An international report revealed that Iraq would find buyers for its bonds only if they pay very high dividends, while the standard & poor's allotted rating (-B) credit for Iraq this month no less than six degrees Foundation said the investment classification the security risk in Iraq among the highest level among all States that classified institution on par with Egypt and the two preceding Greece.
Economist asserts Dr. maytham laibi that Iraq will lose the long-term safety requirements cause upheavals that Baghdad sell commodity oil deteriorating terms of Exchange, for industrial goods, which keeps prices high.
Winfred said in an interview to "range" on Friday, that "Iraq faces a continuing decline in revenues, increasing expenditures and uncontrollable for several reasons, including security and military problems, adding to the woes in consumer spending and waste and corruption, poor planning, and is what causes the growth of real deficit in the budget, which requires financing this deficit borrowing either external or internal."
Baghdad has organized promotional presentation to investors last week to a series of dollar sovereign bond issues, which hopes to be able to measure up to six billion dollars.
Winfred adds, that "borrowing, particularly in dollar bonds, long-term financial burdens on the economy both in principal or interest, which means that in the long term we will again bear the burdens of debt, as the oil resources, even if prices rose, part of which will go to repay these loans and the burden of, and the most difficult is that these readers z go to finance consumer spending , Which means we are facing dangerous issue of resource recycling from industrial countries to us and then return them.
An international report has confirmed the approaching return obligation opposite exchanges ensure that Iraq used in five-year sovereign debt insurance from the risk of default from its highest level in nearly six years rose 77 basis points to 577 basis points.
The Economist is following the "deterioration of security conditions, in addition to military adoption of Iraq for oil, which is a high-risk commodity economy, led Iraq to fall under a so-called sovereign risk, which haven't otherwise grant B-evaluation, an evaluation of low to mean that Iraq faces problems of inability to pay.
It maximizes risk domestic instability in global market environment and trend expected to start raising u.s. interest rates probably starting this month.
However, reducing the potential risks of the oil industry in Iraq's second largest oil producer in OPEC.
Iraq has raised crude oil ghantag to 3.80 million barrels per day in June from 3.05 million barrels a year earlier.
Factors that slow increase in oil production, bureaucratic hurdles and security concerns, insufficient pipeline and storage capacity.
He said RAM Mohan, Director of the Abu Dhabi investment company which holds the bond prospectus review before deciding on the investment decision in this version "Iraq now has foreign exchange reserves nearing $ 65 billion that surely contributes to high production increase." Therefore, fund managers say that Iraq will not find buyers for its bonds only if they pay very high dividends.