Iraq's IMF Talks Make Bonds Best in Mideast After Cancelled Sale

[yota691]

Iraq's IMF Talks Make Bonds Best in Mideast After Cancelled Sale

Arif Sharif |  28-10-2015, 10:31 AM  | Iraq |

 

AFP

Iraq’s bonds fell in September after the government announced plans for a debt issuance

Iraq’s government bonds are beating Middle Eastern peers as OPEC’s second-biggest oil producer plans talks with the International Monetary Fund for more aid after abandoning a debt sale.

The $2.7 billion securities due 2028 were poised for their first monthly increase since April after the yield dropped 77 basis points in October to 9.54 per cent on Tuesday. That compares with an nine basis-point decline in the average yield on Middle East bonds, JPMorgan Chase & Company indexes show.

Iraq’s bonds fell in September after the government announced plans for a debt issuance, prompting traders to sell the existing securities in the hopes of buying the new, higher- yielding paper. The government cancelled the offering after potential investors, encouraged by a spike in the nation’s credit risk, demanded higher interest rates than it was willing to pay, renewing demand for its outstanding debt. The bonds also rallied on Iraq’s plan to meet with the International Monetary Fund for more funds.

The "bonds were under pressure due to speculation of a new issuance," but "we see the selloff as overdone, so expect more upside from here," said Morten Bugge, chief investment officer at Kolding, Denmark-based at Global Evolution, which manages about $2.5 billion of emerging market debt and holds Iraqi bonds. Planned talks with the IMF has also boosted demand, he said.

The Washington-based lender, which has already extended $1.25 billion in emergency assistance to Iraq, plans to send a team to the country soon to help create a framework to tackle its mounting challenges, Masood Ahmed, the fund’s director of the Middle East and Central Asia department at the IMF, said last week. The program under discussion would help Iraq receive aid from lenders, including the World Bank, and reassure prospective investors, Ahmed said.

The cost of insuring Iraq’s debt against default surged 462 basis points this year to 830 basis points. The nation’s economy has buckled under the strain of its ongoing battle with Islamic State militants and a 45 per cent drop in Brent crude prices in the past 12 months.

Bloomberg News

 

[SocalDinar]

Iraq’s bonds fell in September after the government announced plans for a debt issuance

Iraq’s government bonds are beating Middle Eastern peers as OPEC’s second-biggest oil producer plans talks with the International Monetary Fund for more aid after abandoning a debt sale.

The $2.7 billion securities due 2028 were poised for their first monthly increase since April after the yield dropped 77 basis points in October to 9.54 per cent on Tuesday. That compares with an nine basis-point decline in the average yield on Middle East bonds, JPMorgan Chase & Company indexes show.

Iraq’s bonds fell in September after the government announced plans for a debt issuance, prompting traders to sell the existing securities in the hopes of buying the new, higher- yielding paper. The government cancelled the offering after potential investors, encouraged by a spike in the nation’s credit risk, demanded higher interest rates than it was willing to pay, renewing demand for its outstanding debt. The bonds also rallied on Iraq’s plan to meet with the International Monetary Fund for more funds.

The "bonds were under pressure due to speculation of a new issuance," but "we see the selloff as overdone, so expect more upside from here," said Morten Bugge, chief investment officer at Kolding, Denmark-based at Global Evolution, which manages about $2.5 billion of emerging market debt and holds Iraqi bonds. Planned talks with the IMF has also boosted demand, he said.

The Washington-based lender, which has already extended $1.25 billion in emergency assistance to Iraq, plans to send a team to the country soon to help create a framework to tackle its mounting challenges, Masood Ahmed, the fund’s director of the Middle East and Central Asia department at the IMF, said last week. The program under discussion would help Iraq receive aid from lenders, including the World Bank, and reassure prospective investors, Ahmed said.

The cost of insuring Iraq’s debt against default surged 462 basis points this year to 830 basis points. The nation’s economy has buckled under the strain of its ongoing battle with Islamic State militants and a 45 per cent drop in Brent crude prices in the past 12 months.

Bloomberg News

- See more at: http://www.businessweekme.com/Bloomberg/newsmid/190/newsid/1412/Iraqs-IMF-Talks-Make-Bonds-Best-in-Mideast-After-Cancelled-Sale#sthash.Nr6edrjA.dpuf

Edited October 28, 2015 by SocalDinar

[sandfly]

THANKS

[SnowGlobe7]

Being the best in the slow class does not make you .... ok never mind you get the drift...

 

Come on Iraq....RV at a minimum of a us DIme and you have INSTANT credibility!!!!

[bigwave]

(IraqiNews.com) Baghdad – The International Monetary Fund announced on Wednesday, that it may give Iraq a large loan in 2016 to help it achieve financial stability, adding that Baghdad is not in danger of running out of cash.

Director of the Middle East and Central Asia Department of the Fund, Masood Ahmed, said in a statement published by “Reuters” and followed by IraqiNews.com, “a team of the Fund will discuss with Iraqi officials ways of setting up a program to Baghdad to monitor the economic policies of the country.”

Ahmed added, “The Fund may give Iraq a large loan in 2016 to help it achieve financial stability at a time when Baghdad suffers because of falling oil prices and the war being waged against ISIS.”

http://www.iraqinews.com/business-iraqi-dinar/baghdad-not-currently-danger-running-cash-says-international-monetary-fund/

[Flamtap]

Iraq is not suffering. The people of Iraq are suffering due to the antics of the government dragging their feet. Part of the New World Order I guess.........just my own opinion, 

[Rasica]

Thats right. The day may come when someone goes into a grocery store in Iraq with a 25K note and ask for change. The teller

will say I do not have enough, you'll have to go to the bank and exchange first for lower notes.

[DFlat7]

It also might be a sneaky way of the IMF preparing for the RV? Ya think? Maybe? It's a thought....

[Laid Back]

Iraq is working under the guidelines of the IMF and WB.

The dinar will raise.!

Go Iraq

Go Abadi

Go reforms

Go important laws

Go IMF

Go WB

Go CBI

Go dinar

Go increase exchange rate

Go $1:1

[Big_J]

BUMP!

[Officiallytook]

GO 3 DOLLARS TO ONE DINAR!

Exactly

[ezrapound]

Exactly

Yeah. What they said . Even 1 to 1 would be fabulous!

[1lucdog]

I like $3:53  it's balanced and symmetrical and   well, we will get what we get...and probably it will still be worth it all...That's it, my one and only comment on a rate     From my lips to His ears....    Have a wonderful wonder filled weekend everyone...

[yota691]

Expert: restricted movement of the Iraqi capital to "loans" and the deficit will continue for 3 years

Vmnaqsat economy

 Since 10/31/2015 13:20 pm (Baghdad time)

Special - scales News

Said economist Abdul Hassan al-Shammari, Saturday, international loans that would be a major burden on the future of Iraq and its budget as the fiscal deficit will continue in the next three years, while noting that oil prices will continue to fall through 2016.

Al-Shammari said L / scales News /, that "borrowing from international banks and the International Monetary Fund or the World Bank are under certain conditions impacted on economic policy for Iraq," stressing that "international loans lead to a restriction of the movement of Iraqi money."

"The reason for borrowing from the International Monetary Fund is achieved fiscal deficit by drawing the budget for 2016, reaching the deficit of $ 23 trillion," stressing that "the deficit is very large compared to prices lower oil and that will continue to fall through 2016 attributing the cause that production is higher than demand. "

He noted that "the loans will be a significant burden on Iraq and on the future budget as the fiscal deficit will continue in the next three years," noting that "the deficit will Sakpl Iraq very heavy debts lead to a large fiscal deficit in the coming years and therefore the Iraqi budget will not be able to fill benefits and loans. "

He said economic expert beautiful behalf, L / scales News / earlier, that "Iraq is able to repay the borrowed from the World Bank earlier this month, in four years, indicating the importance of finding sources of income rather than relying on oil and taxes." Ended 29/4 e