Iraq to Issue Bonds in August

By John Lee.

According to a report from TR Zawya, Iraq is planning to issue a total of $11 billion (13 trillion Iraqi dinars) in bonds in the next two months to cover the state budget deficit.

Acting central bank governor Ali Al-Allaq told the news agency that the government would issue around $5 billion in domestic bonds next month and around $6 billion in international bonds by the middle of August.

He added that the government has started talks with potential investors in Turkey for the five-year international bonds.

"The domestic bonds will be repaid to the public in one year after deducting a specific rate that is close in value to the interest rate," said Al-Allaq, without elaborating on interest rates.

The central bank also plans to repurchase government bonds as parts of wider efforts to provide financial liquidity, maintain price stability and support the economy, Al Allaq said. He said the state has allocated IQD 1 trillion over the next five years to support small and medium enterprises.

(Source: TR Zawya)

(Bond market image via Shutterstock)

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