Iraq looking to get credit rating
Iraq looking to get credit rating
In order to issue denominated foreign bonds in dollars
BAGHDAD – Mostafa Hashemi
said Iraq’s intention to issue IOUs sovereign, internal and external, for the purpose of finding funding to cover the budget, which is estimated at about a quarter of the amount of the budget for the current year’s 119 trillion and 585 billion and 322 million and 783 000 dinars deficit.
According to Article ( 2 / II / a) of the budget law, the amount of the deficit is covered from internal and external borrowing, and because Iraq lacks the credit rating of the three global agencies, it speed up access to this category for the purpose of issuing foreign bonds fact that the tenure for rating supports its strength in international markets.
In This connection between economic academic d. Essam Mohamed importance of obtaining the credit rating of sovereign bonds (external) by saying that the degree classification give investors a clear view of a road map of their investments in the country, especially on the subject of the bond because it determines that a range of circulation in the global bond markets after identifying risks.
He said Mohammed in an interview for the “morning” : that Iraq is capable of issuing such bonds because it possesses previous experience when called Paris Club bonds years ago and is due for repayment in 2028 year.
The Finance Minister Hoshyar Zebari said that Iraq is considering denominated international bond issue in dollars for five years worth of five billion dollars to help him Plug in the budget.
Wade Mohammed is the view of experts and specialists that Iraq enjoys a good reputation in terms of its financial obligations and possesses resources that qualify it paid off its foreign debt at maturity.
He was economic adviser to Prime Minister Dr. The appearance of Mohammed Saleh said the “morning” earlier: that Iraq lacks the sovereign credit rating but bonds issued by to extinguish the Paris Club debt rated close to those countries that have such a rating awarded Iraq.
He explained that the interest rate and the discount rate on the Iraqi offered bonds in Earlier it is approaching the price of some countries that have rated sovereign, pointing out that the classification of Iraq’s credit, although he did not officially yet determined, Vhually probably at a temperature -B returned him well and cause an indication of optimism, saying: that this place is an official but set the intensity of turnout on the purchase of Iraqi bonds raised by accordance with the Paris Club and sold in global markets, amounting to $ 2.7 billion annual steady at 5.8 percent interest rate.
so it looked Committee on Economic Affairs with the competent authorities to issue external loan bonds and influence positive to get a credit rating from international rating agencies.
came that by hosting the Committee for each of the Chairman of the Finance Committee Dr. Ahmed Chalabi and head of the economic and investment commission Jawad al-Bolani, the Parliamentary, in the presence of financial banks representatives (Cleary Office Gottlieb Steen & Hamilton LLP, Citibank and Deutsche bank and Jp Morgan), to discuss the article (2 / Second / a) of the Federal General Budget about the version of the external loan bonds law and what the expected results of the issuance of those bonds.
As discussed the positive impact resulting from obtaining a credit from international rating agencies rating to support the economy and the construction and reconstruction in Iraq by increasing the financial resources of the state derived from These bonds.
The Committee on Economic Affairs was formed under the chairmanship of Deputy Prime Minister D.roژ Nuri Shaways and membership of ministers (finance, planning, commerce, agriculture) and Chairman of the National Authority for Investment and Advisor to the Prime Minister for Economic Affairs and Deputy Secretary General of the Council of Ministers of Finance and Administrative Affairs and the Director of the Legal Department of the Office Prime Minister.