Iraq sells $1.3bn in Local Bonds

By John Lee.

According to a report from Reuters, the Central Bank of Iraq (CBI) has started selling local bonds worth 1.5 trillion Iraqi dinars ($1.29 billion).

The first local bonds sale to the public since 2003 is aimed at relieving the government budget deficit caused by falling oil prices and the costs of fighting the Islamic State group (IS, ISIS, ISIL, Daesh).

Iraq already issues Treasury bills to domestic banks and has international bonds outstanding.

The two-year bonds are sold at an 8-percent annual discount rate, and purchase applications from banks and citizens can be presented at the central bank directly.

(Source: Reuters)

(Bonds image via Shutterstock)

5 Responses to Iraq sells $1.3bn in Local Bonds