Don't WAIT!

Friday, September 4, 2015

KTFA Members To Iraq: "Do It and Do It Now!"

KTFA:

BigTex:   I believe our fiscal year ends in less than 30 days (Oct 1 begins 2016). Calendar year ends in less than three months. Time is flying fast.

PDids:
  » September 3rd, 2015, 11:13 pm    What is very interesting if one goes to the Bloomberg Link and reads the full article is that the Bond Offering that was completed yesterday below was " 4 TIMES OVER SUBSCRIBED "

WOW! This is Iraq's next door neighbor and you would as an American citizen not wish to travel there today anymore than you would want to travel to Iraq!

So IMO we should keep our eyes peeled on next week's Bond meetings in USA and BRITIAN.

....
dnari131 wrote on September 3rd, 2015, 7:36pm GMT:

David A. Weinberg ‏@DavidAWeinberg 6h6 hours ago

#Qatar follows #Saudi Arabia by issuing $4.1 billion in bonds to cope with budget deficits due to low energy prices:

Qatar Bond Issue Raises $4.1 Billion

Bloomberg Staff | 02-09-2015, 11:47 AM | Qatar |

- See more at:  http://ift.tt/1INJEx5

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Toyvp:
  First Fitch now S&P with a B- rating doesn't say much for negotiations IRAQ is being dealt a big shot across there bow "DO IT AND DO IT NOW"!!!! or those bonds are doomed for failure (See Article Below)   

YOU HAVE 1 OPTION IRAQ AND YOU ALREADY HAVE THE GREEN LIGHT SO JUST DO IT!!!!!!!

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Big Spring:  EXACTLY!!!!! IN LESS THAN 2 WEEKS IT WILL BE 12.5 YEARS FOR THE IRAQI CITIZENS......STILL WITH NO TRADEABLE RATE, NO PURCHASING POWER............

SHABIBBI NEEDS TO UNDERSTAND BUSINESS!!!! IT WILL NEVER BE PERFECT!!!!

YOU ENGAGE AND MAKE ADJUSTMENTS AS YOU GO ALONG...............I DONT SEE ANYTHING CHANGING WITH SHABIBBI IN THE DRIVERS SEAT...... ..

.IRAN WILL HAVE THEIR RATE OUT BEFORE IRAQ CHANGES ANYTHING...........THEIR GOING TO MISS THE BOAT!!!!! ALL IMO

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Mike100:  They will dont worry because they are truly left with No other options if they want to take their place on the international stage and for foreign investment to pour in to bring liquidity which they desperately need or other option let their economy crumble and another arab spring. Iraq needs to make important decisions now!!!!

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TF1564:  IMO....BOTTOM LINE IS THIS.....THEY "KNOW" WHAT THEY NEED TO DO....THEY NEED TO MAKE BIG DECISIONS AND CAN'T.

IF S IS NEEDED TO MAKE THIS HAPPEN, HE SHOULD COME BACK AND MAKE IT HAPPEN.

SEEMS LIKE THE COUNTRY IS IN NEED OF THIS.....EVERYONE KEEPS SAYING I NEED THIS BEFORE I DO THAT.....SEE WHERE IT IS GETTING YOU?

THE WINDOW OF OPPORTUNITY IS CLOSING PEOPLE!!!

"THE COUNTRY HAS NO LIQUIDITY"...."THEY HAVE TO DO THIS MR"....HOW MANY TIMES HAVE WE HEARD THAT????

THE TIME IS NOW!!!!! OR YOUR GONNA MISS IT...IMO

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dnari131
ECONOMY War-torn Iraq dealt junk 'B-' rating by S&P
8 hours ago   URL Twitter

It only takes analysts with Standard & Poor's a few short words to explain their junk rating on Iraq: it "faces security and institutional risks that are among the highest of all rated sovereigns".

The New York-based rating agency assigned the Republic of Iraq a 'B-' foreign currency rating on Thursday, deep within speculative territory, as the country's ongoing war with Isis and a steep slide in oil prices present significant risk to investors.

Economic activity in Iraq, which also earned a stable outlook from S&P, is expected to rise 0.3 per cent this year before advancing more than 5 per cent over each of the next three years, buoyed by large oil reserves.

The rosy economic forecasts are based on an increase in oil production, which S&P estimates will reach 5m barrels per day by 2018, compared to roughly 3.1m barrels per day last year.

Nonetheless, analysts with the rating agency said:

The rating on Iraq is constrained by its war with the Islamic State of Iraq and Syria; political institutions that are in an early stage of development; and sectarian divisions between the Sunni, Shia, and Kurdish ethnic groups.

The rating action comes as policymakers in Iraq plan to meet prospective investors for the country's first international debt sale since 2006, as the government attempts to stabilise its finances.

Credit ratingsEconomySovereign bondsMiddle EastIraqStandard & Poor'sS&P

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Walkingstick:  The central bank plans to put up a large gold bullion weights to sell to citizens

Editor: AB, BS 2015/09/04 12:25
Picture
A source at the Central Bank, on Friday, that the bank plans to launch a large gold bullion weights to sell to citizens through private banks, as he emphasized that this comes after public demand to buy bullion previously put forward by the Bank, which was smaller weights.

The source said in an interview for the (long-Presse), said that "the Iraqi Central Bank already put gold bullion with weights ranging between (5-50) and 24 g caliber for private banks in order to sell them to citizens."

The source, who asked not to be named, said: "alloys that have been put forward previously met with popular among the citizens and achieved good sales compared to the quantities offered," noting that "the bank therefore decided to put great weight alloy."

The source pointed out, that "the weights that will be put forward is (100 250 500 1000) g, and 24 caliber," pointing out that "the mechanism put these alloys will be similar to previous mechanisms of sale, where it will be sold to private banks to be able are sold to citizens according to simple mechanisms to enable any citizen of easily buy them, according to a simple margin on the price of the alloy does not exceed the 1%, which represents a cost the administrative line with the Bank's policy. "

The central bank revealed, about two months ago, in an agreement with one of the largest SEC companies bullion global Stamping gold bullion from the weights (5.10, 15.20, 25 and 50) g, caliber 24, and put up for sale through banks and through its epicenter in Baghdad For employees, while the banks called for the submission of requests to buy the quantities that you want for its own account or on behalf of the public, select the sale price on the basis of cost plus 1% as a download manager.   LINK
S&P Assigns ‘B-/B’ Ratings To Republic of Iraq; Outlook Stable

September 4, 2015   By Bloomberg

Press Release: S&P Assigns ‘B-/B’ Ratings To Republic of Iraq; Outlook Stable

The following is a press release from Standard & Poor's:

OVERVIEW

-- In our view, Iraq faces security and institutional risks that are among
the highest of all rated sovereigns--stemming primarily from its war with
ISIS--as well as significant fiscal and external pressures due to the sharp
fall in oil prices in the second half of last year.

-- However, Iraq benefits from massive oil reserves and high oil exports.
Projected large increases in oil production will, in our view, support economic
growth and help alleviate fiscal and external pressures over the medium term.

-- We are assigning our 'B-/B' long- and short-term foreign and local
currency sovereign credit ratings to Iraq.

-- The stable outlook is premised on our expectation that fiscal and
external deficits will not worsen beyond our forecasts and that the war with
ISIS will be contained.

RATING ACTION

On Sept. 3, 2015, Standard & Poor's Ratings Services assigned its 'B-'
long-term foreign and local currency sovereign credit ratings on the Republic
of Iraq. The outlook is stable. At the same time, we assigned our 'B'
short-term foreign and local currency ratings. The transfer and convertibility
(T&C) assessment is 'B-'. Iraq is the 130th sovereign rated by Standard &
Poor's.

RATIONALE

In our view, the rating on Iraq is constrained by its war with the Islamic
State of Iraq and Syria (ISIS); political institutions that are in an early
stage of development; and sectarian divisions between the Sunni, Shia, and
Kurdish ethnic groups. ISIS controls large areas of the north and west of the
country including Iraq's second-largest city, Mosul. Nevertheless, crucially,
over 85% of Iraq's oil fields and production are located in the south of the
country close to Basra, the main port for crude exports. These are
Shia-controlled areas at some distance from the fighting. Our rating assumes
that the government will remain in control of these assets. They are the key
supports for the rating.

Iraq has the world's fifth-largest proven crude oil reserves and is the
second-largest oil exporter in the Organization of Petroleum Exporting
Countries (OPEC). Oil dominates the Iraqi economy, contributing over 90% of
government revenues and more than 95% of exports.

Iraq elected a new government, and in September 2014 Haider Al-Abadi took over
as prime minister. Mr. Abadi is viewed as more inclusive and secular in his
approach than his predecessor, which could help ease ethnic tensions. In
addition, Mr. Abadi has planned significant reforms including cuts in the size
of government.

After a contraction of 2.2% in 2014 and an estimated 0.3% growth in 2015, real
GDP growth is expected to rise to an average of 5.7% from 2016-2018, largely as
a result of the expansion of oil production. We think that Iraq's oil
production will reach about 5 million barrels per day (b/d) by 2018 (with
exports of about 4.5 million b/d), compared with around 3.1 million b/d in
2014. We expect domestic demand will remain weak for at least two years owing
to the war against ISIS and general societal uncertainty.

Military and humanitarian expenditure related to the ISIS war and the decline
of oil prices have hurt public finances. We project the general government
fiscal deficit will reach 18% of GDP in 2015 and 12% of GDP in 2016 from a
deficit of 5.5% of GDP in 2014. The widening deficit is planned to be partially
financed by up to US$6 billion in external borrowing, and by domestic issuance
taken up by state-owned banks. We note that the Iraqi government has recently
been able to get international financial support and access to funding from
multilateral institutions. For example, the IMF recently approved a "Rapid
Financing Instrument" of about US$1.24 billion.

We project that general government debt will average 65% of GDP in 2015-2018,
up from about 39% of GDP in 2014. Iraq's debt load previously benefited from an
80% haircut that the government negotiated with its Paris Club creditors in
2003-2004.

Iraq's current account has typically run a surplus owing to Iraq's large oil
exports. However, we expect the current account balance to fall into deficit in
2015 because of the sharp drop in oil prices. We forecast Iraq's current
account deficit to average 3% of GDP in 2015-2018, compared with an average
surplus of 10% of GDP in 2011-2014. We forecast narrow net external debt at
about 9% of current account receipts (CARs) during 2015-2018, and we estimate
average gross external financing needs as a percentage of CARs and usable
reserves at about 76%.

Inflation currently remains low, with consumer price inflation in the low
single digits (approximately 2.2% in 2014). We expect that the Central Bank of
Iraq (CBI) will maintain the dinar's peg to the U.S. dollar, albeit with minor
fluctuations
. While this has helped control inflation, the peg limits the CBI's
monetary flexibility
.


OUTLOOK

The stable outlook reflects our expectation that fiscal and external deficits
will not worsen beyond our forecasts and that the war with ISIS will be
contained. It also incorporates our forecast of a return to strong growth from
2016 onward owing to the projected increases in oil production and oil exports.
We could lower the ratings if these assumptions do not hold.

On the other hand, we could raise the ratings if Iraq's security situation
improves significantly and, with it, Iraq's public finances.


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