Saleh: Iraq is still within safe levels for loans

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Saleh: Iraq is still within safe levels for loans

Post  Admin on Wed Mar 15, 2017 7:09 pm

3/16/2017 0:00

BAGHDAD / morning / Alaa al-Taie

In response to what is being said about the "inflation" of debt owed by Iraq, assured the Adviser to the Prime Minister for Economic Affairs, the appearance of Mohammed Saleh, said Iraq is still within safe levels, according to the global scale of borrowing and public debt, describing the strategy of the government's economic reform, which included taking inter orders and decisions to deal the imbalance in the structure of the state in economic, financial and developmental aspects as "a complete approach to comprehensive reform to achieve economic stability, development and reconstruction," while the parliamentary economic Committee promised what it called the "intimidation case" of debt as part of the electoral attempts.

Successful strategy

Saleh said in an interview for the "morning", "The strategy of the government aims to carry out a thorough and radical reform to address the imbalance in the structure of the state, including measures and decisions to support the private sector and the economy moving and rehabilitation of state-owned enterprises to overcome the current financial crisis."

Saleh pointed out that "There is a dynamic government to involve the international community in support of Iraq's project to restore stability and reconstruction phase," noting that it "an important step that reflects the extent of Iraq's interaction with countries of the region and the world who supported Iraq in the war against terrorism and the challenges it faces."

Saleh described the OPEC agreement to cut global output as a "positive step", with a significant impact in the financial and Iraq's economic situation in the two directions: the first "short-term", according to external changes and its impacts on the global market, which will contribute to improving the situation of the federal budget for the current year for Iraq through reduced supply and increased demand and will result in price rises, with a share of Iraq from the reduction of production approximately 200,000 barrels of crude oil, as well as the agreement commensurate with the need for global economic growth.

Economic Adviser to the Prime Minister added that "move the placement of the oil market and budget through the reduction accompanying the agreement will lead to a rise in the sale of crude oil prices globally and the inclusion of the federal budget, which prepared the adoption price of $ 42 per barrel of oil while it was almost in oil prices following the implementation of the OPEC agreement to $ 50 is achieved additional revenue for the budget. "

 The other direction, "long-term", was among the favor, "During the period of scalable production growth and the result of the resolution there will be a freeze on investments in the oil fields and the oil sector and limiting themselves to perpetuate the fields or the so-called" investment compensator "annually to maintain production capacity, and this OPEC agreement to be ranked first Vrgin resulting from higher prices as a result of scaled production and the decision of the reduction and the second freeze investment of oil fields and restricted to redeeming investments to maintain production capacity rather than access to new investments result in added money at the present time. "

And on the government's measures for economic reform, Saleh pointed out that the government has prepared a program of economic and financial reform to overcome the current crises, security and finance which continues to be implemented in spite of the collision of some paragraphs barrier real funding, and that the war waged by Iraq against terrorism and sustain the military effort was given priority since led to extend the steps of reform, "pointing out that" in contrast, has made the government's policy are important steps in the rebuilding of the country as well as the victories that dazzled the world and the end of the so-called liberation of the land and rights of succession as well as secure the necessities of life from the salaries and wages and the continuation of priority in the energy representing the sector of investment projects the backbone of the development sector. "

Saleh, who said that "the government has adopted a program to activate the role of the private sector in reducing unemployment and creating jobs by firing six trillion dinars to give the citizens of loans for the completion of industrial, commercial and agricultural projects carried out in coordination between the central bank and private banks by placing conditions easily obtained and guarantees of capitalizing on their owners them and save public money and reduce bureaucracy or manipulation ", he noted that" Rafidain Bank grants over the past years loans to employees and citizens amounted to 900 billion dinars and not recover that money stalled by a large margin still due to poor management of those loans, "noting that" The government has given priority to housing sector to promote the construction boom across a successful strategy recently adopted ".uan parliamentary Finance Committee's remarks on Iraq's debt announced by which amounted to $ 100 billion, advisor confirmed the economic Prime Minister, he exaggerated, pointing out that there is $ 40 billion, subject to the agreement of the Paris Club and back to nine countries has not been settled so far, and in the majority of illegal claims not out of her, as has been written off other debts increased by 80-100 percent, while the other debt and $ 46 billion represents an "internal debt" and not external ungovernable, "pointing out that" installation of religion and the concept differ according to the principle of proportionality. "

 Saleh said that government measures have contributed to the increasing volume of imports, pointing out that "there is a standard of debt requires no more than 3 percent of gross domestic product, as we are now at 8 percent, meaning the debt still exists, in other words not exceed the balance of public debt for 60 percent of GDP, a ratio that is where we are within safe levels, according to the global scale. "

He noted the benefit that the "reason Alabozor current budget deficit lies in operating expenses despite the pressure of spending, to a large extent, and has been part of the operating budget deficit through loans, including the salaries and wages of employees to address," adding that "the bulk of it internal debt and less external debt ".

In turn, he said a member of Najiba Najib Economic Committee, said in a statement, said that "Iraq three types of debt, the first of the former regime's debt and the consequences of previous wars, amounting to nine billion dollars, the second is the Paris Club debt and $ 14 billion in addition to the judicial claims the time of the former regime and a total of $ 45 billion, "indicating that" the new debt came from foreign and domestic loans, including $ 30 billion, the Central Bank of Iraq and approaching the amount of which foreign loans for the period from 2005 until now. "

Najib added, that "the recent loans impeccable has gone on investment projects that will bring in future benefits to the physical and service sides of the electricity and sanitation, infrastructure and railways, Construction and Housing and the benefits of a few sectors."

She said committee member, said "the loan within the amount provided by the International Monetary Fund is five billion and $ 400 million will be delivered over three years," indicating that "it is through the full guarantee from the IMF Iraq could get grants, financial loans within the agreement signed in 2016 with the The international Monetary Fund, called the (SBA), the financial paybacks of Iraq is 18 billion and 300 million dollars. "

Najib pointed out that "the International Monetary Fund receives financial reports every three months on the disbursements of funds, which prevents any financial waste or manipulation of such funds being that gets it will lose Iraq and the international loan and all other grants are expected access of other countries," pointing out that "most of the loans are repaid for many years to exceed ten years and up to 30 years and the benefits of a few.

 " Najib to and drew that "there are new policies are drawn to overcome the failures of the previous budgets, explosive and if applied in the correct format and within the follow-up and supervision of the IMF, Iraq is not going to borrow the next budgets but on the contrary will be able to start paying the current loan incurred by him" .opent Najib, said that " there are positive points are not her attention, including dependence on imports, which is becoming less whether the agricultural sector after the arrival of some of the material to self-sufficiency, including sugar or through the revitalization of the industrial sector areas of sewing clothes or food oil industry or print within the country ", reducing the" case of intimidation of debt, they represent a part of the electoral attempts. "

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