Decision not to issue Int'l bonds market test & experiment see alternatives 10/12
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    Decision not to issue Int'l bonds market test & experiment see alternatives 10/12

    Appearance: the decision not to issue international bonds market test and experiment to see alternatives
    October 12, 2015 3

    Supported the Economic Adviser to the Prime Minister, the Ministry of Finance's decision not to issue international bonds, the Ministry has several alternatives, including borrowing or from States and other agencies "less harmful" on Iraq,

    He said the appearance of Mohammed Saleh, economic adviser to the Iraqi Prime Minister, Haidar Abadi, told the press that "the Ministry of finance is concerned with international bonds as financial chart and know the ability of Iraq to affordability", expressing "support the decision of the Minister of finance to stop issuing international bonds.

    Saleh promised that "precautionary step taken by the Ministry of finance just put the worst-case plans, stating that it" constitutes a test of the market, and successful experience to learn alternatives to global lenders and interest. "

    He said the Economic Adviser to the President of the Government, "the Ministry of finance owns several alternatives including borrowing or lending institutions of other States, or the Japanese lending agency, the International Monetary Fund and the World Bank, being less harmful to Iraq."

    In turn welcomed the parliamentary Finance Commission, the Ministry of Finance's decision, rejecting foreign borrowing.

    Said a member of the parliamentary Finance Committee, Magda El-Tamimi, "balancing the current 2015 included an item on the borrowing of about six billion dollars to cover the fiscal deficit", noting that "States which wanted the Finance Ministry to borrow was detailed knowledge of how bad the economic reality of Iraq, suffering from corruption."

    Tamimi, revealed "surprise officials of those States of Iraq resorted to borrowing, despite the large revenues from oil, and the size of the corruption and waste of public money, which damaged the country's reputation in global forums, and forced to borrow, what weakened the position of negotiator.

    Tamimi said, that those "offered to lend Iraq $ 1 billion only in very large interest of 11.5 percent," refusing to borrow Iraq from around the world, and need only available financial resources with good investment. "

    She asked, "if we didn't know what to do with our money, how to maintain and improve investment loans," likely "infiltrates the loan money into the pockets of corrupt if the current system of corruption."

    Member of the parliamentary Finance Committee, promised that "the best solution to reduce current economic crisis lies with the borrowing of funds from existing banks, citizens and urged survivors to deposit their money in banks to benefit from the Government in Exchange for their bonds, as did Egypt.

    Tamimi called for the need to "activate the private sector and the industrial and agricultural sectors, and take advantage of the loans granted by the Central Bank of Iraq, for the development of the local economy."

    The Finance Ministry sent in (September 15, 2015), financial budget bill 2016 valued at 84 trillion dinars, indicating that it had prepared on the sale price of 45 dollars per barrel, the export rate of 3.6 million barrels.

    The Finance Minister, Hoshyar Zebari, asserted Iraq has sought recently to issue Treasury bonds worth billions of dollars to counter the impact of the financial crisis, in cooperation with major international banks.

    rcookie: this explains the Japanese & Romanian meetings last week…as contingency to being denied by WB & IMF!
    Last edited by rcookie; 10-12-2015 at 01:17 PM.

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