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Iraq issues USD 1 bln. bond with US guarantee

WASHINGTON, Jan 18 (KUNA) -- Obama administration announced that Iraq's issuance of a USD one billion five-year sovereign bond "is backed by a 100 percent guarantee by the US government of the repayment of principal and interest." The bond was priced at a coupon rate of 2.149 percent, the State Department said on Wednesday.
"This loan guarantee underscores the strong and enduring commitment of the United States to support the government of Iraq in this critical moment in the fight against Da'esh," the statement said, using the Arabic acronym for the so-called Islamic State (IS).
"As part of a comprehensive international assistance package - anchored by an International Monetary Fund-supported reform program - this guarantee provides Iraq access to low-cost financing essential to delivering critical services to all the people of Iraq, while laying the foundation for long-term stability and growth through economic and institutional reforms," the statement affirmed.
Iraq is seeking to issue bonds to address its deficit following the drop in oil prices. (end) ys.gb