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Thursday, April 30, 2015

BLC Admin Tlm724 News Update

Afternoon Update 04/30/215

Exclusive - Iraq seeks credit rating before jumbo bond issue

Tlm724:  Thanks Rocky this is a good one !

Iraq plans to obtain a sovereign credit rating and is approaching rating agencies as it prepares for a jumbo $5 billion (£3.2 billion) bond issue needed to cover a budget deficit caused by low oil prices
 
Tlm724:  Jumbo bond issue, go big or go home !!!!

"We started the process," Hoshiyar Zebari

Tlm724:  Action !
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Iraq has said it will issue $5 billion of debt in its first international bond sale for nine years.

Tlm724:  For the first time in 9 years wow ! International bonds baby and let us not forget that bonds are a debt and, depending on the terms of the bond, Iraq is obliged to pay them interest and/or to repay the principal at a later date, just sayin...

It has been discussing its bond issue plan with Citibank and Deutsche Bank

 

The process of obtaining a credit rating could be a delicate one for Iraq, requiring it to open its books to the agencies and disclose new information on its finances. Zebari did not say when he expected the process to be completed

Tlm724:  If Iraq whats to play with the big boys then they will have to open their books ! Full transparency is required.

many fund managers think it would struggle to sell $5 billion in a short space of time, even with generous pricing.

Tlm724:  In order for Iraq to entice these fund managers they are going to have to get a good credit rating and also avoid the anti-money laundering black list. These two issues are critical to Iraq's economic reform plan ! It is imperative to address these and do it quickly in order to build international confidence !

Asked if $5 billion was too ambitious, Zebari said: "We have in the budget a commitment to issue $6 billion. So this is the low - this is how we plan to cover our deficit. But there’s no way we can do it in one tranche.”

Tlm724:  Not issueing in one tranche means not all at once, there will be predetermined schedule of issuance.

In addition to the international bond issue, Iraq has introduced or is planning other fiscal measures including a local currency bond issue to banks

Tlm724:  This is telling for sure issueing bonds in dinar, the question remains what will they do to the dinar to make it attractive ? Still to be determined  Wink

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Smart answer: recent Central Bank action to increase outlets the dollar will dominate the local currency deteriorated

that "the Commission will make proposals on procedures and in coordination with the Central Bank to avoid the collapse of the local currency against the greenback, saying that" recent actions by the Bank outlets to sell the dollar will reduce the dollar as a result of the lack of risk in the market.

Tlm724:  on the agenda of the Commission meeting today is to establish procedures in coordination with the Central Bank to lower the exchange rate of the dollar against the Iraqi dinar ! yeppers going to have several meetings I would imagine , also see notes here

Najiba Najib: recent central bank measures to increase outlets sell the dollar will not dominate the local currency deterioration

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Vice President of the House of Representatives Iaram Sheikh Mohammed, "the Kurdistan Region currently moving towards the implementation of the oil agreement fully between Baghdad and Erbil
April 30, 2015

Vice-President of the Iraqi Council of Representatives Iaram Sheikh Mohammed announced that the Kurdistan Region is moving towards the implementation of the oil agreement between Baghdad and Erbil and fully, and in return demanded the federal government to send the region's share of the federal budget with financial allocations for the Peshmerga forces, and came modern sovereignty during a meeting in his office Consul British in Erbil (Lencas Mackay).

At the beginning of the meeting he gave Sheikh Mohammed thanked the United Kingdom government and people to provide support for Iraq and Kurdistan In this particular phase of the ongoing war against Daash terrorist and expressed regret what happened from the problems between the province and the center, which has impacted negatively on the livelihood of the Kurdish people, 

and added "the Kurdish people did not wait from Baghdad that the daily strength has become part of the conflict and political differences, and today prov paced serious steps to implement the oil agreement and to Baghdad sends its financial benefits, 

and that the current economic crisis is an opportunity to review and re-evaluation and can be utilized officials in the region of this phase to avoid problems in the future it is necessary so to speed up the reform and economic and financial in Kurdistan. "

For his part, the British consul continued to provide support and assistance to Iraq and the Kurdistan Region and efforts to reach rapprochement between the province and the center and resolve the outstanding issues and files.

Information Office of the Vice President of the Council   Thursday, 4/30/2015

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