Finance announces the launch of the second issuance of reconstruction bonds worth more than one trillion dinars

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Finance announces the launch of the second issuance of reconstruction bonds worth more than one trillion dinars

On Tuesday, the Ministry of Finance announced the second issuance of reconstruction bonds worth over one trillion dinars.

The Ministry of Finance, in cooperation with the Central Bank of Iraq, has announced that it will make the second issuance of reconstruction bonds available at a value of 1.5 trillion Iraqi dinars. This decision was made due to the high demand for trading in national bonds, which resulted in the full subscription of the first issuance amount. The second issuance will follow the exact mechanism as the first version.

The speaker stated that the measure was being implemented in accordance with the government program’s paragraphs that aim to enhance the development and investment aspects of the country. This includes the reconstruction and construction movement, as well as the development of financial and monetary policies. The measure also provides opportunities for citizens to contribute to the overall economic activity by investing in bonds.

The speaker explained that the bonds are backed by a guarantee from the Ministry of Finance. To acquire the bond, one must submit an application to an official bank that is approved and registered with the Central Bank. The Ministry encourages both investors and citizens to take advantage of this opportunity but notes that the issue size will be limited.

The Ministry clarified that the second issuance of tradable bonds worth 1.5 trillion Iraqi dinars is available in two categories on the Iraqi Stock Exchange.

The first is priced at 500,000 dinars with a 6% annual interest rate for a two-year term.

The second item is priced at 1 million dinars with an 8% annual interest rate for a four-year period.

The Ministry stated that the purchase and trade of the offered bonds are tax-exempt under the General Federal Budget Law No. 13 of 2023.