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Monday, May 22, 2017

Iraq confirms its ability to pay its financial debts, 22 MAY

Journal  May 21, 2017

Baghdad - Journal News

Some believe that Iraq has been burdened with external and internal debt, while the parliamentary economic committee believes that the country is able to pay the debts and it is in a sound financial position, while the government asserts that Iraq is a country rich in resources and can pay back what he promised.

Member of the Parliamentary Finance Committee Jabar al-Abbadi stressed that Iraq is able to pay the debts owed by the fact that it has fulfilled its obligations and benefits and evidence of the high rating of Iraq's credit according to international agencies, "noting that" this indicates that the country is able to pay its own in the position of Mali sound".

Al-Abbadi said in an interview with «Journal News», that "the debt owed by Iraq, most of the precedent and the amount borrowed by this government is few," noting that "the loans taken not only for the purpose of operational projects, but were investment to be able to pay the debt."

The member of the parliamentary financial committee that "the mechanism followed by the government was clear that these amounts for investment projects to meet the government's obligations," noting that "the debt was a few benefits and comfortable and a good proportion of institutions and international banks to support the budget."

"Some people are trying to link Iraq's public debt with the current government and the current circumstances, but the public debt of the country is estimated at $ 111 billion and the foreign debt reached nearly $ 56 billion by 2014. After that date, Iraq borrowed only $ 12 billion and was borrowed externally, "He said.

He pointed out that "the amount of 56 billion some before 2003 and amounted to about 41 billion, which is outside the Paris Club and was not subject to the settlement that took place in the club and most of the countries that have been borrowed from him has not been claimed until now."

He pointed out that "the remaining debt of up to 40 billion or less, which is internal debt and was up to 50% before 2014," noting that "the amount achieved from 2014 to 2016 came to pay the salaries of self-financing companies losing."

Abadi said that "in the budget 2015 and 2016 banks were paying the losing companies salaries under treasury bonds from the government, but in 2017 the government has begun to give the money directly and without borrowing.

For its part, the government pointed out that most of Iraq's debts are internal, while it noted that the country is rich and can rely on new sources of revenue without the need to borrow.

The adviser to the Prime Minister for Economic Affairs, Dr. Abdul Hussein Al-Anbuge told the «Journal News», that "Iraq hopes in the future that oil prices will rise again to be able to pay the amount owed," explaining that "most of these debts are internal and not external and then the payment is much easier "He said.

Anbuge said that "every religion carries within it a mechanism of payment, which depends on the size of these debts," noting that "mostly soft loans and a grace period."

"The government is seeking to diversify the economy and sources of revenue to reduce reliance on debt by activating state factories and private sector participation, or selling agricultural and industrial land to local investors, as well as a marked increase in tax and fees revenues, which are sources of support," the prime minister said. The state budget without the need to borrow, "noting that" the borrowing was reduced during the current year, excluding bonds issued by the government. "

While the economic expert Abdul Karim Jaber Shangar, "the existence of soft means to Iraq if the choice of the principle of differentiation in the selection of loans, the first investment and then comes loans from the World Bank and some international organizations and bilateral loans between Iraq and a number of countries with financial abundance, while IMF loans are difficult loans for countries that have obtained or are trying to obtain them. "

"This procedure makes the International Monetary Fund the guardian of the economic programs in these countries and naturally put these conditions in front of Iraq some of the problems that lead to the lifting of government support for some poor groups that are in need of support, To other conditions relating to the duration of repayment and interest, and thus the loans issued by the International Monetary Fund away from the status of soft loans or hard.

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