Iraq suspended plans to issue intern'l bonds to high interest rate (expanded article)
Iraq suspended plans to issue international bonds to high interest rate
BAGHDAD / Center Brief for the Iraqi Media Network (IMN) - and the Ministry of Finance announced that Iraq had halted plans to issue international bonds because the yield to be paid will be very high.
According to the Deputy Minister of Finance Fadel Prophet said, "Finance Minister Hoshyar Zebari ordered a halt to bonds because the interest rate will be high."
Prophet did not give further details and it was unclear if it was possible to re-open bonds rely on external borrowing.
The Undersecretary of the Ministry empty Prophet stressed that the Ministry of Finance did not jeopardize the province of Basra Oil-for-issuing financial bonds worth five billion dollars, noting that this is "not true."
Prophet said that "the government in the event issued securities should give a guarantee against which the sovereign and not oil," noting that "the Ministry of Finance continuously give sovereign guarantees for investors in different areas, including the field of oil."
The Prophet said that "financial bond issuance resolution of the validity of the Council of Ministers has been approved by the House of Representatives in the federal budget, and the Ministry of Finance is the entity responsible for its implementation."
Iraq and commissioned three major banks process the order are Citigroup, Deutsche Bank, JP Morgan Chase, but many institutional investors reluctant to risk.
The Finance Minister Hoshyar Zebari and his accompanying delegation, held late in the evening on Saturday at the headquarters of the International Conference of the World Bank and the International Monetary Fund in Lima with Ambassador Lisa Kubiski US Deputy Assistant Secretary of State for Financial finance and international development.
During the meeting, they discussed the Iraqi - US relations, the current financial and economic conditions and the government's efforts to bridge the fiscal deficit and the provision of funds and international loans from international financial organizations.
And accept the Minister of Finance of Iraq's growing relations with both the World Bank and the IMF, projects and future plans and the cost of supporting and helping the United States government in the face of terrorism Daash and to overcome the current financial difficulties.
And was a member of the Board of Directors of the Central Bank Majid picture confirmed that the global markets are able to receive the bonds that the government will be launched this year, noting that the international reputation of Iraq of good financial terms, despite all the circumstances and to the commitment of the government to pay the debt incurred by him, while the Iraqi financial delegations held meetings on Over the week with investors in Europe and the United States last month in an effort to promote the bond issues.
The government said that this year's expected deficit of $ 25 billion in size to $ 100 billion budget it needs the bond proceeds to pay wages and the financing of infrastructure projects in the gas, oil, electricity and transport sectors.