The current credit rating of Iraq fits and economic reality
Call to speed up installing formally
Baghdad – Mostafa Hashemi – Farah pumice
Seeks most governments and countries, companies or funding agencies to obtain credit rating in order to facilitate their access to finance that you want through the local markets or external reason to force the pace to get the highest degree of classification among the nations of the world to improve its reputation and economic development of the joints of the various productive sectors, to confirm for countries wishing investment to its sound economic and environment are valid, as well as the credit rating eases the cost of borrowing when the state needed to decode Achtnaqatha financial external debt.
Recognized credit rating
Known credit rating GCR, an acronym for (global credit rating) as a measure to assess the possibility of the borrower to meet its obligations in the face of the lenders or the sense of the other risks of non-payment of the lender (the source of the bond) to fulfill its obligations (the value of the loan and its benefits) to the borrower (the bondholder) . And is rated the world’s credit rating ladder consists of 4 grades are A, B, and C and D as well as variables that represent signal + or – and Petkrarat different. The credit rating agencies of the three, the Standard & Poor’s, Moody’s and, in general, Fitch evaluates the risks associated with both versions of the debt of companies or governments. The ability of the source to meet the payment of debt interest and premiums incurred by him the most important indicator of creditworthiness upon which to build classifications by these agencies.
According to the economic expert d. Appearance of Mohammed Saleh, the rating Iraq credit now, although he did not specify yet officially, Vhually probably at Class B returned him a good indication of the reason for optimism, explaining in a statement (morning): This place in the classification is not official, but set the intensity on buying Iraqi bonds sold in global markets, amounting to 2.7 billion dollars annual interest rate steady at 5.8 percent.
He stressed that it is possible to get it through a contract from one of the government departments such as the Ministry of Commerce economic or financial planning, or with one of the three agencies for the recent turn to conduct a field survey of the situation of the political, social and financial embrace it result in the degree classification. He stressed that the existence of a credit rating, though low, is better than no rating basically.
He pointed out that the existence of Chapter VII was the most prominent obstacles to obtaining credit rating to raise it under international sanctions since the nineties of the last century, as the lack of classification was basically confirms and proves that the country was a threat to all countries in the world. He continued, but now after entering Iraq to item VIII of the UN Charter, it is important to move the government in this aspect for the purpose of obtaining formal classification to achieve the required development after the entry of foreign investment into the country.
The first round of the Conference of Finance and Commerce had been launched in June of 2012, agreed during the government with the American side to encourage investors to come to Iraq and classification of credit to be able to give credit to foreign investors, as well as the importance that goes on Iraq in this category in order to give the guarantees in opportunities for investors and confidence to recover their capital.
Iraq’s financial strength
Salih stressed that the strength of Iraq’s financial is very large, and what it takes to integrate into the global system and the existence of financial liquidity and high oil wealth, which would raise the grade credit rating of Iraq, as he needed at the current stage to attract investment and foreign companies for the reconstruction of infrastructure through get a credit rating in order to develop economic reality to stabilize its importance in attracting investments and give the right economic perceptions to the investing companies.
And the importance of getting Iraq on the credit rating of the sovereign of the international credit rating agencies and the application of the policies needed to improve the degree classification to become within the investment grade, which contributes to increase the resources of the state so as to enable the country to attract investors and access to global capital markets and obtain financing cost occasion.
He pointed out that there are differences between the credit rating agencies in the credit rating of sovereign debt, as well as the factor of financial is the most influencing factors in the credit rating of sovereign debt, which leads to a change in the degree of classification, pointing to the need to identify the differences among them in the methodologies credit rating for sovereign debt even canceled.
Saleh explained that the three agencies recognized because all countries in the world take these classifications also said Iraq needs to get them for the purpose of improving the attraction of investment and confirm the efficiency of Iraq financially.
For his part, stressed the point person on the financial sector Shirvan Anwar Mustafa importance for Iraq to global sovereign rating.
Mustafa said in his speech (morning): “There are ways and simple mechanisms for sovereign rating, especially that all countries of the world are dealing with the institutions of international calendar,” returned him an important issue for the country and for the international deal, especially at the level of financial institutions.
He added that “in order to deal rating agencies and the international calendar with Iraq, must be plans and government policies are clear and stable without fluctuation, as well as to maintain the stability of the currency and a commitment to international conventions, adding that the current trend in the way of the signing of international treaties that give a guarantee to the investor, which is “favorable ground” for any international institution calendar to assess the situation in Iraq in general and to support to UN agencies.