Finance Minister Hoshyar Zebari said Thursday that Iraq was seeking sovereign rating continues with credit rating agencies as it prepares to issue bonds worth whopping five billion dollars needed to cover the financial deficit caused by low oil prices.
Zebari said in a press statement, "We started the process and that the banks are also seeking to help us in this direction," without having to disclose the date on which it is expected to complete the process.
Iraq has announced that it will issue bonds worth five billion dollars in the first issued in the international bond market in nine years and is in dire need of liquidity as the government predicted that this year's deficit up to about 25 percent of the size of the budget of 100 billion dollars.
The access to the sovereign rating of the Agency major credit which lacks him Iraq currently may help persuade the global fund managers International banks in underwriting bonds.
Zebari said that "Iraq is seeking to connect with two or three credit rating agencies" without unnamed but Iraq discusses the issuance of bonds with the City Plan and Bank Deutsche Bank.
The process of obtaining the credit rating may be sensitive for Iraq as it will be forced to open its books to these institutions and reveals new information on the public finances.
It is expected to attract Iraq's oil reserves huge -alta did not reach them Daash- buyers for this proposal, but many fund managers believe that Baghdad would face difficulty in the sale of five billion dollars in a short period Even if the pricing generous.
In response to whether the number five billion to be very ambitious Finance Minister Hoshyar Zebari, "We have a budget commitment to issue six billion law, so this is the minimum, and this is our plan to cover the deficit, but there is no way to be issued in a single chip . "
In addition to the issuance of international bonds has taken Iraq or planning to take other financial measures, including the issuance of bonds in local currency to the banks and the imposition of taxes on some consumer goods and cut salaries in the public sector, it will also discuss a request for assistance from the International Monetary Fund.
The Iraq plans to request emergency funding worth 400 million dollars to 700 million dollars from the International Monetary Fund at the time of going through the country in a state of fiscal austerity and a crisis in the provision of cash called on the government to think about and study to extend the payment of staff salaries period to forty days instead of a month and the imposition of numerous taxes to cover the deficit in Almoisnh.anthy
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