Tlm724 & Shredd – News & Comments
Tlm724: The World Bank will lend Iraq three billion dollars as “very low interest rates,” the end of 2016
Author: HH, ZJ Editor: BK, HH 9.9.2016 11:13 Number of Views: 447
Long-Presse / Oman Expected financial advisor to the Prime Minister Haider al-Abadi, said Friday that the World Bank loan does “affordable long-term” for Iraq end of the year 2016, as he emphasized that the loan amount is estimated at three billion dollars interest “very low.”
He said the appearance of Mohammed Saleh said in an interview to the (long-Presse), during his participation meetings of Iraq with the ongoing international IMF mission in Amman, Jordan, he said that “the World Bank mission that involved meetings provided the vision of funding for economic development in Iraq for the soft loan of about three billion dollars paid in stages, very low interest rates and long repayment term, “noting that it comes in” the framework of a program for financing development in Iraq. ”
Saleh added that “the World Bank between the activities targeted by the loan, is the support of the federal budget in line with the economic reform paths and a document of reform launched by the Prime Minister,”
stressing that “the loan will be spent over three years to coincide with the reformist trends in the activities of government management reform and modernization of payment systems and the social security and the fight against corruption and other things. ”
Saleh continued, that “the payout of the loan after the completion of understandings with the World Bank on the road map, which is consistent with the paths of economic reforms,” expected to “be executed loan to Iraq by the World Bank end of the year 2016”.
It is noteworthy that Iraq is currently engaged in the first review of the Stand-By Agreement with the IMF mission negotiations in the Jordanian capital, Amman, in order to complete an IMF loan during the current year 2016. LINK
Shredd Not the first article we’ve seen for this but wanted to point out that this is a good sign. A loan by the WB for a long term and low rate shows not only support and confidence in Iraq as it continues to rebuild it’s economic infrastructure but it also demonstrates trust and faith in Iraq’s ability to repay.
Remember, lending and borrowing is what the global economic machine is all about. For the lender, interest income and for the borrower, stimulus to push progress/growth as quickly as possible and the kind that ensures the ability to repay is in place and protected.
This shows us once again Iraq is continuing to mature economically. It continues to prove that a lop or redenomination due to a failing economy is not the case for Iraq. This shows us and demonstrates to future investors that Iraq is a vital participant in the global economic construct.
See the trees in the forest! It’s all good.
Geofitness Shredd, with all of this confidence why are they stuck at a B rating?
Any idea when that would increase?
Shredd Rating agencies assess how likely a borrower is to be able to repay its debts and help those trading debt contracts (e.g., loans) in the secondary market (to investors).
It takes a lot to change a rating and I suspect their rating will not go beyond the lower end of investment grade until they have a more diversified industrial output. Having their economy rely almost entirely on oil presents risk.
As their agriculture continues to return and as infrastructure and commerce grow, they will demonstrate a more balanced country.
That said, it’s all about the data. As Iraq continues to repay loans with ease, demand in the secondary market will likely grow which in turn will pave the way for Iraq to fully participate no matter their rating.
Geofitness Thank you and to reiterate, I absolutely LOVE how to break down this info for us/me to comprehend.
Shredd Thank you for the kind words. I’m just trying to pay forward what others have done for me to the members here.
http://www.bondladyscorner.com/t173371-the-world-bank-will-lend-iraq-three-billion-dollars-as-very-low-interest-rates-the-end-of-2016
