To improve the investment market and comply with the Ministry of Finance’s guidelines, Rafidain Bank has said that it would be issuing the third set of reconstruction bonds in denominations of 500,000 and 1,000,000 Iraqi dinars. The bonds have 6% and 8% annual interest rates, respectively, for two and four years.
The third series of Reconstruction Bonds, which will be available for purchase by residents through January 30, 2024, has been announced by the bank. The sale will operate using the same system as the initial and subsequent series.
There will be two denominations of the bonds available:
- A 500,000 Iraqi dinar bond that has a 6% annual interest rate that is paid every six months for two years.
- A bond with a face value of one million Iraqi dinars that will pay interest every six months for four years at a rate of 8% annually.
The bank makes it clear that anyone who wants to buy the bonds has to apply directly to the bank and provide the necessary identification. The bank will issue a receipt to the buyer for the money paid to buy the bond. This receipt is kept by the buyer until the bond is ready. After the bond is prepared, the buyer gives the bank the aforementioned receipt to obtain the bond.
The bank acknowledges that bonds are traded on the securities market through purchases and sales. In addition, the bond matures ten years from the due date and is then passed to the Ministry of Finance. It’s important to note that Federal Budget Law No. 13 of 2023 exempts the buying and selling of the provided bonds (Reconstruction Bonds) from taxation.
