «any review of the contracts will not result in significant changes in the agreements or structure and a target level of $ 9 million barrels a day of Iraqi oil production by 2020 remains intact».

The issue of Iraq is currently 2.9 million barrels per day of oil, said Abdul-Mahdi, the average exports for the month of March is heading to record three million barrels per day.

He said the oil minister said «Iraq will try to pay nine billion dollars still owed to oil companies for 2014 by increasing the amount of crude produced from Kirkuk or Basra before the end of June».

Since he became finance minister under the new government of Prime Minister Zebari Haider al-Abadi was able to get the approval of Parliament and the national budget and the conclusion of an agreement with the Kurdistan region on oil revenues after years of disputes and described as beneficial to both sides. Zebari said: "You can not build the private sector and bring in foreign investment with the adoption of an authoritarian socialist laws of old."

Earlier this month, Zebari also said that Iraq is considering issuing bonds worth five billion dollars through the bank Citi Bank and Deutsche Bank to help cover the budget deficit. He cited a monthly bill worth three billion dollars facing the Iraqi government in order to meet the needs of its population of 32 million as a sign of extreme centralization and lack of private investment.

Zebari said "this crisis .... Despite the difficulties Nlaekayaa security-related and financial aspects really led us to a lot of new ideas. Logo is that it does not become bound to the reform, but it will fail economically."

For its part, according to the Ministry of Oil to lower crude oil prices in the global market has led to a decline in fiscal revenue of the general budget of the federal 2015, which is reflected in the budget of the Federal Ministry of Oil, which has led to inadequate financial allocations to cover the payment of financial dues to foreign companies contracting and working in the oil fields Under the service contracts.

She Wazzarh- in a statement that it was a joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq to address these consequences and its negative effects on crude oil production rates in this Alhakol..oukalt: It was agreed to ask the treasury bonds worth $ 12 billion.

She added that the launch of the treasury bonds was based on Article 34 of the federal budget for the 2015 law, the first batch of which will be launched end of March to launch other payments continue, respectively.

The ministry said that the launch of these bonds in addition to the appropriations originally specified in the Ministry's budget will provide sufficient funds are available to pay dues to foreign companies contracting both those amounts that have been carried over from last year in 2014, or planned spending in the current year 2015.

She explained that this action reflects the gravity of the financial situation of Iraq and maintains reassuring for all companies operating in the country's investment environment in order to sustain the implementation of vital projects.

Meanwhile, despite the war being waged against Iraq militants gangs Daash and falling oil prices that has plagued public Bmalith still this country can rely on oil reserves to attract buyers to the first publications of international bonds in nine years. Earlier, Finance Minister Hoshyar Zebari said that the central government is discussing with Citibank and Deutsche Bank version potential for dollar bonds worth five billion dollars for five years to help them bridge the budget deficit.

It is believed a lot of fund managers that Iraq will fall short of selling such a huge amount of bonds at once especially as he did not get a credit rating from one of the major agencies. And obtain a credit rating could take months. It is true that the bond support specific oil revenues will boost investor demand but the government has not said it would do so may refuse to handcuff her hands in this way. So may be a smaller version put in perhaps between billion and two billion.

 The corruption and excessive spending in times of the rise of oil prices and financial mismanagement have all contributed to the economic crisis triggered by the organization of the Islamic state takeover of the zones in Iraq and the collapse of oil prices. Zebari said Iraq will not put pressure on the Gulf countries.