The appearance of Mohammed Saleh: No problem in the contract to pay forward

[SocalDinar]

Outlook upgrade could help push Iraq's economic evolution to its next step

Dawn Kissi | @dawnkissi

4 Hours AgoCNBC.com

16

SHARES

Phototreat | iStock/360 | Getty Images

Baghdad

War-torn Iraq recently got an unexpected boost on its way to becoming an investment hot spot, which may take its next step sooner than conventional wisdom suggests.

Even as military forces wage a fierce offensive against ISIS, global ratings agency Fitch upgraded last month Iraq's outlook to stable, based largely on the country's improving public finances.

To be sure, Iraq's B+ credit rating is still deeply entrenched in speculative, or junk territory. The low rating reflects what Fitch analysts called political risk and instability associated with the conflict-ridden country that's "among the highest faced by any sovereign rated by Fitch."

 

Yet as a marker for big institutional buyers like hedge funds and sovereign wealth arms, Fitch's vote of confidence could mark the start of a broader shift among investors about Iraq's long-term potential. The upgrade could be pivotal for a country still considered besieged, but considered by a handful of savvy market watchers to be a potential diamond in the rough.

"Some analysts say that investors believe that with solid oil reserves and other sectors to build upon, Iraq could have serious growth potential," said Stephen Simonis Sr., chief currency consultant at online currency broker FXDD Global.

"Clearly this can be looked at from either side, as the willing investor will point out the huge risk/reward possibility as the upside is very enticing," Simonis told CNBC. "The doubting investor will say the region remains too unstable and the situation remains far too volatile."

Azad Lashkari | Reuters

Kurdish Peshmerga forces advance in the east of Mosul to attack Islamic State militants, October 17, 2016.

Iraq remains a country to approach with caution, analysts say, roiled by an ISIS insurgency and civil strife. Yet Fitch's revised outlook could be a green light for buyers of Iraq's assets, especially at a time when smaller institutional and private investors are seeking long-term opportunities.

In fact, Iraq's stock market has already been running with at full steam since at least last year, with investors discounting an end to a bloody conflict that's lasted since the 2003 invasion. Some are looking ahead to the reallocation of military spending and the potential boost to infrastructure spending and economic revival.

While foreigners have been mostly absent from the equity market for the month of March, some are already looking for signs that the Fitch decision could reverse this dynamic.

"Overall, foreign interest in Iraq continues to go through a transformational change in the eyes of global institutional investors," Ahmed Tabaqchali, chief investment officer of Asia Frontier Capitals Iraq Fund, told CNBC.

In fact, Iraq's sovereign risk premium has narrowed in an environment of rising yields, just after the country tapped capital markets with a second $1 billion bond offering.

"It seems logical to conclude that this implies favorable interest in Iraq and that it would likely be followed by foreign direct investment and eventually by equity inflows," Tabaqchali said.

Although Iraq joined other OPEC members in a production cut — a challenge for the country's oil-reliant economy — some analysts believe the oil sector is managing to stay afloat in an environment of lower prices.

http://www.cnbc.com/2017/03/30/outlook-upgrade-could-help-push-iraqs-economic-evolution-to-its-next-step.html

 

[Mask Phantom]

Evolution to its highest level. Let's succeed Iraq. The world is waiting. 

[jeepguy]

55 minutes ago, SocalDinar said:

. Yet Fitch's revised outlook could be a green light for buyers of Iraq's assets, especially at a time when smaller institutional and private investors are seeking long-term opportunities

green light for Iraq`s  assets <----  gold , minerials,  ----- >  =`s  the need for dinar , which private investors will need too carry out  business ,  while in Iraq  and the small investor will want too purchase dinar too hold ,  which will cause a flood of speculation on the dinar , and will hopefully get  the value too rise

[ChuckFinley]

Thanks SD for bringing this over. Always like to see good news.   

[nannab]

Thank you Social Dinar.  Come on Iraq the world awaits your greatness !

[Boozer]

5 hours ago, jeepguy said:

a lot of talk about green light for Iraq`s  assets <----  gold , minerials,  ----- >  =`s  the need for dinar , which private investors will need too carry out  business ,  while in Iraq  and the small investor will want too purchase dinar too hold ,  which will cause a flood of speculation on the dinar , and will hopefully get  the value too rise

Yes and I just got a BIG rise ,, put this with Trumps Son n law with the UN in Iraq this week, I don't  get excited about this ride, But Son n Law in Iraq,, I'm jumping with Joy. and the fact Sab is now allowed back in Iraq,, He$$  Yes Iam Happy  I'm going to do a Happy dance.. Looking good for this to be our month. a lot of talk about oil this week. UN puts them in article 8. I see HCL next Sab back in town  RV BABY

Edited April 3, 2017 by Boozer

[yota691]

This confidence boost may be the starting pistol on Iraq's road to becoming a market economy

Dawn Kissi

CNBC 2 April 2017

 

 

War-torn Iraq recently got an unexpected boost on its way to becoming an investment hot spot, which may take its next step sooner than conventional wisdom suggests.

Even as military forces wage a fierce offensive against ISIS, global ratings agency Fitch upgraded last month Iraq's outlook to stable, based largely on the country's improving public finances.

To be sure, Iraq's B+ credit rating is still deeply entrenched in speculative, or junk territory. The low rating reflects what Fitch analysts called political risk and instability associated with the conflict-ridden country that's "among the highest faced by any sovereign rated by Fitch."

Yet as a marker for big institutional buyers like hedge funds and sovereign wealth arms, Fitch's vote of confidence could mark the start of a broader shift among investors about Iraq's long-term potential . The upgrade could be pivotal for a country still considered besieged, but considered by a handful of savvy market watchers to be a potential diamond in the rough .

"Some analysts say that investors believe that with solid oil reserves and other sectors to build upon, Iraq could have serious growth potential," said Stephen Simonis Sr., chief currency consultant at online currency broker FXDD Global.

"Clearly this can be looked at from either side, as the willing investor will point out the huge risk/reward possibility as the upside is very enticing," Simonis told CNBC. "The doubting investor will say the region remains too unstable and the situation remains far too volatile."

 

Iraq remains a country to approach with caution, analysts say, roiled by an ISIS insurgency and civil strife. Yet Fitch's revised outlook could be a green light for buyers of Iraq's assets, especially at a time when smaller institutional and private investors are seeking long-term opportunities.

In fact, Iraq's stock market has already been running with at full steam since at least last year, with investors discounting an end to a bloody conflict that's lasted since the 2003 invasion. Some are looking ahead to the reallocation of military spending and the potential boost to infrastructure spending and economic revival.

While foreigners have been mostly absent from the equity market for the month of March, some are already looking for signs that the Fitch decision could reverse this dynamic.

"Overall, foreign interest in Iraq continues to go through a transformational change in the eyes of global institutional investors," Ahmed Tabaqchali, chief investment officer of Asia Frontier Capitals Iraq Fund, told CNBC.

In fact, Iraq's sovereign risk premium has narrowed in an environment of rising yields, just after the country tapped capital markets with a second $1 billion bond offering.

"It seems logical to conclude that this implies favorable interest in Iraq and that it would likely be followed by foreign direct investment and eventually by equity inflows," Tabaqchali said.

Although Iraq joined other OPEC members in a production cut — a challenge for the country's oil-reliant economy — some analysts believe the oil sector is managing to stay afloat in an environment of lower prices.

— Reuters contributed to this article.

[yota691]

The appearance of Mohammed Saleh: No problem in the contract to pay forward

05/04/2017 0:00    Baghdad / Alaa al-Tai  Said the appearance of Mohammed Saleh, an economic adviser to Prime Minister Haider al-Abadi, it is not a problem to contract payment forward with investing companies, noting that the amounts for the projects payment on credit value across the provinces so far amounted to $ 5 billion, while the report of the Network "CNBC" American concluded that confidence Fitch made by the international Foundation for the credit rating of the Iraqi economy last month, which will have a positive impact on investment in Iraq. Saleh pointed out in a statement to local media , including the "morning", said that "one of the means contained in the budget law the right of implementation of projects to pay on credit , " asserting that "payment projects on credit are projects of vital and prejudice in the lives of citizens , such as the implementation of hospitals and stations of water projects" .  Saleh added that " the amount of payment on credit projects have been initiated in the implementation generality of the provinces with investment companies, amounted to $ 5 billion, equivalent to 5 trillion Iraqi dinars."  Economic Advisor to the Prime Minister pointed out that " the Iraqi market is a free market, but it does not mean freedom of ownership," pointing out that the dollar is witnessing an offer and demand substantially the Iraqi Central Bank , the dollar is pumped dramatically in the Iraqi market in order to reduce any problem with the dollar and the stability of its price . "  in the same context, the report of the network" CNBC "American concluded that the confidence expressed by Fitch international Foundation for the credit rating of the Iraqi economy last month , which will have a positive impact on investment in Iraq.  She wrote the network in a report that Fitch gave Iraq rating" + B "with a positive outlook for the future J believes that it will be stable, although it is fighting a war against al Daesh terrorist, indicating that Fitch placed Iraq at the level of "+ B" due to political risks and instability caused by conflicts going through.  But it pointed out that the positive for the development of Iraq 's future outlook will be have a positive impact among investors who fear pumping their money.  he said the financial expert Stephen Simonis: Iraq can raise growth rates, thanks to its oil reserves and other sectors that can be relied

[235snack]

RV the currency and see how fast those with a large amount of dinar reinvest into Iraq.  I am sure those with large amounts of dinar, and making a great deal of profit on the RV, will want to reinvest to make even more money.

[Bama Girl]

Encouraging article. Hope Mosul is completely eradicated of Isis before the end of the year. 

[sandfly]

Thanks 

[ChuckFinley]

"Investment hot spot" - stand by for action, this is not a drill.  

[bkeiller]

 

http://www.tradingeconomics.com/iraq/rating

Iraq | Credit Rating

Standard & Poor's credit rating for Iraq stands at B- with stable outlook. Fitch's credit rating for Iraq was last reported at B- with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Iraq thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for Iraq as reported by major credit rating agencies. 4/8/2017

 

Agency	Rating	Outlook	Date
Fitch	B-	stable	Mar 13 2017
TE	25	stable	Apr 16 2016
IE	25	stable	Apr 16 2016
Fitch	B-	negative	Mar 03 2016
S&P	B-	stable	Sep 03 2015
Fitch	B-	stable	Aug 07 2015

[nannab]

Thank you bkeiller.

[ChuckFinley]

We should see that improve in the next go around.  

[Laid Back]

Iraq is own his way to a market economy.

Go RV

Go 2017