[You must be registered and logged in to see this image.]
The credit rating of Iraq and the dangers of borrowing
Abdul Hussain Hinan
The credit rating of Iraq and the dangers of borrowing
Abdul Hussain Hinan
The credit rating agencies private financial firms issued periodic reports reflect what it called the creditworthiness of a country or an organization, and show the importance of reports in that they affect the confidence of investors in this country or organization positively or negatively by indicating its ability to borrow from the financial markets.
A few days ago confirmed the credit rating agency Global S & P (Standard & Poor's Financial Services LLC ), a Alone the three largest companies in the world in this area, classified Iraq credit when (B- / B) with a stable outlook, and is not a welcome boost foreign investment at the moment as the degree classification offers investors a roadmap for their investments in the country, especially in the bond trading process as they determine to do so wide circulation in the global bond markets after identifying risks.Nevertheless it is acceptable stage commensurate with the reality of Iraq economist who expects GDP growth to fall to less than 2% levels in 2017 to 2019 as a result of the negative effects of what the government of the measures in the fiscal policy offset weak domestic demand in contrast to what they offer us Ministry Iraqi planning of deceptive statements in addition to the insistence of the Iraqi Central Bank to adopt a biased product of foreign monetary policy, but something good is that Iraq has entered the list of the credit rating for the first time to get a first grade credit rating in its history in September 2015 because it did not previously own degree credit rating because of the wrong wars and economic policies of the former regime time andthen the financial mess phase after 2003 in terms of corruption and waste prevailed in the process of Iraqi funds management.
this classification financially accomplishing for Iraq , which was the most important causes great pressure that the United States practiced by the international financial institutions to incorporate Iraq into theinternational community and especially in international financial transactions. It can move encouraged Iraqis as individuals, companies and the government to improve the level of Iraq 's credit if we walk way an adult in money management and put restrictions best on corruption and if we turned to the people has a good ability to understand the numbers.
In order to understand the reality of credit and its impact must be meaningful credit rating understand in general he is measuring the degree of risk while the financial deal with the person or company or country, providing a realistic view of the ability of the state or the people or companies to repay the loans they borrowed from the donor financial institutions and how to estimate interest rates depending on the degree ofrisk greater the risk increased interest on loans ratio because the most important main objectives of thereports of the credit rating is to guide investors on how to return on the money that will be invested in theform of loans to countries or companies account, and can be a short - term rating reflecting the high capacity of the state or the company or individuals to repay loans due within one year from the date of the rating, or itmay be a long - term , a term for repayment ability in a long time, and there are many financial institutions that provide annual reports on the credit rating , but the three most important adult that dominate the ratings market in the world and they are both Moody 's (Moody's) and Standers & Poor 's and Fitch Ratings (Fitch) and all US institutions.
decline of Iraq 's credit rating reflects the low potential for Iraq to repay the debt, then the risk ratio is high for lending, and vice versa, when the heightened risks of financial institutions are advised to impose high interest rates on loans may be the advice not to grant loans basically, and can be described as Iraq 'sfinancial Palmtzbzb mode or between stable and anxiety and a need to take a mature economic and financial measures to help in our move to a better position relatively stable.
credit rating varies from enterprise to another , but what concerns the organization that developed classification Iraq finally They (S & P) that the highest degree classification has is AAA, and this means that the risks are almost non - existent in the process of granting loans , which imposes a very low rate of interest, and then comes the AA + and AA and a + and a and A-, and this represents the first level of classification, the second level begins to BBB + and BBB , and BBB- and BB + and BB and BB- and b + and b and finally B- and when the classification under the BBB- investment is high risk , which imposes very high interest rates on loans (Iraq is currently located within this level) .
the third level is CCC + and CCC then CCC- and CC and C first, second and Darjtan mean that the degree ofrisk is very high but if it has reached the case to CCC- means that the risk inevitable and that the likelihood of the borrower 's ability to repay is very weak debt, expressing the latter level a, IV D on the state ofbankruptcy and the impossibility of the borrower 's ability to repay debt. And that the state or the company that fall within this level are out of financial institutions accounts.
From this it is clear that Iraq is still in a relatively stable, relatively far from the risk of bankruptcy mode, but it does not constitute a factor contentment with teenager political class in understanding the meaning of thestate. In order to ensure improved and put the credit must work to improve the performance of the Iraqi economy , the gradual transition from a rentier state holding the money and power to the State of thecollection services will be private sector is the engine and the actual commander of the economy. It issurrounding us risk is if we consider the opinion of these companies in Iraq 's financial position imminent certified to prove that we are fine it means that we still do not realize the size of responsibility in running thecountry financially, because these companies have been committed earlier disastrous errors, and suffered because of it to the criticism of which contribute part in the financial crisis in 2008 because of reports that have reduced the size of financial risks in the area of mortgages in the United States, where he was given credit rating agencies assessments are incorrect Souktha major US banks and securities among the causes of the outbreak of the mortgage loan crisis in the United States in 2008, which was the spark that ignited theglobal financial crisis. Also directed to the finger in the worsening of the sovereign debt crisis in the euro zone as a result of the announcement of successive cuts to classify a number of troubled countries, as a result ,the public prosecutor has proceeded in upstate New York in May 2010 an investigation with officials in several major banks such as Citigroup (Citigroup Inc ) and Goldman Sachs (GS Bank USA) and Morgan Stanley (Morgan Stanley) about the possibility of doing misled ratings agencies about the creditworthiness of bonds related to subprime loans for gains, as granted by the high ratings before it turns out to be not worthy of the high rating.
In the midst of conflict the international financial and economic was an opportunity for the president of theChinese credit rating Guan Jianzng to criticize harshly the US rating agencies that dominate the market rating for causing the financial crisis, saying that China should have a say in how to classify governments and debt, where the description of those institutions as politicized pretty much it favors Western countries and violates the standards laid down by them as constraints in their work, but he said in regards aligned contrary to what has happened in the US and global markets turmoil and a wave decline after lowering Corporation (S & P) rating the US government in June 2011, this was the decision means that the US administration bonds is worthy of the Premier classification AAA, and confirms that there is a possibility not to Washington 's ability to repay its debt, or at least delay the payment, which attributed the Standard & Poor 's this cut to the inability of Washington to reduce the size of its debt sovereign huge, and who was then equal to three - quarters thesize of the US economy, and the results of this financial and economic conflict also increased claims in Germany to establish an independent European rating agency in order to get rid of the dominance of theinstitutions of the US, came the calls after the cut by Standard & Poor 's rating for its excellent nine European countries and the European financial Stability Facility from AAA grade to grade AA.
finally , the important question remains: Do we need to rating agencies? The answer is simply yes without hesitation, but it requires greater transparency and improved performance and stricter than regulatory bodies, and we must not look for them by the state that they provide absolute measures of risk, but on the state establish a special assessment of the financial down our institutions and put economic in general by Iraqi experts skilled possess a great deal of independence and courage.
this classification financially accomplishing for Iraq , which was the most important causes great pressure that the United States practiced by the international financial institutions to incorporate Iraq into theinternational community and especially in international financial transactions. It can move encouraged Iraqis as individuals, companies and the government to improve the level of Iraq 's credit if we walk way an adult in money management and put restrictions best on corruption and if we turned to the people has a good ability to understand the numbers.
In order to understand the reality of credit and its impact must be meaningful credit rating understand in general he is measuring the degree of risk while the financial deal with the person or company or country, providing a realistic view of the ability of the state or the people or companies to repay the loans they borrowed from the donor financial institutions and how to estimate interest rates depending on the degree ofrisk greater the risk increased interest on loans ratio because the most important main objectives of thereports of the credit rating is to guide investors on how to return on the money that will be invested in theform of loans to countries or companies account, and can be a short - term rating reflecting the high capacity of the state or the company or individuals to repay loans due within one year from the date of the rating, or itmay be a long - term , a term for repayment ability in a long time, and there are many financial institutions that provide annual reports on the credit rating , but the three most important adult that dominate the ratings market in the world and they are both Moody 's (Moody's) and Standers & Poor 's and Fitch Ratings (Fitch) and all US institutions.
decline of Iraq 's credit rating reflects the low potential for Iraq to repay the debt, then the risk ratio is high for lending, and vice versa, when the heightened risks of financial institutions are advised to impose high interest rates on loans may be the advice not to grant loans basically, and can be described as Iraq 'sfinancial Palmtzbzb mode or between stable and anxiety and a need to take a mature economic and financial measures to help in our move to a better position relatively stable.
credit rating varies from enterprise to another , but what concerns the organization that developed classification Iraq finally They (S & P) that the highest degree classification has is AAA, and this means that the risks are almost non - existent in the process of granting loans , which imposes a very low rate of interest, and then comes the AA + and AA and a + and a and A-, and this represents the first level of classification, the second level begins to BBB + and BBB , and BBB- and BB + and BB and BB- and b + and b and finally B- and when the classification under the BBB- investment is high risk , which imposes very high interest rates on loans (Iraq is currently located within this level) .
the third level is CCC + and CCC then CCC- and CC and C first, second and Darjtan mean that the degree ofrisk is very high but if it has reached the case to CCC- means that the risk inevitable and that the likelihood of the borrower 's ability to repay is very weak debt, expressing the latter level a, IV D on the state ofbankruptcy and the impossibility of the borrower 's ability to repay debt. And that the state or the company that fall within this level are out of financial institutions accounts.
From this it is clear that Iraq is still in a relatively stable, relatively far from the risk of bankruptcy mode, but it does not constitute a factor contentment with teenager political class in understanding the meaning of thestate. In order to ensure improved and put the credit must work to improve the performance of the Iraqi economy , the gradual transition from a rentier state holding the money and power to the State of thecollection services will be private sector is the engine and the actual commander of the economy. It issurrounding us risk is if we consider the opinion of these companies in Iraq 's financial position imminent certified to prove that we are fine it means that we still do not realize the size of responsibility in running thecountry financially, because these companies have been committed earlier disastrous errors, and suffered because of it to the criticism of which contribute part in the financial crisis in 2008 because of reports that have reduced the size of financial risks in the area of mortgages in the United States, where he was given credit rating agencies assessments are incorrect Souktha major US banks and securities among the causes of the outbreak of the mortgage loan crisis in the United States in 2008, which was the spark that ignited theglobal financial crisis. Also directed to the finger in the worsening of the sovereign debt crisis in the euro zone as a result of the announcement of successive cuts to classify a number of troubled countries, as a result ,the public prosecutor has proceeded in upstate New York in May 2010 an investigation with officials in several major banks such as Citigroup (Citigroup Inc ) and Goldman Sachs (GS Bank USA) and Morgan Stanley (Morgan Stanley) about the possibility of doing misled ratings agencies about the creditworthiness of bonds related to subprime loans for gains, as granted by the high ratings before it turns out to be not worthy of the high rating.
In the midst of conflict the international financial and economic was an opportunity for the president of theChinese credit rating Guan Jianzng to criticize harshly the US rating agencies that dominate the market rating for causing the financial crisis, saying that China should have a say in how to classify governments and debt, where the description of those institutions as politicized pretty much it favors Western countries and violates the standards laid down by them as constraints in their work, but he said in regards aligned contrary to what has happened in the US and global markets turmoil and a wave decline after lowering Corporation (S & P) rating the US government in June 2011, this was the decision means that the US administration bonds is worthy of the Premier classification AAA, and confirms that there is a possibility not to Washington 's ability to repay its debt, or at least delay the payment, which attributed the Standard & Poor 's this cut to the inability of Washington to reduce the size of its debt sovereign huge, and who was then equal to three - quarters thesize of the US economy, and the results of this financial and economic conflict also increased claims in Germany to establish an independent European rating agency in order to get rid of the dominance of theinstitutions of the US, came the calls after the cut by Standard & Poor 's rating for its excellent nine European countries and the European financial Stability Facility from AAA grade to grade AA.
finally , the important question remains: Do we need to rating agencies? The answer is simply yes without hesitation, but it requires greater transparency and improved performance and stricter than regulatory bodies, and we must not look for them by the state that they provide absolute measures of risk, but on the state establish a special assessment of the financial down our institutions and put economic in general by Iraqi experts skilled possess a great deal of independence and courage.
[You must be registered and logged in to see this link.]
Today at 10:26 am by Rocky
» Kuwait is drilling an oil well near Umm Qasr, towards Iraqi territory
Today at 10:24 am by Rocky
» In the document... the first Iraqi ministry identifies the obstacles to changing the new official wo
Today at 10:22 am by Rocky
» Italian Institute: Iraq is stuck in its own crises, including Baghdad’s efforts to undermine the “au
Today at 10:21 am by Rocky
» The head of the Integrity Commission announces the holding of an international Interpol conference i
Today at 10:18 am by Rocky
» Planning: Iraqi companies are not efficient in conducting the population census
Today at 10:14 am by Rocky
» utube MM&C 4/24/24 Support - USA- Turkey - Timing- Currency Value - Tabled
Today at 8:08 am by Rocky
» MM&C 4/25/24 National Bank of Iraq goes live with Temenos core banking and payments
Today at 8:06 am by Rocky
» utube MM&C 4/26/24 Iraqi Dinar - US Treasury Exchange Rates- Focus - Banking Partnerships - Rate C
Today at 8:06 am by Rocky
» A banking official indicates a "danger" to Iraq by depriving more than half of its banks of dollars
Today at 7:55 am by Rocky
» With the participation of the Association of Private Banks, investment opportunities are on the tabl
Today at 7:45 am by Rocky
» Within a month... an Iranian border crossing recorded a noticeable increase in exports of goods to I
Today at 7:44 am by Rocky
» The Association of Private Banks appreciates the efforts of the government and the Central Bank to c
Today at 7:43 am by Rocky
» Al-Maliki's coalition presents a third candidate for the position of governor of Diyala
Today at 6:57 am by Rocky
» Arab gathering: The Kirkuk problem is getting complicated and the Sudanese must intervene
Today at 6:56 am by Rocky
» Next week.. a Kurdish delegation will visit Baghdad to meet with the Minister of Finance
Today at 6:54 am by Rocky
» Under the pretext of salaries... Al-Party refrains from handing over port revenues to Baghdad
Today at 6:53 am by Rocky
» Association of Banks: For the first time, we are witnessing a clear targeting of depriving half of t
Today at 6:51 am by Rocky
» Parliament does not know the reason for the delay in sending the 2024 budget schedules: Voting takes
Today at 6:49 am by Rocky
» Applicants for the 2024 Hajj are demanding that the Central Bank secure the dollar for them through
Today at 5:09 am by Rocky
» Governmental and private banks will showcase their services tomorrow during Financial Inclusion Week
Today at 5:08 am by Rocky
» Iraq's oil exports rise despite OPEC+ cuts
Today at 5:06 am by Rocky
» A study explodes a "surprise"... Iraq is among the countries that export oil to "Israel": How is the
Today at 5:04 am by Rocky
» Al-Araji emphasizes working to strengthen national identity
Today at 5:02 am by Rocky
» Al-Sudani visits Saudi Arabia to participate in the World Economic Forum in Riyadh
Today at 5:01 am by Rocky
» Iraq is talking about producing one million additional liters of gasoline
Today at 4:59 am by Rocky
» The Council of Ministers approves the implementation of the Baghdad Metro project
Today at 4:56 am by Rocky
» Minister of Commerce: We formed a joint economic committee with Türkiye
Today at 4:55 am by Rocky
» Resources: Government measures have contributed to improving the water situation in Iraq
Today at 4:53 am by Rocky
» Parliamentary Finance: Baghdad will continue to send salaries to the region’s employees until settle
Today at 4:51 am by Rocky
» A parliamentarian describes the corruption of Iraqi ports as “ghouls” and reveals the involvement of
Today at 4:49 am by Rocky
» Obelisk Hour: Basra is the subject of political conflict and ambiguity over the fate of the funds al
Today at 4:48 am by Rocky
» Turkmen leader: An agreement on the local government of Kirkuk is near
Today at 4:45 am by Rocky
» Anbar calls for the operation of its factories despite financial obstacles
Today at 4:44 am by Rocky
» Turki: The crisis of the Presidency of Parliament prompted the Sunnis to amend the Council’s interna
Today at 4:43 am by Rocky
» The Agriculture Committee confirms the existence of Iraqi-Turkish-Iranian discussions on water
Today at 4:42 am by Rocky
» Resources diagnose the challenges facing the water file in Iraq
Today at 4:38 am by Rocky
» Parliament pledges to the Interior Ministry: We will transfer money to buy weapons from citizens
Today at 4:33 am by Rocky
» Al-Issawi is the closest.. Parliament sets the date for deciding the choice of the new president
Today at 4:31 am by Rocky
» Deputy: Iraq's investments have risen and need a comprehensive review of previous years
Today at 4:30 am by Rocky
» Iraqis consume 7 billion eggs annually and import about $900 million
Today at 4:28 am by Rocky
» The Iranian role complicates attempts at open cooperation between Iraq and Turkey. Turkey is trying
Today at 4:26 am by Rocky
» Move in Iran to obtain $242 billion from Iraq in compensation for the eight-year war
Today at 4:25 am by Rocky
» 12 decisions from the Council of Ministers regarding the Baghdad Metro and Najaf-Karbala train proje
Today at 4:23 am by Rocky
» Sudanese Advisor: The path to development has begun... the Baka and the militias “we silence them wi
Today at 4:21 am by Rocky
» Not from Kurdistan.. How did Iraq become a source of oil for “Israeli tanks”?
Today at 4:19 am by Rocky
» Parliamentary Agriculture criticizes the Sudanese and Erdogan agreement: Türkiye will control water
Today at 4:16 am by Rocky
» The Iraqi government issues new decisions
Yesterday at 2:35 pm by Rocky
» The story of “reduced oil” to Jordan, from “compulsion” to mutual benefit.. Is there a loss?
Yesterday at 2:33 pm by Rocky
» The Council of Ministers takes 12 decisions for the Baghdad Metro and the Najaf-Karbala train
Yesterday at 2:32 pm by Rocky
» utube MM&C 4/23/24 Iraqi Dinar - IQD Update - Development Road Project - Saviour of Global Banking
Yesterday at 10:18 am by Rocky
» Kidney from pig transplanted into deathly ill New Jersey woman — and begins working almost immediat
Yesterday at 10:15 am by Bama Diva
» The most difficult option.. Warnings of the danger of floating the Iraqi dinar without achieving an
Yesterday at 9:48 am by Rocky
» Trade from the “Economic Committee” with Türkiye: It will overcome all obstacles facing the traders
Yesterday at 9:46 am by Rocky
» Washington's hope for stable relations with Baghdad clashes with Iraqi parties' rejection of the Ame
Yesterday at 9:41 am by Rocky
» Karim Badr: Development is America’s will to kill silk
Yesterday at 9:36 am by Rocky
» Oil: Opening of a new port for liquid gas for vehicles in Baghdad
Yesterday at 9:33 am by Rocky
» A media advisor warns of corruption in a draft law on the Parliament’s agenda
Yesterday at 9:21 am by Rocky
» Economist: There is serious work to lift US sanctions on Iraqi banks
Yesterday at 9:16 am by Rocky
» Will the agreements signed with the US Treasury reflect positively on the exchange rates?
Yesterday at 7:52 am by Rocky
» Iraq continues its quest to join the World Trade Organization
Yesterday at 7:51 am by Rocky
» Iraq completes the completion of the files for the initial offer of goods and services to join the W
Yesterday at 7:50 am by Rocky
» Economist: Travelers' dollars are leaking into the parallel market...and this is what the Central Ba
Yesterday at 7:32 am by Rocky
» President of the Federal Court: It is not permissible to force anyone to join any party, and the pol
Yesterday at 7:30 am by Rocky
» The Council of Ministers holds its session headed by Al-Sudani
Yesterday at 7:27 am by Rocky
» America weakens Baghdad...and increases Kurdistan's military capabilities
Yesterday at 7:26 am by Rocky
» The Iraqi government plans to build 10,000 schools throughout the country
Yesterday at 7:23 am by Rocky
» American threats close the Iraqi Stock Exchange at a loss
Yesterday at 7:21 am by Rocky
» Increase in external transfers at the Central Bank
Yesterday at 7:20 am by Rocky
» Al-Maliki calls on Britain to cancel restrictions on the entry of its companies into Iraq
Yesterday at 7:18 am by Rocky
» Planning and the European Union are discussing signing a number of agreements in the development, en
Yesterday at 7:16 am by Rocky
» Parliament talks about the mechanism for recovering smuggled funds and hints at the next stage
Yesterday at 7:13 am by Rocky
» Interior Ministry: The number of completed national cards reached 37 million cards
Yesterday at 7:06 am by Rocky
» Amnesty International: Violations of freedom and human rights continue in Iraq and the Kurdistan Reg
Yesterday at 7:04 am by Rocky
» Parliamentary Oil: The government is proceeding with the decision to raise the price of improved gas
Yesterday at 7:03 am by Rocky
» A parliamentary committee in Basra to investigate violations of the port company and the local gover
Yesterday at 7:00 am by Rocky
» Revealing the 10 most important American exports to Iraq
Yesterday at 5:31 am by Rocky
» A noticeable increase in the rate of Iraq's import of Chinese cooling devices
Yesterday at 5:30 am by Rocky
» Prime Minister: Working on projects without completing the infrastructure is a waste of money
Yesterday at 5:28 am by Rocky
» Iraq.. Extending the deadline for registration procedures on plots of land
Yesterday at 5:27 am by Rocky
» What is the main purpose of conducting the population census in Iraq?
Yesterday at 5:25 am by Rocky
» A plan to transform Iraq from a barren land to green with 5 million trees
Yesterday at 5:24 am by Rocky
» The Housing Fund announces the acceptance of more than 11 thousand loans through the Ur platform
Yesterday at 5:23 am by Rocky
» The Bank of Baghdad is moving to increase its capital to 400 billion dinars
Yesterday at 5:20 am by Rocky
» The electronic payment system will soon be adopted on Iraqi buses
Yesterday at 5:19 am by Rocky
» “It threatens our interests and destroys our economy.” An Iraqi project “irritates” the Kuwaiti stre
Yesterday at 5:18 am by Rocky
» Warning from the Central Bank about “misuse of electronic payment cards”
Yesterday at 5:17 am by Rocky
» Iraq and the Sultanate of Oman are discussing sending capacities through the Gulf countries
Yesterday at 5:16 am by Rocky
» The fact that a decision was issued to deport Syrian workers from Iraq
Yesterday at 5:14 am by Rocky
» Rice comes first... America exports 10 foodstuffs worth more than 350 million dollars to Iraq
Yesterday at 5:14 am by Rocky
» A sixth licensing round for gas exploration
Yesterday at 5:12 am by Rocky
» Baghdad is preparing to host the 50th session of the Arab Labor Conference
Yesterday at 5:11 am by Rocky
» Scientific symposium on the future vision of the tripartite budget
Yesterday at 5:09 am by Rocky
» Five conversion power stations enter service in Najaf
Yesterday at 5:08 am by Rocky
» Planning: Conduct a population census next November
Yesterday at 5:07 am by Rocky
» Experts: Spreading misleading information harms development and investment
Yesterday at 5:03 am by Rocky
» Economists call for tightening money laundering laws and port controls
Yesterday at 5:02 am by Rocky
» Today's newspapers are interested in Sudanese's visit to Anbar Governorate and preparations for cond
Yesterday at 5:00 am by Rocky
» Iraq and Russia discuss cooperation between the two countries in the field of information and artifi
Yesterday at 4:58 am by Rocky