Iraq issued international bonds two billion dollars in 2016 to ensure the World Bank

BAGHDAD / JD / .. Governor of the Central Bank on the Keywords said that Iraq intends to issue international bonds two billion dollars in 2016 to guarantee from the World Bank for up to half that amount. The move comes after the higher-yielding government was forced to stop the issuance of bonds earlier this year.
He expected the governor on the Keywords in an interview with Reuters that the new bond yields "a lot less" than of 11.5 percent return that investors demand during a promotional tour in Europe and the United States in September, but did not speculate further. and he said: "value will amount to two billion dollars but ( World Bank) will ensure, say 40 or 50 percent .. will open that market more - make it wider - to attract more investors. "He said that Baghdad and placed the bonds in their accounts for the next year's budget to finance the deficit is estimated at $ 21 billion in size budget of about $ 95 billion.
has been extremely revenues rise by investors request to issue bonds two billion dollars earlier this year, will impose a heavy financial burden on Iraq is a member of OPEC. The Baghdad fighting organization Daash and suffer from shrinking oil revenues due to lower crude prices, it needs to proceeds of the bonds to pay wages and finance projects infrastructure in the oil, gas, electricity and transport sectors. He was appointed Iraq's three major international banks to arrange the release are Citigroup, Deutsche Bank, JP Morgan Chase, but many institutional investors were reluctant because of the risks. A source close to the process said the government has asked the banks themselves arranging a promotional tour to issue next year. He is harmful to the benefit of the great economic advisor to Prime Minister Haider al-Abadi that the return will depend on the extent of the involvement of the World Bank. He explained that the guarantee of 75 percent, for example, the revenue will come down to five or six percent. He gave no estimate to ensure the 40 to 50 percent mention. And give the Standard & Poor's Iraq assigned a credit of B- any six degrees below the level of investment because of what it says is the security and institutional, which are among the highest risk of any of the credit ratings to equal it with Egypt and louder than the Greece. Iraq was last week agreed on a program of the International Monetary Fund, which monitors the economic policies of Baghdad in preparation for a possible program of financing in 2016.