Baghdad/Obelisk, said Abdul Basit Turki, Governor of the Central Bank said Tuesday that Iraq is planning to issue bonds in local currency for the first time since the overthrow of Saddam Hussein, which would give the country a new tool of monetary policy.
Turkish, he said on the sidelines of a Conference in Geneva that the first tranche of bonds are expected to amount to three billion dinars (2.58 million US dollars).
He added that this will be the first time that a bond issue for fiscal policy and not for the purpose of funding.
Turki said he expected that the first version of the new bonds will be a good response and may be followed by more releases and the total size of the issue will depend on demand.
It will increase the bond order for five years and hopes the Central Bank issued the first tranche before the end of the year, although that decision will be taken with the participation of the Ministry of finance.
He said that the bond interest is expected to be less than the standard interest rate of the Central Bank of 6 percent.
He said Iraq's inflation rate of 2 percent describing it as a rare and very good number.
He said there were no plans to issue international bonds even though that might happen in the future if there are ambitious plans for the development of needed funding.
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Last edited by dealerdean on Tue Nov 12, 2013 4:51 pm; edited 1 time in total