The stock market announces the launch of the circulation of national bonds issued by the Central Bank of Iraq

[danielchu]

Yes master yota untill the kurds commited the seditious act of partioning iraq the rate may even fall further!

[yota691]

Just now, danielchu said:

until the kurds committed the seditious act of partitioning Iraq the rate may even fall further!

Sorry you feel that way and you probably speaking for others that feel the same way from what I observed by some comments, but I disagree about the Kurds from my research and overall thoughts on the matter...

[Synopsis]

3 hours ago, yota691 said:

Thanks for the Breakdowns as usual Synopsis and GM, I like to point out on the legislative initiatives are already in place for both Article 140 and the HCL, which go back to the 2003 agreement which was was voted on but never implemented, until now with the actions of PM Abadi stating Federal Government oversight and presence in all matters. Borders, Ports, Oil wells, Security etc!!!  The way I see it once PM Abadi feels that he has all the piece to the puzzle in place, the legislative has his back. The one hiccup I see is the percentage of the Budget that PM Abadi and his adviser keep throwing out to the Kurds is the 12% rate, and they stated that according to the constitution which was agree upon, we are suppose to get 17%. Anyhow all these issue are being fine tuned soon to be!!!  

 

Thank You, Yota, for the well grounded comments!!! 

 

I agree the stage has been set and there are many critical supporting elements in place that just need implementation. Seems like a dance to get the last remaining pieces resolved for foreign investment to take place in Iraq to get reconstruction going and built all the necessary economic sectors in Iraq!

 

My opinion on the budget percentage is the Kurdistan region in Iraq will have to ante up more than the 250,000 barrels per day they are offering to be more like 410,000 barrels per day to meet the 12.67% of the budget since the budget 17% was based on the 550,000 barrels per day from the Kurdistan region. I suspect this ploy by both the Kurdistan region and Baghdad will ultimately lead to rooting out financial corruption in the Kurdistan region of Iraq that should, in the near future, further promote a business environment in the Kurdistan region for stable foreign investment. I am pretty sure there are highly capable and extremely interested "negotiator advisers" "helping" get the "right solution" in place for the foreign investment gates to go wide open.

 

The Best Of Your Weekend To You, Sir and All DV!

 

Go Moola Nova!

[newbieDA]

[newbieDA]

21 hours ago, 10 YEARS LATER said:

GREAT GOOOGLY MOOOGLY  ! ! !

 

Some very interesting news on Turkey Day

 

[10 YEARS LATER]

1 hour ago, newbieDA said:

 

 

Practical Jokers of the Animal Kingdom  

[newbieDA]

1 minute ago, 10 YEARS LATER said:

 

Practical Jokers of the Animal Kingdom  

 

just waiting now til they get this done, so doing funny pics anymore

 

[yota691]

Iraq plans to issue sovereign bonds worth 2 billion dollars in 2018

By

 rami

 -

November 26, 2017

 

 

 

BAGHDAD (Reuters) – Iraq plans to issue sovereign bonds worth 2 billion dollars in 2018, the central bank governor said on Sunday.
Al-Alak said in a press interview during a visit to Abu Dhabi that “foreign exchange reserves amounted to about 49 billion dollars,” attributed to the increase in oil prices in the recent period. ”
Faisal Al-Hims, Chairman and Acting Chief Executive Officer of the Iraqi Bank for Trade, said the bank has applied for a branch license in Saudi Arabia and has received verbal approval from SAMA.

[yota691]

Iraq plans to issue sovereign bonds worth 2 billion dollars in 2018

 

BAGHDAD (Reuters) - Iraq 's foreign exchange reserves stood at about $ 49 billion, the central bank governor said on Sunday, "He explained that the increase in oil prices in the recent period." For his part, Faisal Hymes, Chairman of the Board and Acting Chief Executive Officer of the Iraqi Bank for Trade, said that the bank applied for a license branch in Saudi Arabia, and he received verbal approval from the Arab Monetary Agency Saudi "Sama".       Views 259   Date Added 26/11/2017

[yota691]

A sovereign bond is a debt security issued by a national government. Sovereign bonds can be denominated in a foreign currency or the government's own domestic currency; the ability to issue bonds denominated in domestic currency tends to be a luxury that most governments do not enjoy.

[skeetdog]

Thanks Yota...Why so much lining up of international trade by a bank who's currency-worth doesn't justifies the procedures....it must have something to do with projections...

[yota691]

Iraq issues sovereign bonds worth $ 2 billion in 2018

Date of release: 2017/11/26 12:22 • 225 times read

{International: Al-Furat News} Iraq's central bank governor said on Sunday that Iraq intends to issue sovereign bonds of two billion dollars in 2018.

Governor Ali Ismail Al-Alak told Reuters during a visit to Abu Dhabi that the foreign exchange reserves amounted to about 49 billion dollars, attributed to the increase in oil prices in the recent period. 
"The bank has applied for a branch license in Saudi Arabia and has received verbal approval from the Saudi Arabian Monetary Agency (SAMA)," said Faisal Al-Hims, chairman and acting chief executive officer of the Iraqi Bank for Trade. 
On 29 November 2016, the Cabinet approved the issuance of $ 2 billion in foreign bonds

[Carrello]

On 11/24/2017 at 3:54 AM, danielchu said:

Yes master yota untill the kurds commited the seditious act of partioning iraq the rate may even fall further!

And how did the Kurds end up ? More powerful ? More leverage?

[yota691]

Baghdad plans to issue sovereign bonds worth $ 2 billion in 2018

Readers

 

 

Baghdad plans to issue sovereign bonds worth $ 2 billion in 2018

 

26-11-2017 01:55 PM

 

The Euphrates -

 

BAGHDAD (Reuters) - Baghdad plans to issue sovereign bonds worth $ 2 billion in 2018, the central bank governor said on Sunday. 

Al-Alak said in a press statement during a visit to the UAE capital Abu Dhabi today that the 'reserves of the Central Bank of Iraq from foreign exchange amounted to about 49 billion dollars, and attributed to the increase in oil prices in the recent period', according to Reuters. 

He said the bank plans to issue $ 1 billion in sovereign bonds in the next fiscal year in 2018.

[yota691]

Iraq issues sovereign bonds worth $ 2 billion in 2018   Sunday, November 26, -   +         Alsumaria News / Baghdad announced the central bank governor on the Keywords, Sunday, for the determination of Iraq issue sovereign bonds two billion dollars in 2018.  Keywords and said in a statement to news agency " Reuters ", during a visit to Abu Dhabi , said that the foreign exchange reserves amounted to about $ 49 billion , Attributed to increase to the high oil prices in the recent period.  Faisal Al-Hims, chairman and acting chief executive officer of the Iraqi Bank for Trade, said the bank had applied for a branch license in Saudi Arabia and had received verbal approval from the Saudi Arabian Monetary Agency (SAMA).

[The Englishman]

https://www.thenational.ae/business/economy/iraq-to-raise-2bn-through-sovereign-bond-in-second-half-of-2018-1.679003.

 

Iraq to raise $2bn through sovereign bond in second half of 2018

 

 

Sarmad Khan

November 26, 2017

Updated: November 26, 2017 08:24 PM

Ali Al Alaq (right), the Governor of the Central Bank of Iraq, with Faisal Al Haimus, Chairman of Trade Bank of Iraq. Antonie Robertson / The National

Iraq, Opec’s second-biggest oil producers, plans to tap the international debt market with a US$2 billion sovereign bond in the second half of 2018 as it looks to rebuild the war-torn country after years of political instability and sectarian strife, according to its central bank governor.

“It will be 2018, but first of all, we have to get the approval of [the] budget and then ministry of finance, they [will] have to plan for that [bond issuance]…. [it[ might be in the second half,” Ali Al Alaq told The National in Abu Dhabi.

The country, which has the world’s fifth-biggest oil reserves globally, had last raised $1bn through an unsupported bond in August, its second foray into the international markets this year. It raised a similar amount through a US-backed bond sold at 2.149 per cent in January 2017.

Iraq for years has battled against ISIL and its sovereign offering in August came on the heels of the country declaring victory in the battle for Mosul against the militant group, which once controlled large swathes of land in country.

The draft document of the Iraq’s 2018 budget specifies the target of a $2bn bond, Mr Al Alaq noted, without saying whether it will be raised through one deal or split over several transactions.

“It will be easy to get that [amount] because we tried that in 2017 and we attracted so many investors and there was big demand on those bonds,” he said, adding that Iraq will be mindful about how much it will raise. “You have to be careful with that."

Iraq, which is implementing a sizeable fiscal adjustment programme and running an austerity campaign, has prepared its 2018 budget on $43 to $46 barrels per day base oil price, far lower than around $60 a barrel mark where crude has traded at for the past few weeks.

“If you look at the draft of the budget for 2018, the [oil] price that we have proposed is between $43 to $46 [per barrel], despite [the current] price being more than that. That will help us to put a ceiling on our expenditure and keep increasing our domestic revenues,” Mr Al Alaq said, adding that higher crude prices mean the country will be able to more conveniently pay off its debts. “It will also give us the room for [servicing] our public debt. This is very important and we would like to give it a priority.”

Explaining the variance between $43 and $46 per barrel base oil price for the next year’s budget, he said Iraq had worked with $43 figure, although the IMF suggested that the budget could be built at a $48 a barrel price assumption, hence the government has now chosen the in-between figure of $46 a barrel.

Iraq, working with the IMF through a three-year standby agreement, is implementing measures to control inefficient expenditures while protecting its social spending. Fiscal consolidation was achieved but at a slower pace and to move the programme forward authorities plans to implement further fiscal measures in 2018 to ensure external and debt sustainability.

 

 

Mr Al Alaq, however, said that fiscal reform so far is “going well”.

They [the IMF] is comfortable with that. We are very close to their targets. Most of the criteria they have listed we have met so far."

The country, which still relies heavily on the sale of hydrocarbons for revenues, is now seeing signs of improvement in its non-oil economy.

“We have to enhance the real [GDP] sectors. It was very hard to do that as it was difficult time with the war [on ISIL]. Now we can see some signs of serious projects, serious investors and serious investments coming to the country,” he said. “That’s a positive sign for the near future.”

Iraq, which had 65 banks operating in the country as of January 2017, is also looking to restructure some of the government-controlled lenders as part of its efforts to strengthen the financial sector.

There are seven state-owned banks in the country, which dominate market share and account for the bulk of assets and credits. The financial positions of two - Rasheed Bank and Rafidain Bank - are fragile following years of quasi-fiscal operations, according to an August IMF statement on Article 1V consultations with Iraq.

Mr Al Alaq, who heads the committee that is overseeing the restructuring, said the government is now pushing to speed up the process.

“We just had a meeting a few days ago. Everybody was waiting for the financial statements to come from the international firm [appointed to audit the banks] and without that you can’t plan anything,” he said adding that there are still a “few items to be fixed in the financial statements” of these banks.

“That’s what we are trying to do right now: separate those bad accounts. There are also operational issues to be resolved to improve the performance of the banks,” he added.

“After cleaning up the balance sheets, it’s open. There are a few options that we will go with. Those options include everything,” he said when asked if the lenders will be merged or opened up to foreign investors.

[mylilpony]

I love this part!!!

 

“After cleaning up the balance sheets, it’s open. There are a few options that we will go with. Those options include everything,” he said when asked if the lenders will be merged or opened up to foreign investors.

 

Remember these banks were not absolved they actually had two sets of books when shabbs was there. In order to correct those balance sheets they need to add purchase power to the dinar, only then will the balance sheets actually be balanced, and the debts the banks had previously to our invasion will once again be in the red..

 

[mylilpony]

11 minutes ago, mylilpony said:

I love this part!!!

 

“After cleaning up the balance sheets, it’s open. There are a few options that we will go with. Those options include everything,” he said when asked if the lenders will be merged or opened up to foreign investors.

 

Remember these banks were not absolved they actually had two sets of books when shabbs was there. In order to correct those balance sheets they need to add purchase power to the dinar, only then will the balance sheets actually be balanced, and the debts the banks had previously to our invasion will be gone and their capital will be way ahead of the amount that the imf wants them to be at. That is why they are calling for all state owned banks to be balanced. Just like the bank of international settlements. When we invaded Iraq's money went to the bottom of the bucket, and once it rv's or gains its value again then the debt that the bis holds will then be in the positive again..

 

 

That is what i meant to say ..lol

 

[ChuckFinley]

Thanks Englishman for posting.  

[yota691]

NOVEMBER 26, 2017 / 4:35 AM / A DAY AGO

UPDATE 1-Iraq plans $2 bln bond issue, Trade Bank of Iraq to establish Saudi branch

 

Reuters Staff

2 MIN READ

•  
•  

By Stanley Carvalho

 

ABU DHABI, Nov 26 (Reuters) - Iraq is planning a $2 billion sovereign bond issue in 2018, the central bank governor said on Sunday, after the country successfully returned to the international debt market by selling a $1 billion bond in August.

 

“The economy is seeing a recovery with the increase in oil prices and measures of the government on financial consolidation,” Ali Ismail al-Alak told Reuters after the opening of Trade Bank of Iraq’s representative office in Abu Dhabi.

On the sovereign bond, he said: “It is in process, awaiting parliament approval. It is to cover the budget deficit.”

Iraq’s budget deficit, according to a draft budget, is running at around 18 trillion to 19 trillion Iraqi dinars ($15.4 billion to 16.3 billion), he added.

The country’s $1 billion bond sale in August was its first international debt issuance as a stand-alone credit since 2006, and an attempt to put decades of turmoil behind it.

Alak said Iraq’s foreign currency reserves had risen to $49 billion currently from $46.5 billion at the end of 2016, helped by the recent increase in oil prices.

On the Iraqi banking sector, he said it had become more stable but there was no growth. On average, banks will make a “reasonable profit” in 2017, Alak said.

 

Meanwhile, Trade Bank of Iraq (TBI), a state-owned bank established to facilitate the country’s foreign trade, has applied for a branch licence in Saudi Arabia and obtained verbal approval from the Saudi central bank, said Faisal al-Haimus, chairman and acting chief executive of TBI. TBI has 24 branches in Iraq.

After 25 years of troubled relations starting with the Iraqi invasion of Kuwait in 1990, Saudi Arabia and Iraq began taking steps towards better relations in 2015. In October this year, Saudi energy minister Khalid al-Falih made a high-profile visit to Iraq and state-owned Saudi Arabian Airlines announced it would start flying regularly to the country. (Writing by Saeed Azhar; Editing by Andrew Torchia)

[DetroittoAZ]

 

[gregp]

Great video. Thanks. 

[DetroittoAZ]

 

[yota691]

BIB opens a representative office in Abu Dhabi

 

Economy News Baghdad: The Iraqi Trade Bank (EBB) opened yesterday a representative office in Abu Dhabi to become the first Iraqi commercial bank to be launched in the UAE and the first international branch of the bank outside the Republic of Iraq. The Bank's representative office is located at the Abu Dhabi International Market on Al-Mariya Island, strategically located in the heart of Abu Dhabi's financial center. This excellent location will contribute to establishing the Bank of Iraq as a leading and reliable institution among international banking institutions and will help the bank reach the network of international banks and banks around the world, according to the Emirates News Agency. Through its new representative office in Abu Dhabi, the Iraqi Trade Bank will be able to enhance investment opportunities within Iraq and to build and establish working relationships and cooperation with the most important banking and financial institutions in the UAE. The opening ceremony of the new representative office was attended by Dr. Ali Al Alaq, Governor of the Central Bank of Iraq, Ahmed Al Sayegh, President of Abu Dhabi Global Market, Faisal Al-Hims, General Manager and Chairman of the Board of Directors of the Iraqi Bank for Trade and Dr. Raad Mohammad Rashad Alousi, Along with a number of senior bank officials. The opening of the first representative office of the Iraqi Trade Bank in the UAE is an exceptional event in the history of the Bank and is important for the financial sector in Iraq and the Republic of Iraq in general. This important step marked the entry of the first Iraqi commercial bank to the UAE, A leading global financial center. For his part, Faisal Al-Hims said that the Iraqi Trade Bank, since its establishment in 2003 and until today, has been able to achieve much for the State of Iraq and its people and to enhance the satisfaction of customers and partners. The opening of the representative office in Abu Dhabi reaffirms the leadership and success of the Bank . The Iraqi Trade Bank was established in July 2003 to help rebuild Iraq through international trade facilitation after the end of the UN oil-for-food program. Since then, the Bank has established a working relationship and joint cooperation with 134 leading global banks in 63 cities in 39 countries around the world. The total assets of the Iraqi Trade Bank by the end of 2016 amounted to 19.7 billion dollars, while the net profit amounted to 453.9 million dollars. The bank has 25 branches distributed throughout Iraq.         Views 63   Date Added 11/27/2017

[Wiljor]

IRAQ TO RAISE $2BN THROUGH SOVEREIGN BOND IN SECOND HALF OF 2018

The country is preparing its 2018 budget at proposed oil price of between $43 to $46 per barrel

Iraq, November 28, 2017  Iraq, Opec’s second-biggest oil producers, plans to tap the international debt market with a US$2 billion sovereign bond in the second half of 2018 as it looks to rebuild the war-torn country after years of political instability and sectarian strife, according to its central bank governor. “It will be 2018, but first of all, we have to get the approval of [the] budget and then ministry of finance, they [will] have to plan for that [bond issuance]…. [it[ might be in the second half,” Ali Al Alaq told The National in Abu Dhabi. The country, which has the world’s fifth-biggest oil reserves globally, had last raised $1bn through an unsupported bond in August, its second foray into the international markets this year. It raised a similar amount through a US-backed bond sold at 2.149 per cent in January 2017. Iraq for years has battled against ISIL and its sovereign offering in August came on the heels of the country declaring victory in the battle for Mosul against the militant group, which once controlled large swathes of land in country. The draft document of the Iraq’s 2018 budget specifies the target of a $2bn bond, Mr Al Alaq noted, without saying whether it will be raised through one deal or split over several transactions. “It will be easy to get that [amount] because we tried that in 2017 and we attracted so many investors and there was big demand on those bonds,” he said, adding that Iraq will be mindful about how much it will raise. “You have to be careful with that.' Iraq, which is implementing a sizeable fiscal adjustment programme and running an austerity campaign, has prepared its 2018 budget on $43 to $46 barrels per day base oil price, far lower than around $60 a barrel mark where crude has traded at for the past few weeks. “If you look at the draft of the budget for 2018, the [oil] price that we have proposed is between $43 to $46 [per barrel], despite [the current] price being more than that. That will help us to put a ceiling on our expenditure and keep increasing our domestic revenues,” Mr Al Alaq said, adding that higher crude prices mean the country will be able to more conveniently pay off its debts. “It will also give us the room for [servicing] our public debt. This is very important and we would like to give it a priority.” Explaining the variance between $43 and $46 per barrel base oil price for the next year’s budget, he said Iraq had worked with $43 figure, although the IMF suggested that the budget could be built at a $48 a barrel price assumption, hence the government has now chosen the in-between figure of $46 a barrel. Iraq, working with the IMF through a three-year standby agreement, is implementing measures to control inefficient expenditures while protecting its social spending. Fiscal consolidation was achieved but at a slower pace and to move the programme forward authorities plans to implement further fiscal measures in 2018 to ensure external and debt sustainability. Mr Al Alaq, however, said that fiscal reform so far is “going well”. They [the IMF] is comfortable with that. We are very close to their targets. Most of the criteria they have listed we have met so far.' The country, which still relies heavily on the sale of hydrocarbons for revenues, is now seeing signs of improvement in its non-oil economy. “We have to enhance the real [GDP] sectors. It was very hard to do that as it was difficult time with the war [on ISIL]. Now we can see some signs of serious projects, serious investors and serious investments coming to the country,” he said. “That’s a positive sign for the near future.” Iraq, which had 65 banks operating in the country as of January 2017, is also looking to restructure some of the government-controlled lenders as part of its efforts to strengthen the financial sector. There are seven state-owned banks in the country, which dominate market share and account for the bulk of assets and credits. The financial positions of two - Rasheed Bank and Rafidain Bank - are fragile following years of quasi-fiscal operations, according to an August IMF statement on Article 1V consultations with Iraq. Mr Al Alaq, who heads the committee that is overseeing the restructuring, said the government is now pushing to speed up the process. “We just had a meeting a few days ago. Everybody was waiting for the financial statements to come from the international firm [appointed to audit the banks] and without that you can’t plan anything,” he said adding that there are still a “few items to be fixed in the financial statements” of these banks. “That’s what we are trying to do right now: separate those bad accounts. There are also operational issues to be resolved to improve the performance of the banks,” he added. “After cleaning up the balance sheets, it’s open. There are a few options that we will go with. Those options include everything,” he said when asked if the lenders will be merged or opened up to foreign investors. thenational   http://iraqdailyjournal.com/story-z16280526