Released on: August 19, 2008, 4:52 am

Press Release Author: Lisa Hardcastle

Industry: Financial

Press Release Summary: Private Equity Placement exploring Iraqi bonds as lull in
violence sets in.

Press Release Body: Private Equity Placement are thought to be encouraged by the
recent lull in violence in Iraq; so much so, in fact, that they are rumored to be
investing in the sole Iraqi government bond which has narrowed in yield against US
treasuries after the United Arab Emirates wrote off $7bn of its debt.
Falling credit derivatives prices have fallen by more than 75 basis points since
May. This has reduced the cost to insure Iraqi debt against default by €75,000
($118,000) annually for €10m of debt over five years.
The US-led forces have re-trained and equipped the new Iraqi army which has had a
number of important tactical successes against al-Qaeda in Iraq. Private Equity
Placement believe that the UAE’s move may be mimicked by other Gulf states resulting
in additional debt being written off.
The country has benefited from its oil exports, which have boosted the central
bank’s reserves to just under $40bn, up from $31bn at the end of last year. Further
debt reduction would have the effect of transforming Iraq into a net external
creditor.
Private Equity Placement said there had been a drop in the violence in many parts of
Iraq this month after religious leaders renounced al-Qaeda extremists.


Web Site: http:www.privateequityplacement.com

Contact Details: Lisa Hardcastle
info@121pressonline.com