[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 7:52 am by Rocky
» utube 3/28/24 MM&C Iraqi Dinar - IQD Update - SWIFT - Purchasing Power - Urban Renaissance - Releas
Today at 7:51 am by Rocky
» Al-Mandalawi: Iraq is witnessing competition between major companies...and the House of Representati
Today at 7:49 am by Rocky
» The President of the Republic stresses the importance of the role of programmers in developing the w
Today at 7:46 am by Rocky
» The Minister of Industry and Minerals follows up on the technical and production performance of the
Today at 7:45 am by Rocky
» The Minister of Finance is following up on the field the progress of the newly implemented ASYCUDA s
Today at 7:44 am by Rocky
» Statistics: There are more than 15 million bank accounts in Iraq
Today at 7:42 am by Rocky
» Representative: One paragraph hinders the passage of a general amnesty within the House of Represent
Today at 7:37 am by Rocky
» Parliamentary Finance: “The draft federal budget law will be devoid of new job grades.”
Today at 7:36 am by Rocky
» Parliamentary action to resolve the fate of “food security contracts” in 15 governorates
Today at 7:35 am by Rocky
» 300 factories turned into "iron scrap" in Diyala
Today at 7:34 am by Rocky
» A deputy expects the dollar exchange rate to reach 140 Iraqi dinars
Today at 7:32 am by Rocky
» Al-Yasiri: The American administration is working hard to destroy the Iraqi economy
Today at 7:31 am by Rocky
» Infographic: The highest annual salaries of leaders of Arab countries
Today at 7:30 am by Rocky
» Communications announces that the electronic signature project has reached advanced stages
Today at 7:29 am by Rocky
» Parliamentary Integrity presents a file related to Kuwaiti violations of Iraqi oil
Today at 7:27 am by Rocky
» Parliamentary move to include amendments to Parliament’s internal regulations on the agenda (documen
Today at 7:25 am by Rocky
» The Iraqi President urges the Minister of Finance to expedite the payment of salaries to the Kurdist
Today at 7:23 am by Rocky
» Central Bank of Iraq sales exceeded $251 million at today’s auction
Today at 7:21 am by Rocky
» The Foreign Minister questions the "Iraqi resistance" attacks against Israel: the other side did not
Today at 7:20 am by Rocky
» The Minister of Labor announces progress in the electronic payment system
Today at 7:17 am by Rocky
» Interior Ministry: For the first time, we controlled the smuggling of petroleum derivatives by 98 pe
Today at 7:16 am by Rocky
» International companies offer offers to invest in the Dhi Qar marshes.. What distinguishes them?
Today at 7:15 am by Rocky
» “Tough” comments on interest rates raise the dollar globally
Today at 7:14 am by Rocky
» Iraq is the fifth largest oil supplier to South Korea in a month
Today at 7:12 am by Rocky
» Recovering more than 100 billion as a result of more than 200,000 employees on social welfare
Today at 7:11 am by Rocky
» The Sudanese consultant announces the completion of Baghdad Metro track designs
Today at 7:08 am by Rocky
» Al-Sudani stresses ending the problem of triple-shift schools
Today at 7:07 am by Rocky
» Iraq begins building two new tankers to transport petroleum products
Today at 7:06 am by Rocky
» Forming a council for “competition and preventing monopoly”
Today at 7:04 am by Rocky
» Features of an Iraqi-Turkish agreement regarding the status of the Kurdistan Workers’ Party
Today at 7:02 am by Rocky
» {Al-Buzrajiya} between the hammer of fraud and the power of the owners
Today at 7:01 am by Rocky
» Ministry of Oil: The gas sector is witnessing great development
Today at 6:59 am by Rocky
» An agreement with Britain in the field of securities
Today at 6:58 am by Rocky
» Discussions between Baghdad and Ankara to open a new port
Today at 6:57 am by Rocky
» Trade: About 11 million citizens updated their new card information
Today at 6:56 am by Rocky
» Electronic payment is sustainable growth
Today at 6:55 am by Rocky
» Experts: Iraq qualifies to be an important tourist country
Today at 6:54 am by Rocky
» Amending the Health Professions Law “robs” scientists of the central appointment 3 years after it wa
Today at 5:20 am by Rocky
» Is the “blessings package” that Erbil paid to the citizens of Kurdistan related to the elections?
Today at 5:19 am by Rocky
» Exceeded 5,000 projects.. Allocating 10 trillion dinars to support governorate reconstruction plans
Today at 5:18 am by Rocky
» “His need no longer exists.” Parliamentary Finance confirms the necessity of returning the retiremen
Today at 5:17 am by Rocky
» To communicate with the bases... 12 directives from Al-Sadr, including blocking numbers for non-gove
Today at 5:15 am by Rocky
» In an interview with "Baghdad Today"... an Iranian researcher reveals the importance of Haniyeh's vi
Today at 5:14 am by Rocky
» After it was 63 trillion in 2023... the 2024 budget deficit will rise to 80 trillion dinars
Today at 5:13 am by Rocky
» Parliament reveals the date of the first evaluation of the governors and determines the party respon
Today at 5:11 am by Rocky
» The President of the Republic informs Al-Araji and Al-Basri: Momentum must be mobilized to eliminate
Today at 5:10 am by Rocky
» Can the Federal Court sue others? A legal clarification of its response mechanism to abuse
Today at 5:09 am by Rocky
» Despite promises to soon stop burning gas.. What is the secret behind Iraq renewing the Iranian gas
Today at 5:07 am by Rocky
» Advisor to Al-Sudani: The dollar is on the way to further decline, and 70% of Iraqi traders have ent
Today at 5:06 am by Rocky
» Iraq exported more than 99 million barrels of oil last February
Today at 5:04 am by Rocky
» Barzani “gives good news” to Kurdistan employees: salaries, land, and loan exemptions
Today at 5:03 am by Rocky
» Alia Nassif: Nour Zuhair returned to the port of Umm Qasr to make deals.. An influential Shiite forc
Today at 5:02 am by Rocky
» The Prime Minister announces the movement of nearly 500 stalled projects
Today at 5:00 am by Rocky
» A government strategy to enhance investments.. Iraq is on the verge of a new era of economic develop
Today at 4:59 am by Rocky
» Ranging between 20% and 50%.. The Kurdistan government decides to reduce service fees, customs dutie
Today at 4:58 am by Rocky
» Al-Sudani: The reform approach in the security services is an integral part of reform in other secto
Today at 4:56 am by Rocky
» Everyone in Iraq wants the Sudanese visit to Washington to be successful, even the factions!
Today at 4:55 am by Rocky
» Sources and experts expect the agenda.. in his bag is the Baghdad dollar and the factions’ truce, bu
Today at 4:54 am by Rocky
» The decision to raise gasoline prices arouses the ire of drivers...a reminder of the large demonstra
Today at 4:53 am by Rocky
» Parliamentary services: 3 important hospitals in Baghdad will enter service at the end of the year
Today at 4:52 am by Rocky
» Iraq signs a contract to supply Iranian gas for a period of five years
Today at 4:50 am by Rocky
» Parliament adds a voting paragraph on amending the Penal Code to its agenda
Today at 4:49 am by Rocky
» His political advisor: We are not afraid of Sudanese entering the elections alone
Today at 4:48 am by Rocky
» Parliamentary services explain the reasons for the rise in real estate prices in Baghdad
Today at 4:46 am by Rocky
» Attia, criticizing the government's decisions: "The citizen's feathers will be ruffled without servi
Today at 4:45 am by Rocky
» Parliamentary Communications: Zain Iraq and Asiacell did not pay their debts
Today at 4:44 am by Rocky
» The Governor of Karbala announces the imminent establishment of the largest industrial city in the c
Today at 4:43 am by Rocky
» A government determination to end the issue of displaced persons in the middle of this year
Today at 4:42 am by Rocky
» Iraq buys gas from Kurdistan to generate electricity
Today at 4:41 am by Rocky
» Parliamentary signatures to include an amendment to the internal regulations to decide the choice of
Today at 4:40 am by Rocky
» In Basra.. a demonstration against foreign workers in Iraqi companies (video)
Today at 4:38 am by Rocky
» Al-Samarrai: Presidency of Parliament is an entitlement to the constituents, and calling it a “frame
Today at 4:36 am by Rocky
» Electronic food supplies in 6 governorates... covering 11 million Iraqis and “writing off” about 700
Today at 4:34 am by Rocky
» Corruption of the Ministry of Transport.. Representatives express their surprise at the minister’s s
Today at 4:32 am by Rocky
» The biggest supporter of the invasion of Iraq.. The death of former US Senator Joe Lieberman
Today at 4:31 am by Rocky
» Iraq is ranked “late.” A list of the most and least safe Arab countries for women
Today at 4:30 am by Rocky
» The Council of Ministers exempts the Gulf Interconnection Authority from guarantee fees: it is a gov
Yesterday at 7:48 am by Rocky
» The Iraqi government raises the size of the 2024 budget, and Parliament is “surprised”
Yesterday at 7:46 am by Rocky
» Popular Movement: We have many economic options away from American hegemony
Yesterday at 7:42 am by Rocky
» The Oil Parliament stresses the need to transfer part of the revenues to the producing governorates
Yesterday at 7:41 am by Rocky
» It will cover 14 regions in eastern Iraq.. A deputy reveals the “border electricity” project
Yesterday at 7:40 am by Rocky
» Experts Warn Mass Migration Threatens US Food Security
Yesterday at 7:37 am by Bama Diva
» Al-Fateh: America occupies Iraq through agreements
Yesterday at 7:37 am by Rocky
» Anger in Iraq over a "sudden decision"... and a reminder of a "general strike" that paralyzed the co
Yesterday at 7:34 am by Rocky
» Parliamentary Committee: Parliament is discussing today a decision that “disturbed” the Iraqis
Yesterday at 7:33 am by Rocky
» Ministry of Electricity: Our production will reach 27 thousand megawatts by May
Yesterday at 7:31 am by Rocky
» Diagnosing the “most important” problems in the oil file between Baghdad and Erbil.. What is the rel
Yesterday at 7:30 am by Rocky
» The Iraqi Fiqh Academy and the Sunni Endowment issue a fatwa to pay Zakat al-Fitr
Yesterday at 7:28 am by Rocky
» The National Bank of Iraq continues its digital transformation by launching its new banking system a
Yesterday at 7:26 am by Rocky
» Parliamentary Investment and the Central Bank are discussing the housing initiative
Yesterday at 7:25 am by Rocky
» The Prime Minister announces the restart of 500 suspended projects
Yesterday at 7:23 am by Rocky
» Al-Barti assesses the region's employees: Your salaries are insured and will be paid after resettlem
Yesterday at 7:21 am by Rocky
» Iraqi-American discussions in anticipation of the Sudanese visit
Yesterday at 7:20 am by Rocky
» Iraq and Turkey hold meetings in Ankara to discuss technical issues related to the development road
Yesterday at 7:17 am by Rocky
» A government parliamentary agreement to support budget revenues and governorate allocations for inve
Yesterday at 7:16 am by Rocky
» Oil: The gas sector is witnessing great development
Yesterday at 7:15 am by Rocky
» A Kurdish-French agreement to develop trade and economic relations
Yesterday at 7:13 am by Rocky
» Exchange companies in Mosul demand that they be entered into the currency selling window
Yesterday at 7:12 am by Rocky