The Iraqi Finance Ministry on 18 January issued a batch of $1bn five-year international bonds guaranteed by the US with an annual yield of 2.1%.

This rate is far below the market interest on Iraq’s non-guaranteed debt. The ministry announced on its website that the proceeds from this sale will be used to finance Iraq’s budget deficit as stipulated in the 2017 budget law, noting that Iraq is paying lower interest on this issue than other countries with similar US-guaranteed bond...