KRG to Enter Bond Market

By Simon Kent.

After months of talks, the Kurdish Regional Government says it has authorisation from Baghdad to issue bonds, in a move aimed at easing growing financial pains in the semi autonomous region.

According to Bloomberg, the region needs approximately $1.4 billion to balance its books. Quoting IBN blogger Robert Tollast, the report noted how the KRG is falling short of monthly revenues to pay government workers and expand infrastructure, and has been struggling since the Maliki government cut payments, although this dispute is now partially resolved.

Since a partial deal with Baghdad over oil exports in November, the KRG has been hit by a double shock of the oil price collapse, and its finances have not recovered from the budget dispute with Maliki.

Deutsche Bank and Goldman Sachs have been chosen by the KRG to oversee the sales during planned meetings in London.

(Source: Bloomberg)