New Iraqi Sovereign Bonds Launched by Iraqi Finance Ministry

The Iraqi Finance Ministry issued a statement that the U.S government has provided guarantee for Iraqi sovereign international bonds worth 1 billion U.S dollars. The Finance Ministry of Iraq said in a statement that Iraqi Finance Ministry worked very hard during the month of December 2016 and in the start of January 2017 regarding the issuance of these sovereign bonds. The statement further indicated that all the essential requirements were efficiently completed regarding the finalization of this process, and finally we have launched this major project by issuing these sovereign bonds. The Iraqi Ministry of Finance has also confirmed that the total duration of these sovereign bonds is 5 years with the estimated interest rate of 2.1% per year.

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The ministry also said that the major objective for the issuance of these bonds was to overcome the Iraqi budget deficit problem and to stabilize the Iraqi financial & economic situation. The statement indicated that the departure of these bonds was based on the General Budget Act. This Act authorizes the Iraqi Ministry of Finance to issue these bonds in the best interest of the country. The statement confirmed that the foreign banks also admired the offered interest rate of these bonds. It has been considered a major achievement of Iraqi Finance Ministry for the issuance and management of these bonds compared to the similar cases in other countries in the world. It is important that the United States has provided guarantee of these bonds.

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