Iraq confirms its ability to repay financial debt

Journal May 21, 2017

BAGHDAD – The Journal News
Some believe that Iraq has a heavier internal and external debt while the parliamentary Economic Committee believes that the country is able to repay the debt and it is in a sound financial position, while the government asserts that Iraq is a country rich in resources and what he could repay his trust.
Parliamentary Finance Committee member Jabbar al-Abadi said that Iraq is able to repay his trust debt because it fulfilled its obligations and benefits as evidenced by the high rating Iraq credit rating by international agencies, “noting that” this matter indicates that the country is able to pay back what Bzmtha is in the financial position sound”.
Among Abadi, in an interview for «Journal News», that “the debt owed by Iraq, most of them earlier and the amount borrowed this government a few”, drawing attention to the “loans taken not only for the purpose of operational projects but were investment to be able to pay off the debt.”
The member of the parliamentary finance committee that “the mechanism of the Government was clear that these amounts for investment projects be for the government to fulfill its obligations,” adding that “the debt was low and comfortable benefits of good by and from institutions and international banks to support the budget.”
He said Abadi, that “some are trying to link the public debt of Iraq, the current government and the current circumstances, but the public debt of the country is estimated at $ 111 billion and external debt stood up in 2014 nearly 56-billion, but after that date, Iraq has borrowed up to 12 billion only been borrowed externally “.
He pointed out that “the $ 56 billion each year before 2003 and amounted to about 41 billion, debt outside the Paris Club was not subject to the settlement that has been in the club and that most of the countries that have been leveraged from it did not call them until the moment.”
He noted that “the remaining debt up to 40 billion, or slightly less than an internal debt was up to 50% before 2014,” noting that “the amount realized from 2014 until 2016 came in order to pay the salaries of self-financing loss-making companies.”
Among Abadi, that “in the budget of 2015 and 2016 were the banks to pay salaries to companies losing under treasury bonds from the government, either the government in 2017 the government began to give the money directly and without borrowing.”
For her part, the government indicated that most of the debts owed by Iraq are internal, while drawing attention to the country’s rich and can rely on new sources of revenue without the need to borrow.
The Prime Minister for Economic Affairs Advisor Dr. Abdul Hussein Al-Anbuge’s «Journal News», that “Iraq hopes in the future that oil prices rise again to allow him to pay off his trust,” he said. “Most of these internal debt and not external and then the payment is much easier “.
He Anbuge that “every religion carries within the payment mechanism, which depends on the size of these debts,” noting that “most of them soft loans and the grace period.”
Economic Advisor to the Prime Minister, said, “he said the government is seeking to diversify the economy and revenue sources to reduce dependence on debt by activating the state factories and the participation of its own sector, or the sale of agricultural and industrial land to local investors, as well as a marked increase in taxes and fee income all of which constitute sources of support the state budget without the need to borrow, “noting that” has been reduced borrowing during the current year, with the exception of bonds issued by the government. ”
While noted economic expert Abdul Karim Jaber Hnjar to, “the existence of means of soft against Iraq if it chose the principle of differentiation in the selection of loans, the first of the investment and then followed by the World Bank loans and some international organizations and bilateral loans between Iraq and a number of financial abundance countries, while the international Monetary Fund loans from foreign loans for countries that have received or are trying to get them. ”
He Hnjar, “This procedure makes the International Monetary Fund as a trusteeship owner of the economic programs in those countries is natural that these conditions are put in front of Iraq some trouble that lead to the lifting of government support for some of the poorer segments that are already in need of support, as well as to other conditions relating to the duration of the repayment and interest, and such loans issued by the international Monetary Fund is far from the status of soft loans or difficult to be. ”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s