Iraq to issue New Govt Bonds

By John Lee.

Iraq's Ministry of Finance has  said it will issue a new series of its "Injaz/Enjaz" ["achievement"] bonds.

According to s statement issued on social media, but not yet available on the Ministry of Central Bank of Iraq (CBI) websites, the bonds will be offered in two denominations:

• A bond of 500,000 Iraqi dinars with an annual interest of 6.5%, payable every six months for two years;
• A bond of 1,000,000 Iraqi dinars with an annual interest of 8.5%, payable every six months for four years.

Full statement from the Ministry of Finance:

The Ministry of Finance, represented by the Public Debt Office and in cooperation with the Iraqi Central Bank, announces the release of the third edition of the government "achievement" bonds for public accounting with a total value of up to 1.3 trillion Iraqi dinars.

RELEASE DETAILS:

• Type of bonds: Government bonds based on the Iraqi Dinar.
• Proposed Categories:
  • A bond of 500,000 Iraqi dinars with an annual interest of 6.5%, payable every six months for two years.
  • A bond of 1,000,000 Iraqi dinars with an annual interest of 8.5%, payable every six months for four years.
• Writing period: from 14/10/ 2024 to 13/11/13
• How to write: Purchase orders are submitted to the branches of banks authorized by the Iraqi Central Bank, attached to the required identification documents. The amount is transferred via RTGS electronic payment system on the day of purchase itself, and the buyer gets a temporary receipt until the deposit is received from the bank.
• Call for Participation: The Ministry invites citizens, investors and companies to participate in this edition of government bonds.
• Trading: The proposed bonds can be traded in the Iraq securities market.
• Legal framework: This edition comes in accordance with the Federal General Budget Act No. 13 for the years 2023, 2024 and 2025.
• The bonds issued are sealed with a special stamp and signed by the Ministry of Finance.
• The benefits of writing:
  • Fixed Return: The government commits to pay the annual interest and the value of the bond when the due date approaches.
  • Secure Investment: Government bonds are among the safest investments given the guarantee of the government.
  • Boosting the national economy: Writing funds contribute to financing development projects and supporting financial stability in the country.

(Source: Ministry of Finance)