Thread: Iraq/Dinar News. 09/05 to 01/14/07

Return to international markets, sounds like the start of things too come....:0))))


Iraq plans to issue a $2 billion bond in the next few weeks as part of a debt settlement that marks the country's return to international markets after wars and sanctions, Finance Minister Ali Allawi said.

'The bond will extinguish the claims of most large private sector creditors on Iraq. It will fulfil a major goal of the interim government,' Allawi said.

Banks and foreign suppliers, including multi-nationals such as Hyundai, have around $20 billion in debt on Iraq, mostly dating from the 1980s, when Iraq was fighting Iran and its economy was on a war footing.

Under a deal reached with large private sector creditors in Singapore last month, creditors agreed to swap 20 per cent of their principal and interest for a bond and cancel the rest, Allawi said.

The 20-year bond, which is being arranged by Citigroup and JP Morgan, will carry a coupon of 5.8 per cent and is likely to be listed in Europe for trading, he said.

Around 80 per cent of creditors with smaller claims on Iraq, typically under $35 million, have agreed to take a 12.5 per cent cash payment of principal.-Reuters

http://www.tradearabia.com/tanews/ne...764&Sn=&Cnt=30

Hi kristin/all,

Some people have asked me my opinion on when to 'offload' their Dinar. Well, the Iraqis at some point MUST open the Dinar to the World currency market. When the Iraqi Government stabilizes and security is reigned in by about 75% the wealth of the nation can start to multiply. Sometime soon or at that time the Dinar has to be traded in the World basket. Iraq can't get full use of it's wealth, contracts, investments, etc if they keep the currency closed off. And there, my friends, is your answer. At the bare minimum you should hang on to the Dinar to see WHAT WILL HAPPEN on the OPEN MARKET. The few bucks you will make by selling off early are not worth gaining until you've given this thing as much as possible a chance of success.

Bit like with P**s, be patient, our time will come for both. Look to diversify into other investments until that time. Knowing a reval could happen anytime it's quite a good 'buzz' opening the laptop every morning because one of these days there will be some happy, wealthy folk out there.

Hi all,

Some people have asked me my opinion on when to 'offload' their Dinar. Well, the Iraqis at some point MUST open the Dinar to the World currency market. When the Iraqi Government stabilizes and security is reigned in by about 75% the wealth of the nation can start to multiply. Sometime soon or at that time the Dinar has to be traded in the World basket. Iraq can't get full use of it's wealth, contracts, investments, etc if they keep the currency closed off. And there, my friends, is your answer. At the bare minimum you should hang on to the Dinar to see WHAT WILL HAPPEN on the OPEN MARKET. The few bucks you will make by selling off early are not worth gaining until you've given this thing as much as possible a chance of success.

Bit like with P**s, be patient, our time will come for both. Look to diversify into other investments until that time. Knowing a reval could happen anytime it's quite a good 'buzz' opening the laptop every morning because one of these days there will be some happy, wealthy folk out there.

I am not saying this but have just read it elsewhere, keep it in mind it is a rumour, not confirmed as of yet. See no reason why after all the facts Mike and I have given over the last 4 months that the odd rumour or two can't be thrown into the equation as well seeing as in my opinion we're not far off a reval.

A Biap MCT guy’s local TCN said there is a buying frenzy in Baghdad as much as .08 a Dinar. This may just be a local thing or BS, I don’t have a clue.

Ok, BIAP= Baghdad International Airport, MCT= Movement Control XXX,
TCN= Third Country National (hired to do much of the manual labor). So this is the word on the street in Baghdad. (.08)

I am not saying this but have just read it elsewhere, keep it in mind it is a rumour, not confirmed as of yet. See no reason why after all the facts Mike and I have given over the last 4 months that the odd rumour or two can't be thrown into the equation as well seeing as in my opinion we're not far off a reval.

A Biap MCT guy’s local TCN said there is a buying frenzy in Baghdad as much as .08 a Dinar. This may just be a local thing or BS, I don’t have a clue.

Ok, BIAP= Baghdad International Airport, MCT= Movement Control XXX,
TCN= Third Country National (hired to do much of the manual labor). So this is the word on the street in Baghdad. (.08)

Originally Posted by Adster

I am not saying this but have just read it elsewhere, keep it in mind it is a rumour, not confirmed as of yet. See no reason why after all the facts Mike and I have given over the last 4 months that the odd rumour or two can't be thrown into the equation as well seeing as in my opinion we're not far off a reval.

A Biap MCT guy’s local TCN said there is a buying frenzy in Baghdad as much as .08 a Dinar. This may just be a local thing or BS, I don’t have a clue.

Ok, BIAP= Baghdad International Airport, MCT= Movement Control XXX,
TCN= Third Country National (hired to do much of the manual labor). So this is the word on the street in Baghdad. (.08)

Hi Adam,

Sounds good to me, and I get same feedback from interior, so something is happening, but the best news was the meetings between all groups to insure peace, this was quite a surprise given the reports again of election irregularities. What else is new? (g) The street news is totally different than major media news, so some things never change.

Good luck to all, Mike

You mean this Mike? Yea, great to see them getting together. The Sunnis are the most likely to cause a Civil War but if they can make an agreement then they can stop the in fighting. There is too much pressure on them all to stop the fighting, it will happen. With the amount of wealth within the Country the terrorists can be 'bought off'.

02 Jan 06
Baghdad: A delegation from the main Sunni Arab National Accordance Front was to meet yesterday with senior Kurdish officials, possibly holding preliminary discussion about the formation of a coalition government after final election results are released later this week.

http://www.gulfnews.com/region/Iraq/10008902.html

A RETURN TO INTERNATIONAL TRADING 19/1, HOOORRAAYYYYYYYYYYYYYYYYYYYYY. REVAL IS NOT FAR OFF.



EARLY $3 billion worth of bonds bearing the name of the Republic of Iraq are scheduled to begin trading in London on January 19, in a private placement that will mark the troubled country’s first appearance in the international debt markets.

The bonds will pay an annual coupon of 5.8 per cent and are due to mature in 2028. The debt will be guaranteed by the Iraq Government.

Creditors speaking for around $14 billion of claims have agreed to the debt swap and will receive the bonds in specially designated accounts at EuroClear, the settlement and clearing operation, on January 19.

There will be no material restrictions barring bondholders from selling their entitlements for cash and the bonds will be free to trade on the open market in much the same way as the debt of other emerging economies.

Because the bonds will be placed with creditors rather than sold to investors, there will be no underlying issue price against which their value may be measured: holders will have to wait until the debt finds its level on the market when trading begins.

A number of factors are likely to weigh on sentiment, including the fact that Iraq’s creditworthiness as a borrower has never been properly assessed by independent ratings experts. Political concerns and the country’s continuing instablility are also likely to curtail demand for the bonds from potential investors.

However, analysts expect keen interest from hedge funds, where several specialist firms have amassed huge fortunes trading the debts of hard-to-value borrowers.

The bonds will effectively cancel the claims of creditors speaking for about 60 per cent of outstanding commercial claims on Iraq.

Smaller creditors speaking for a further $1.6 billion have already agreed to a deal under which they will receive a one-off cash payment equivalent to 12.5 per cent of the sum that they were owed, up to a maximum of $4.3 million.

Iraq emerged from the two Gulf wars with total debts of more than $200 billion. About 5 per cent of the country’s oil revenue goes toward war reparations, including compensation to Kuwait for the 1990 invasion.

Ali Allawi, Iraq’s Finance Minister, described the deal as a milestone on the path toward resolving Iraq’s Saddam-era debt.

A RETURN TO INTERNATIONAL TRADING 19/1, HOOORRAAYYYYYYYYYYYYYYYYYYYYY. REVAL IS NOT FAR OFF.



EARLY $3 billion worth of bonds bearing the name of the Republic of Iraq are scheduled to begin trading in London on January 19, in a private placement that will mark the troubled country’s first appearance in the international debt markets.

The bonds will pay an annual coupon of 5.8 per cent and are due to mature in 2028. The debt will be guaranteed by the Iraq Government.

Creditors speaking for around $14 billion of claims have agreed to the debt swap and will receive the bonds in specially designated accounts at EuroClear, the settlement and clearing operation, on January 19.

There will be no material restrictions barring bondholders from selling their entitlements for cash and the bonds will be free to trade on the open market in much the same way as the debt of other emerging economies.

Because the bonds will be placed with creditors rather than sold to investors, there will be no underlying issue price against which their value may be measured: holders will have to wait until the debt finds its level on the market when trading begins.

A number of factors are likely to weigh on sentiment, including the fact that Iraq’s creditworthiness as a borrower has never been properly assessed by independent ratings experts. Political concerns and the country’s continuing instablility are also likely to curtail demand for the bonds from potential investors.

However, analysts expect keen interest from hedge funds, where several specialist firms have amassed huge fortunes trading the debts of hard-to-value borrowers.

The bonds will effectively cancel the claims of creditors speaking for about 60 per cent of outstanding commercial claims on Iraq.

Smaller creditors speaking for a further $1.6 billion have already agreed to a deal under which they will receive a one-off cash payment equivalent to 12.5 per cent of the sum that they were owed, up to a maximum of $4.3 million.

Iraq emerged from the two Gulf wars with total debts of more than $200 billion. About 5 per cent of the country’s oil revenue goes toward war reparations, including compensation to Kuwait for the 1990 invasion.

Ali Allawi, Iraq’s Finance Minister, described the deal as a milestone on the path toward resolving Iraq’s Saddam-era debt.

Free-Dinar Commission update..................

For those involved with Free-Dinar, all commissions have been merged from old system to new data base and have been balanced and delivered. I received accurate update today along with balances owed from old system, and December checks were just sent out.

Good luck to all, Mike