Risks facing Iraq in the event of sanctions and debt amounting to 70 billion dollars

Baghdad / Obelisk: Parliamentary Finance Committee revealed, on Saturday, 11, January, 2020, the potential risks in the event of sanctions against Iraq by the United States of America.

Committee member Magda Al-Tamimi said in a statement received to the “obelisk”, that “a meeting was held in the presence of the governor of the Central Bank and the head of the Financial Supervision Bureau and the undersecretary of the finance minister, as well as the deputy director of the Iraqi Trade Bank (TBi), during which he made a presentation on the government side on possible risks In the event that sanctions are imposed on Iraq by the United States of America. ”

She added, “The risks are the possibility to stop supplying Iraq with the dollar, which is an easy measure to take by the United States, because the countries have full sovereignty over their currency, and this would negatively affect the rise in the price of the dollar against the dinar, and here Iraq has no choice but to go to deal in currencies.” Other than what will need for a while is not short, for example, the shift to dealing in the euro currency, which means entering into negotiations that are not easy with European banks such as France and Germany …. etc. ”

She pointed out that “most international banks have difficult conditions and restrictions for dealing with Iraq as an unstable country and have many problems and will be dealt with great caution, in addition to the transition to other currencies requires changing the commercial behavior of the country, and the question that arises is whether the country in question has the ability to Providing Iraq with the amount of currency it will need in cash, as these countries may not have this ability to pump large amounts of cash.

She pointed out that “the United States of America may go to deny certain parties in Iraq from carrying out their activities or may issue a ban on dealing with them by most international companies because of their impact on these companies (directly or indirectly) governed by the interests of those companies, for example. A ban on dealing with certain companies specialized in the marketing of Iraqi oil.

And she continued, “The other danger is the inclusion of certain entities in the ban. These entities may be (people, companies or banks) as the American Treasury provides a list of specific names to prohibit dealing with them in dollars or it may freeze their assets. Here we refer to the committee formed in the General Secretariat of the Council of Ministers Including the Deputy Governor of the Central Bank, the ban books are sent to them, and then measures must be taken against them and their names circulated. In the event that these measures are not taken, it will negatively affect the level of the international classification for Iraq by the International Financial Action Task Force FATF, as this organization is concerned with auditing the classifications. The private E in countries according to periodic periods. ”

And I indicated, “Another possibility is to submit requests by the creditor parties to press for an early payment of their debts (countries or individuals) immediately and here we point out that Iraq owes (28) billion dollars in foreign debt other than the odious debts (the debts of the Gulf states) amounting to ( 41) billion dollars and according to the United Nations Convention on the Immunities of States and Their Property from Jurisdiction in 2004, Article 21 Paragraph (c) thereof, the immunity of the central bank reserve (currency cover) has been achieved. ”

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