Iraqi Dinar 123 News:– The Iraqi economy has been facing a number of issues; the most important issue is in the Iraqi energy production sector. It would also contribute to reduce the dependency on the oil exports in financing the budget. Iraq is looking to overcome the budget deficit problem by issuing serf-governing bonds, which will be launched very soon, by the Iraqi Finance Ministry in the international markets. A banking advisor Dr. Essam Mahouelle issued a statement that general production is the most important issue facing by the Iraqi economy, especially the lack of electric power supply in the private sector, because electricity is considered as the major factor for any industry that directly affect on the economy for any country. He also said that energy savings to the factories except the Iraqi productive sectors will give away the import with 65% rate including all kinds of goods. The increase in this situation would aggravate the economic problems in the country.
The Iraqi government is planning to start marketing to sell its self-governing bonds in the international markets, dominated in the U.S dollars which will be issued represented by the Iraqi Finance Ministry in order to gather cash financing to overcome the budget deficit problems for the next year’s budget. It is expected that two banks are interested and would be the major source to sell Iraqi self-governing bonds, the ‘City Krupp, Netherlands Bank and JP Morgan Bank. He added that Iraq would generate more than 6 billion U.S dollars by the sale of its self-governing bonds that would be more helpful to manage the 2016 budget deficit problem. Issuance of these bonds is considered the first release of any international item since 2006. The ‘Fitch’ foundation awarded ‘B-‘credit rating for Iraq which was due to poor economic condition and bad security situation in the country, but issuance of these bonds will improve Iraqi GCR credit rating.