Iraq begins a campaign tomorrow to borrow six billion dollars to cover the deficit in the fiscal budget

09/09/2015 10:08

Tomorrow Press / Baghdad: banking sources said that the Iraqi government will promote the campaign on Thursday for the first international bond issue in nine years as it seeks to finance a budget deficit because of falling oil prices and the war against gangs Daash.

She said the agency "Reuters", that "Baghdad want to combine up to six billion dollars in a series of versions of dollar bonds, but the first version is expected to be much smaller."

He said Mrtbo versions of Citigroup, Deutsche Bank, JP Morgan arranging version and will begin meetings with investors in the United Kingdom and the United States.

She added that "despite the political risks in Iraq are expected to contribute to Baghdad put the largest oil producer in the Organization of Petroleum Exporting Countries as the second (OPEC) to reassure buyers on entitlements and the large oil fields in the south of the country was not exposed to fight directly in addition to that Iraq adopts an ambitious plan will continue for several years to increase its production of oil. "

It is expected that Baghdad pay a high price for borrowing with a 10.37 percent return on Iraq's dollar bonds due in 2028.

Prior to the sale this month, Iraq won the first sovereign credit rating gave him his where Bretton Standard & Poor's and Fitch rating B- a rating below six degrees of investment grade.

The government expects a budget deficit this year, about $ 25 billion in budget worth about $ 100 billion.