Ebadi economic adviser: Iraq postpone an international bond offering of two billion dollars until 2017

History of edits:: 09.30.2016 8:18

{Baghdad} Euphrates News appearance of Mohammed Saleh said, the economic adviser to Prime Minister Haider al-Abadi, "Iraq is likely to postpone the sale of bonds two billion dollars in global markets until early 2017 at least.

Saleh said in a press meeting, seen by the agency {Euphrates News}, "I think we Snerjih {version}," saying that "we should see the situation in the oil market, - If improvement we can put it off a little bit and that has seen oil market deteriorate further , we will have to borrow . "

Saleh said," It is expected to improve the economic situation of Iraq after that process and then be able to reduce military spending allocations or directed to the rebuilding of war - damaged areas.

Between, "we , we are shifting from a war budget to a peace budget", Mthecna that this will improve rating credit for Iraq to B + for at least the next six months from now B- strongly and cut the cost of borrowing. "

The prime minister adviser, said that" military spending in the budget for 2017 will remain at the same level as this year, but has been reclassified in the financial year according to changing needs. "

He noted that" Iraq agreed {initially} last month on loan for three years worth of three billion dollars from the World Bank to support Baghdad 's budget, this will be the loan first batch of additional funding required for the agreement with the IMF. "

He added that, the details of the conditions to support public financial institutions and pensions in Iraq are not yet clear , but the first tranche will be disbursed in December.

He continued," the period of repayment of the loan amounting to 16 years with a grace of three years and the benefit period about two percent. "

The findings , OPEC, at its meeting Wednesday in Algeria to agree to freeze oil production, which reflected positively on prices.

Sought Iraq during the past period to the convergence of views between Iran and Saudi Arabia, to support prices. it is
noteworthy that, the Minister of Finance Hoshyar Zebari, announced on the third of June, that Iraq expects to sell international bonds worth two billion dollars in the last quarter of this year , when the international aid flow starts, it will help to reduce the cost of borrowing on Baghdad.

Seeks Iraq to get international support after shrinking revenues by the collapse of oil prices two years ago , where the government relies on oil for 95 percent of their income.

The last time selling the Iraq international debt instruments in 2006 when he issued bonds by about $ 2.7 billion for until the year 2028 interest rate of 5.8 percent.

Said Kalta Moody 's and Fitch Ratings credit, last May, Iraq is an agreement with the international Monetary Fund and a positive side also gave the credit rating Fitch B- Iraqi credit long Alogel.anthy