STRYKER: This one shows that it has been postponed but doesn't say how long...
Posted on 22 December 2013. Tags: government bonds
Iraq Bond Issue Shelved Again
The recent surge in sectarian violence has sent Iraq’s bond yields higher, prompting officials to postpone a planned debt sale.
Deputy Finance Minister Fadhel Nabi told Bloomberg:
“We will definitely issue new bonds, but it will take more time now with all the problems in the country.”
Read More Link On Right
The news agency also reports that the yield on Iraq’s 5.8 percent dollar bonds maturing in January 2028 rose 19 basis points from the end of September to 7.8 percent, compared with a 4 basis-point decline to 5.2 percent in the average yield on regional sovereign debt.
The government’s plan for a second bond, which Nabi announced in October, is not assured. Iraq said more than two years ago, in July 2011, that it would come to market in a year to finance new infrastructure after decades of wars and economic sanctions, but it hasn’t done so.
The premium for Iraqi sovereign bonds over Treasuries has widened by 32 basis points since the end of October to 540 Wednesday; the comparable spread for Middle East government bonds fell 16 basis points to 414, according to JPMorgan.
This is why we are seeing such an effort put out to combat Al-Qaeda IMO...Stryker
DAMAGAFF: If the speed of government wasn't already slow enough (i.e. original bond talk in 2011), now we have violence slowing it down even further...GREAT!
Gamaray posted (here) what many may view as good news, as joint US and Russian assistance converges on Iraq, but the effects of what is really happening on the ground is reflected in the ongoing stutters and stops of Iraqi progress.
Once again, thanks for all you and the newshounds do Stryker. Information is the key to keeping us all grounded in what is really happening with our investment.
DIANA: Thanks Dama and Stryker. I too have my doubts as to how effective the Iraqi's will be. Especially, ,with weapons they probably aren't familiar with and I question underlying motives also only time will tell.
JASA 1: Diana will still have several hundred US military instructor, strategists and now DRONE Operators. It might not be easy but one thing I know that we have gotten really effecient at is killing (sad to say but true).
I also think that they did not suddenly take over those 2 cities and that the media will use this article as a catalyst to carry out a full assault on Al-Quida. Next weeks stories will tell the tale.
LV23: At first I was very upset by the with the recent news of Al-Quida, but you are in my opinion correct Jasa1, in that this didn't happen overnight.
In fact after watching the Nightly News Friday night, and reading the local paper today they made it seem like all was lost.
Then you read the articles here that come from Iraq, and they have a completely different tone to them, that things are much better now, that in fact Al-Quida is on the run. So it makes you wonder, are they trying to discourage the Dinar investors here in the States?
We have always heard that the news would get really bad near the end. Also, you have the CBI stating that they will start the sale of Bonds on the 7th, after waiting this long to start selling them, would they wait until now if it was really that bad?
DIANA: Your right Jasa1 we will know in a few days what direction we're headed in.
LV23; Well the fact that they are going to be selling the short term Bonds only shot my earlier theory to heck. I do have one question though, why is it that every time the CBI seems to be getting close Maliki seems to do his best to stop it.
It makes you wonder about the earlier article regarding the US corporations wanting to continue there money laundering operations ( if that is in fact true).
My question is, why now. Why did Maliki pick now to go in to dismantle the tent cities and cause the uprisings?
Was it that the protests needed to be stopped and his motives are for the greater good of all Iraqis, or is it that this was only way he could think to stop progress of the CBI this time?
Jasa1: LV23 that very thought is one that I can never get a grip on. One day he is all hug'n and kiss'n Barzani and making the appearance of working toward taking Iraq into the next century and the next it seems that he sabotaging everything.
Anyone that has been involved studying this investment and the players can come up with a different theory (like Scooby says creative writing) on why Maliki does what he does. So instead I ask what is really happening in Iraq?
The WTO is already working with Iraq for ascension. The BIS has already stated that they will be accepting funds from Iraq.
Agreements made with the Kurds regarding fund distribution. The nation has joined together with outside help to fight terrorism. The estimated size of the upcoming budget IMO says alot of their plans.
Laws upon laws have already been passed. Tariffs have been implemented (at least the 1st set). World economists as well as Iraqi economists say the Dinar is undervalued and if not hyperinflation could kick in.
Outside corporations have already setup or are in the process of setting up house to do business in Iraq. With all these things happening what can stop the momentum?
Well an all out civil war could but is not likely because as the articles pointed out "the country has come together to fight terrorism".
So IMO this amateur optimistic Dinarian believes that from now till the end of Febuary will be a great window for the people of Iraq and those of us that are blessed to be a part of this historic time.
Now am I betting the house on it HECK NO but it sure makes for some exciting and intriguing conversation within my group of Dinarians. To dream of blessings beyond our wildest dreams is better than any reality crap on TV.
Just remember that old saying "A bird in the hand is worth 2 in the bush". Give thanks for all that we have and for who we have in our life.:
LV23: Thank you jasa1, you have given me hope. I have to believe Maliki thought he could have the Dinar revalue and get reelected without addressing the security situation.
Then the powers that be informed him that would not be the case. Lets hope the members trying to enforce the document of honor prevail, that Maliki now realizes that if he continues his ways he could lose everything.
I have to believe in a higher power guiding this, that this will all work out the way it is supposed to, however that may be. I pray that one day this will be nothing but a humorous memory, and we will all have a good laugh.