Selling foreign bonds to fill budget deficit

9/14/2015 0:00

Baghdad, Omar Abdel-Latif


Government is conducting preparations for the implementation of the issuance and sale of securities of foreign markets, the process of more than $ 6 billion, according to the report by the Committee on Economy and Investment in the House of Representatives, while described the measure as well as external borrowing by »negative», as the Finance Committee pointed out that external borrowing turn will increase the state budget debt for years Mqublh.oukalt member of the Committee of Economy and Investment Rep. Najiba Najib, (morning) that borrowing from international financial institutions like the World Bank and the IMF approved in the state budget for the current year 2015 and up to 3 billion and $ 500 million, but today we see that State heading toward the issuance of bonds and sold in foreign markets by more than $ 6 billion because they desperately need to provide liquidity and fulfill its obligations towards the war on Daash joints and financing of the national economy and the activities of the other country.


And warned that the country faced the problem of credit rating or a sovereign guarantee, which then appeared to »negative» when it wants to issue bonds abroad, and this generates a reservation at companies that want to buy, noting that the Finance Minister, Hoshyar Zebari, Economic Advisor to the Prime Minister Dr. appearance of Mohammed Saleh form a delegation to negotiate with the companies to change the rating, which would increase the interest rate by 10 percent, a sign that the state is forced to go in this direction after it ran out of all the solutions have because of lower oil prices, which was the only source of funding for the general budget of Dolh.mn his part, said a member of the Finance Committee MP Hussam punitive, that the committee was opposition in the past to the issue of external and internal borrowing to cover the deficit in the state budget, noting that the state now forced to this type of borrowing.

He's (morning) that the rapid deterioration of oil prices and speculation and foreign policy has hurt the Iraqi economy, prompting the state to the trend of foreign borrowing, adding that this type of borrowing burden on the state and the generations coming debt and payment of interest over the years, and expressed hope that this phase be temporary out of the bottleneck and overcome the imbalance in the economic sector through market-oriented economy and the development of industry and agriculture sectors and reduce dependence on oil in the financing of the general budget of Dolh.aly it invited the Executive Director of the Association of private banks to Tariq vacationer to the need to exploit developments in the economic sector in the country the crisis by reducing expenses and manage the money properly and to maximize revenue.

He said in an interview (morning) that the decline in oil prices impact in all exporting countries, including Iraq, noting that this crisis makes us pay attention to the revitalization of other sectors and the need for there to be a horizontal expansion in tax collection and Alcomerk process, not an increase, relying on the revitalization of the agricultural and industrial sectors leading to obtain a large force in the local economy.


http://www.alsabaah.iq/ArticleShow.aspx?ID=100284