Iraqi Cash Shortage Deepens As Bond Issue Pulled

Iraq’s Finance Minister Hoshiyar Zebari has cancelled plans to issue up to $6bn in international bonds because the interest payable on the debt would have been too high, Deputy Finance Minister Fadhil Nabi says.

Iraq in August decided to tap the international debt market for the first time in nine years, following a cash shortage from reduced oil revenue from the collapse in global oil prices beginning in mid-2014, and increased expenditure from battling the Islamic State (IS) insurgency in the country. Despite near-record export volumes of 3.05mn b/d for September, Iraq pocketed a mere $3.69bn for the month’s crude exports, less than half monthly takings for the first half of 2014 (see graph). Iraq received just $40.33/B for its September exports, the lowest figure since February 2009.


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