Finance Committee: $ 123 billion of Iraq 's debt of internal and external

01/23/2017 (21:01 pm)



 Baghdad / peace Zidane

Parliamentary Finance Committee confirmed, yesterday, that the size of Iraq's internal and external loans amounted to $ 123 billion, borrowing criticizing the Government's policy, and invited them to follow a policy of austerity.

So criticized experts in financial matters the government continues to borrow the internal and external policy, warning of the dangers of the continuation of this policy on the future of the country.

The government decided according to the current year budget borrow $ 19.6 trillion dinars (16.5 billion dollars) from local and international institutions to fill of 21.6 trillion dinars deficit ($ 18.2 billion).

As the budget allowed the Treasury to issue money orders worth $ 12 billion to pay off the loans in foreign oil companies operating in the country.

Iraq has signed the credit cooperation with the International Monetary Fund agreement for a loan of $ 18 billion, also signed an agreement with the United States to secure a loan of $ billion.

Iraq and allocated according to the current year budget $ 5 trillion dinars (4.2 billion dollars) to pay the benefits of internal and external loans.

The Finance Ministry said in separate statements, seen them (range), "The foreign ministry issued government bonds guaranteed by the US government one billion dollars," indicating that they "bond for five years and an interest rate of 2.1% per annum."

She drew the Ministry of Finance that "the outcome of this bond will be used to finance the budget deficit, based on the General Budget Act, which authorized the Minister of Finance issuance of those bonds."

On the other hand, the Ministry of Finance said that "the Undersecretary of the Ministry of Finance Fadel Prophet discussed during his meeting with a delegation of the World Bank technical in the ministry's headquarters, special topics to support the reconstruction of areas affected by terrorism fund." He called the Prophet to "increase the loan financing to fund the reconstruction of areas affected by terrorism."

Commenting on the internal and external borrowing policy, confirmed the MP pros Hamadoun, a member of the parliamentary finance committee, that "the government's misguided policy in the increase in loans, will be charged to future generations many mobilized, and was supposed to resort to austerity and self-realized by OPEC agreement from high in oil prices. "

She said Hamadoun, told the (range), that "internal and external loans amounted to $ 123 billion, which is a very large number, especially since some of the loans will go to support the budget and not activating the productive sectors."

He considered a member of the Finance Committee that "the government has decided to eliminate the industry through the final decision, which allows employees to retire or move other companies to the Ministry."

Hamadoun added that "ministers who hosted the Finance Committee during the discussion of the current year budget refused to reduce their expenses and thus forced the government to bridge the fiscal deficit through borrowing."

MP, however, saying that "borrowing, which goes to the reconstruction of the affected areas as well as the development of factories, agriculture has no objection to it because it will switch to support the budget in the coming years."

However, economist Abdul Rahman al-Mashhadani, played down fears the expansion of government borrowing policy, he says that "Iraq is hard to reach what we have reached Egypt and Greece because of the debt crisis, because we put so much better and the debt is still not equal to the GDP."

Al-Mashhadani said that "In the long term debt continuation may be forced Iraq to sell oil fields to creditors for a specified period of time to repay the loans," adding that "the increase of external debt and internal index is very serious and if oil remained the same will lead to increased borrowing."

He noted economist that "Iraq will exceed the plight of the loans if the price of a barrel of oil to $ 80," noting that "Iraq has allocated $ 5 trillion dinars to pay off the interest on the loans and the result in the next year, this amount will increase due to the repayment of loans maturity."

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