On Tuesday, Iraqi Central Bank has announced the launching process for the sale of Iraqi bonds. These bonds are estimated at more than 1.30 billion U.S dollars.
It has been considered a part of governmental efforts to overcome Iraqi budget 2016 deficit problems. Iraqi economy is still experiencing severe financial crisis caused by the massive decline in the global oil prices and heavy expenses in the war against terrorism, especially to eliminate Daash organization. The Iraqi Central Bank said in a press statement that Central Bank of Iraq is starting sale for new Iraqi bonds worth more than (1.30 billion U.S dollars) 1.5 trillion Iraqi dinars.
The statement also pointed out that these Iraqi bonds will be issued for two years and new Iraqi bonds will be sold at a discount of 8 percent per year. The statement further indicated that the purchase requests will be collected directly by the Iraqi Central Bank from Iraqi banks and Iraqi citizens. The Iraqi Central Bank announced earlier its objective to launch the local governmental bonds and these Iraqi bonds would allow Iraqi government to manage the deficit issues for the Iraqi budget 2016. The Iraqi Finance Ministry submitted a request in the month of March for the issuance of Iraqi local bonds. Point to be noted that an earlier version of Iraqi Local bonds are circulating, but these specific Iraqi bonds is the first of its types since the year 2003.