Greetings all.
I know it has been awhile, but as you all know, I only post when there is something worth sharing. The article I am sharing has already been posted but I wanted to comment on several parts.
Iraq Displays Sovereign Bonds For Sale
2/9/2015 0:00 BAGHDAD - Alaa al-Tai Scheduled to travel a senior government delegation, including ministers, officials and experts in the financial and economic affairs, next week, to the United States and Britain to discuss the issue of Iraq sovereign bonds, and to explain the ability of the country to fulfill its obligations to investors who Septaon those bonds and Atdaolunha in markets Alaalmih.
~~~
I know it has been awhile, but as you all know, I only post when there is something worth sharing. The article I am sharing has already been posted but I wanted to comment on several parts.
Iraq Displays Sovereign Bonds For Sale
2/9/2015 0:00 BAGHDAD - Alaa al-Tai Scheduled to travel a senior government delegation, including ministers, officials and experts in the financial and economic affairs, next week, to the United States and Britain to discuss the issue of Iraq sovereign bonds, and to explain the ability of the country to fulfill its obligations to investors who Septaon those bonds and Atdaolunha in markets Alaalmih.
~~~
A high-level government source, who preferred anonymity, said in an interview singled out the "morning" that a government delegation will travel next Monday, accompanied by a credit rating talks team, to the United States and the UK to clarify Iraq's ability to fulfill its obligations to investors who Septaon Sindh Iraqi and international promotion, in a move that serve the welfare of economic reform measures and to maximize state revenues.
The source said, "The delegation will include government and finance ministers, oil and Governor of the Central Bank and the consultants and experts in economic and financial Shan officials to discuss the process of issuing sovereign government bonds in the global financial market."
The source noted, that the Iraqi government delegation held talks in Turkey during last June in order to promote Sovereign bonds to be issued by Iraq, stressing that the delegation held meetings with representatives of international banks also reviewed the financial and economic, political and security of Iraq report.
The source said that the talks with my company has a credit rating and the International Tribunals "Modiner and Fitch" in order to determine the credit rating of Iraq in the international capital market, also held talks with British companies rating and contacts to get a credit rating.
The source indicated that Iraq's current credit rating within the group (b, noting that the delegation will explain the possibilities and Iraq's oil export. http://ift.tt/1hLS9Dd
http://ift.tt/1EHFAnc
The source said, "The delegation will include government and finance ministers, oil and Governor of the Central Bank and the consultants and experts in economic and financial Shan officials to discuss the process of issuing sovereign government bonds in the global financial market."
The source noted, that the Iraqi government delegation held talks in Turkey during last June in order to promote Sovereign bonds to be issued by Iraq, stressing that the delegation held meetings with representatives of international banks also reviewed the financial and economic, political and security of Iraq report.
The source said that the talks with my company has a credit rating and the International Tribunals "Modiner and Fitch" in order to determine the credit rating of Iraq in the international capital market, also held talks with British companies rating and contacts to get a credit rating.
The source indicated that Iraq's current credit rating within the group (b, noting that the delegation will explain the possibilities and Iraq's oil export. http://ift.tt/1hLS9Dd
http://ift.tt/1EHFAnc
Parliamentary Finance: the issuance of international bonds will revive the economy for a limited period
BAGHDAD / Noor Ali
Parliamentary Finance Committee predicted, on Tuesday, the recovery of the Iraqi economy, by the international issuance of bonds worth $ 6 billion, saying it is one of the ways employed by States when the collapse of its economy, as economists student be attached to the budget tables cash flow of local and foreign currency, confirmed that the amount of 6 billion dinars for Aestday reservation.
He said the parliamentary finance committee member Sarhan Sylvana in an interview with the "long" that "this step of the steps set forth in the budget No. 2 of 2015 Act, and that the issuance of international bonds one of the ways to address the shortfall in the budget of 25 trillion dinars, but now and in the With the decline in oil prices, I believe that the deficit ratio of up to 50 trillion dinars. "
He added that "This move could revive the Iraqi economy for a limited period until the stability of oil prices in world markets, and added," for the purpose of the shortfall in the budget of 2015 treatment,
we released the internal and external bonds, and the last is the best, because the demand for internal bonds by the citizens weak , but did not get to the level we desire. "
He said Sylvana that "issuance of international bonds, will show a negative impact in the long term and not short, and that future generations over the next 20 years will bear these expenses that will address the current economic situation, which is a topical treatment."
Government revenues have fallen with the drop in oil prices at a time when Iraq is waging an expensive military campaign to organize Daash in the northern and western its provinces, which resulted in a potential deficit estimated at 25 trillion Iraqi dinars ($ 21.4 billion).
For his part, says economic expert, Dr. Ahmed Abrihi, in an interview with the "long" that "the amount of $ 6 billion is not large, compared to the size of the Iraqi economy, and the potential size of the oil revenue in normal circumstances, and this is to Aestday reservation".
"But if he can borrow from abroad great, when it should be the reservation, because he is not permitted to encumber the extra budget commitments, especially since oil supplier wobbling."
"The amount of borrowing $ 6 billion will allow more foreign currency to the Ministry of Finance, and could become the largest amount of selling them to the Central Bank, which supports the latter reserves indirectly."
He noted that "the need for religion need to reduce foreign currency inflows, he has personally demanded that encloses the House of Representatives in the general budget table showing the cash flow home and abroad of foreign currency, and the balance of foreign currency attached to the general budget."
He noted that "this will show how the balance will enter Iraq from foreign currency, and how much will come out of them, and the amount the government needs them as well, how much enters from oil and other sources of revenue," and expressed regret that the application of this method. "
He added by saying that "the absence of this table which shows the internal and external flow of foreign currency, can not appreciate the need to accurately borrowing, calling for the House of Representatives in the next year that the budget attached to this table, and on the basis of this table is estimating religion from home and abroad."
The Finance Minister Hoshyar Zebari (4 March 2015) that Iraq is considering several options to overcome the fiscal deficit, which is currently suffering from it, and these options to borrow from government banks and issuing six billion dollars worth of loans, bonds, in agreement with international banks.
Zebari said that the ministry is looking for ways to cover the fiscal deficit by several means, "noting that among that" the issuance of bonds or borrowing from state banks and the conversion of part of the assets deposited in the Central Bank to loans worth bonds six billion agreement with Deutsche Bank and the German City American Bank. " LINK
COMMENTS FROM OUR MEMBERS BY TAKING SOME OF THE INFORMATION FROM THE ARTICLES:
One member shares here ------------------ "As I read these two sentences regarding bonds it seemed there was enough value to warrant a deeper look and I agree it is significant.
Now this is very subjective and we are all largely disqualified (as objective thinkers) because we are holding dinar so let's TRY and have a look at these quotes with pragmatism and the foreknowledge that some details here are missing.
OK..... so when I take the two sentences (pasted below) and combine, re-order, and paraphrase them (trust me for now...) this is what comes out the other end:
"A delegation [of] senior government officials and experts [is] scheduled to travel to the United States and Britain next week to discuss the issue of Iraq sovereign bonds.
The delegation will include [the] Governor of the Central Bank, [various] government officials [most notably the] ministers of the [departments of] oil and finance and consultants and experts in economic and financial affairs.
[The delegations stated purpose is] to discuss the process of issuing sovereign government bonds in the global financial market."
Another members shares here -------------- A few things we can conclude from this with confidence:
1) They will be traveling to the two key money centers of the world. The places where such agreements and their particulars are decided.
Despite all our discussions of "China this" and "Shanghai that" the present day reality is that major debt issuance's in USD are settled thru the West and not only that but in the very two places listed in their itinerary.
2) The names listed for this trip are at the top of the food chain for Iraqi finance. There could be no better representation than the ones listed above. Had the CBI Governor been omitted here then the press release would still be of interest but it is VERY noteworthy that he and all below him who matter will be in attendance.
3) Had the press release simply stated "issuing sovereign bonds" we might easily let it slide by with little notice but it did not stop there. It expressly stated much more; that the purpose, the intent, for this rather long multi leg trip with a considerable entourage in tow is to do WHAT exactly? To issue debt that will be on offering externally "in the global financial market".
Based upon these three (3) points of CONFIDENCE we can now list points of opinion as we SPECULATE (with less confidence):
1) It is unlikely that these meetings will conclude without some signatures. Delegations (as they are calling this in their own words) denote special purpose and intent.
2) If they 1st go to New York and THEN the city of London 2nd? Might we conclude that point #1 is even more true? That they are "inking the deal"?
3) If however we conclude that signatures are not a reasonable expectation then we must somehow explain away the need for the CBI Governor to be in attendance.
He has his think tank already going there right? Could not these "consultants and experts in economic and financial affairs" iron out the kinks and simply report back?
Final point, the words given: "discuss the process" simply do not seem....complete.
4) Why the minister of oil (energy)? Did that seem odd to anyone? No deep thoughts here but perhaps along the lines of offering collateral? <-- So what does Iraq have a lot of that is extremely valuable? Yep oil, and they have lots of it.
5) While on the one hand we must concede that Iraq might simply be jumping on board here as emerging market countries have issued nearly $9 trillion worth of debt denominated in dollars in the past 8 years to save on interest expenditures, there is an important distinction that is key to our perspective.
As outlined by Nova, these bonds will be denominated in (paid out in) USD but purchased in what? IQD. This "process" next week might very well include the needed steps to facilitate the PURCHASE.
<-- I personally think this would be almost impossible without a value of the IQD or these bonds would end up worthless like the value of their currency. This is pretty good information here. Part of my reading between the lines.
BAGHDAD / Noor Ali
Parliamentary Finance Committee predicted, on Tuesday, the recovery of the Iraqi economy, by the international issuance of bonds worth $ 6 billion, saying it is one of the ways employed by States when the collapse of its economy, as economists student be attached to the budget tables cash flow of local and foreign currency, confirmed that the amount of 6 billion dinars for Aestday reservation.
He said the parliamentary finance committee member Sarhan Sylvana in an interview with the "long" that "this step of the steps set forth in the budget No. 2 of 2015 Act, and that the issuance of international bonds one of the ways to address the shortfall in the budget of 25 trillion dinars, but now and in the With the decline in oil prices, I believe that the deficit ratio of up to 50 trillion dinars. "
He added that "This move could revive the Iraqi economy for a limited period until the stability of oil prices in world markets, and added," for the purpose of the shortfall in the budget of 2015 treatment,
we released the internal and external bonds, and the last is the best, because the demand for internal bonds by the citizens weak , but did not get to the level we desire. "
He said Sylvana that "issuance of international bonds, will show a negative impact in the long term and not short, and that future generations over the next 20 years will bear these expenses that will address the current economic situation, which is a topical treatment."
Government revenues have fallen with the drop in oil prices at a time when Iraq is waging an expensive military campaign to organize Daash in the northern and western its provinces, which resulted in a potential deficit estimated at 25 trillion Iraqi dinars ($ 21.4 billion).
For his part, says economic expert, Dr. Ahmed Abrihi, in an interview with the "long" that "the amount of $ 6 billion is not large, compared to the size of the Iraqi economy, and the potential size of the oil revenue in normal circumstances, and this is to Aestday reservation".
"But if he can borrow from abroad great, when it should be the reservation, because he is not permitted to encumber the extra budget commitments, especially since oil supplier wobbling."
"The amount of borrowing $ 6 billion will allow more foreign currency to the Ministry of Finance, and could become the largest amount of selling them to the Central Bank, which supports the latter reserves indirectly."
He noted that "the need for religion need to reduce foreign currency inflows, he has personally demanded that encloses the House of Representatives in the general budget table showing the cash flow home and abroad of foreign currency, and the balance of foreign currency attached to the general budget."
He noted that "this will show how the balance will enter Iraq from foreign currency, and how much will come out of them, and the amount the government needs them as well, how much enters from oil and other sources of revenue," and expressed regret that the application of this method. "
He added by saying that "the absence of this table which shows the internal and external flow of foreign currency, can not appreciate the need to accurately borrowing, calling for the House of Representatives in the next year that the budget attached to this table, and on the basis of this table is estimating religion from home and abroad."
The Finance Minister Hoshyar Zebari (4 March 2015) that Iraq is considering several options to overcome the fiscal deficit, which is currently suffering from it, and these options to borrow from government banks and issuing six billion dollars worth of loans, bonds, in agreement with international banks.
Zebari said that the ministry is looking for ways to cover the fiscal deficit by several means, "noting that among that" the issuance of bonds or borrowing from state banks and the conversion of part of the assets deposited in the Central Bank to loans worth bonds six billion agreement with Deutsche Bank and the German City American Bank. " LINK
COMMENTS FROM OUR MEMBERS BY TAKING SOME OF THE INFORMATION FROM THE ARTICLES:
One member shares here ------------------ "As I read these two sentences regarding bonds it seemed there was enough value to warrant a deeper look and I agree it is significant.
Now this is very subjective and we are all largely disqualified (as objective thinkers) because we are holding dinar so let's TRY and have a look at these quotes with pragmatism and the foreknowledge that some details here are missing.
OK..... so when I take the two sentences (pasted below) and combine, re-order, and paraphrase them (trust me for now...) this is what comes out the other end:
"A delegation [of] senior government officials and experts [is] scheduled to travel to the United States and Britain next week to discuss the issue of Iraq sovereign bonds.
The delegation will include [the] Governor of the Central Bank, [various] government officials [most notably the] ministers of the [departments of] oil and finance and consultants and experts in economic and financial affairs.
[The delegations stated purpose is] to discuss the process of issuing sovereign government bonds in the global financial market."
Another members shares here -------------- A few things we can conclude from this with confidence:
1) They will be traveling to the two key money centers of the world. The places where such agreements and their particulars are decided.
Despite all our discussions of "China this" and "Shanghai that" the present day reality is that major debt issuance's in USD are settled thru the West and not only that but in the very two places listed in their itinerary.
2) The names listed for this trip are at the top of the food chain for Iraqi finance. There could be no better representation than the ones listed above. Had the CBI Governor been omitted here then the press release would still be of interest but it is VERY noteworthy that he and all below him who matter will be in attendance.
3) Had the press release simply stated "issuing sovereign bonds" we might easily let it slide by with little notice but it did not stop there. It expressly stated much more; that the purpose, the intent, for this rather long multi leg trip with a considerable entourage in tow is to do WHAT exactly? To issue debt that will be on offering externally "in the global financial market".
Based upon these three (3) points of CONFIDENCE we can now list points of opinion as we SPECULATE (with less confidence):
1) It is unlikely that these meetings will conclude without some signatures. Delegations (as they are calling this in their own words) denote special purpose and intent.
2) If they 1st go to New York and THEN the city of London 2nd? Might we conclude that point #1 is even more true? That they are "inking the deal"?
3) If however we conclude that signatures are not a reasonable expectation then we must somehow explain away the need for the CBI Governor to be in attendance.
He has his think tank already going there right? Could not these "consultants and experts in economic and financial affairs" iron out the kinks and simply report back?
Final point, the words given: "discuss the process" simply do not seem....complete.
4) Why the minister of oil (energy)? Did that seem odd to anyone? No deep thoughts here but perhaps along the lines of offering collateral? <-- So what does Iraq have a lot of that is extremely valuable? Yep oil, and they have lots of it.
5) While on the one hand we must concede that Iraq might simply be jumping on board here as emerging market countries have issued nearly $9 trillion worth of debt denominated in dollars in the past 8 years to save on interest expenditures, there is an important distinction that is key to our perspective.
As outlined by Nova, these bonds will be denominated in (paid out in) USD but purchased in what? IQD. This "process" next week might very well include the needed steps to facilitate the PURCHASE.
<-- I personally think this would be almost impossible without a value of the IQD or these bonds would end up worthless like the value of their currency. This is pretty good information here. Part of my reading between the lines.
Taking all if the above, it seems at least remotely possible that Iraq is about to do more than just "talk about the process" and is in reality actually selling these bonds next week (signatures) in the "global financial market" that is located where exactly? NY and London.
I see real intent here as a real possibility and if Nova's position holds true (and it seems sound to me) that the dinar needs a change in status to allow ALL of the above!
Conjecture and speculation? yes, and this is important to keep in mind. Entirely possible? you decide. This is meant to foster debate, provoke further thoughts, but not meant to " beat a dead horse" as I also agree with Mary that we wait for further information/confirmation.
original press unedited:
A) scheduled to travel a senior government delegation, including ministers, officials and experts in the financial and economic affairs,next week, to the United States and Britain to discuss the issue of Iraq sovereign bonds, <-- Two very powerful countries if you ask me financially. http://www.alsabaah....w.aspx?ID=99287
http://ift.tt/1hSKfbU
The source said, "The delegation will include government and finance ministers, oil and Governor of the Central Bank and the consultants and experts in economic and financial Shan officials to discuss the process of issuing sovereign government bonds in the global financial market."
<-- OK, why would the Governor of the CBI going? I am sure he is not there to carry their luggage. He would go to sign documents making things official and ready to implement!
There are some very great comments in this post which points out so much information.
I think we are all closer then you think with articles like this. Yes you do have to read between the lines a bit, but when you do, my excitement level increases. Please feel free to ask any questions on this post and I will do my best to get to all of them.
Have a safe one!!! Blessings, Steve
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