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The Finance Committee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate


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Iraq's budget: $ 4.6 billion for external loans and public debt of $ 130 trillion

04:37 - 06/01/2019

 
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Private - Mawazin News 
A member of the Finance Committee parliamentary Faisal al-Issawi, on Sunday, the existence of 4 billion dollars in the budget as benefits to Iraq's foreign loans, while noting that Iraq is indebted to the amount of up to 130 trillion dinars. 
"The budget includes 4 billion dollars as interest on foreign loans obtained by Iraq," Al-Issawi said in an interview with Mawazine News. "The presence of 10 billion dollars is financed by foreign loans," he said. 
He added that "the debts of Iraq up to 130 trillion dinars, which is partly divided as compensation for the invasion of Kuwait and the Paris Club debt section and another part of the former regime."

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Monday 14 January 2019 01:34 PM
| Number of readings: 286

France cancels Iraq debt through Paris Club


 

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BAGHDAD / Prime Minister Adel Abdul-Mahdi on Monday thanked French Foreign Minister Jean-Yves Lourdien for his country's position on canceling debts owed by Iraq through the Paris Club.

"France is a country that is friendly to Iraq and its relations are very important for its position and its strong and distinguished role. We look forward to a greater contribution and presence in the fields of economy, services, culture and education, in continuation of France's position with Iraq in its war against Da'ash, And to continue coordination and communication on support for security and stability in the region.

He pointed out that "the democratic experiment in Iraq is being strengthened and made progress for the benefit of all Iraqis, and that a supporter is not an Iraqi industry but a backward and extremist thinking industry, calling for building balances that support moderation, moderation and civic values." He stressed his keenness to develop partnership with France in combating terrorism, , And expressed full readiness to overcome obstacles and legacies.

The Prime Minister thanked France's position to cancel the debt owed by Iraq through the Paris Club, while proposing a study twinning between the cities of Paris and Baghdad welcomed by the French side and promised to study.

For his part , the French Foreign Minister said that we came to declare our full support for Iraq and its government and to express France's will to expand relations with Iraq and to continue to stand by Iraq in building after our supporting position in defeating the support and support of the Iraqi forces. He added that Iraq has become a key player in stability and its policy. And that France will go forward with the partnership and cooperation with Iraq and support the Iraqi government, which is leading Iraq successfully, referring to the upcoming visit of French President Macaron to Baghdad to reaffirm support and develop friendly relations and cooperation. The existing partnership between the two countries. Finished

http://aynaliraqnews.com/index.php?aa=news&id22=112251

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  • yota691 changed the title to France cancels Iraq debt through Paris Club
  • 4 weeks later...

Sound the alarm “Iraq’s debts”, betting the oil country to creditors

By Editor
 
January 5, 2019
 
- In Releases
 
 
 
 

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Shatha Khalil *
Iraq is entering the circle of danger because of the doubling of debts and the rise of them , where the expert and economist , Iraqi professor Dr. Abdul Rahman Najm Mashhadani confirmed the warning of the Deputy President of the International Monetary Fund to the Iraqi government in the “Kuwait Conference for the reconstruction of Iraq” that the policy of borrowing has become dangerous to Iraq and the interests that Iraq must pay it in the year 2022 about (60%) of its revenues, i.e. it will be unable to repay its debts and the payment of the interests on them also, Iraq is moving towards a real disaster that the government does not care about it .
Mashhadani stressed that Iraq during 2014 and 2016 wasted $ 202 billion, which came from $ 36 billion in foreign loans; $ 23 billion from the decrease of reserve in central bank, $ 33 billion comes from the rise of in domestic debt, and (120) Billion dollars of oil revenues.
Mashhadani added that Iraq needs 30 years to repay its internal and external debts, which will put Iraq’s oil resources for many years under the mortgage of banks and creditor countries.
In the same context, specialists stressed what was reported in a recent and important news , confirmed that there are more than (4) million government employees and (3.7) million retirees, plus 2 million Iraqis registered under the so-called social welfare network that they receive monthly salaries to lift them out of poverty.
The Ministry of Planning, according to figures and statistics, sounded the alarm that began to threaten the body of the Iraqi state and the future of development, in a country that its government was forced to borrow for the third year in a row to secure (42) Billion ” dollars annually to cover its operating budget, and experts described the private sector as the savior, in the event that the State has started to support it and urge it to work again in the local market.
Mashhadani criticized the budget of 2019 because it is illogical, and there is an exaggeration of operational figures, surprising the context of the distribution of proportions to the provinces and ministries, and pointed out that he was expected to press the expenses, not to maximize, adding that the budget needs to be significantly modified because the large increase is suicidal, because of the large deficit and borrowing, stressing that in (2022) Iraq will not be able to repay its external debt only by paying (60%) of its imports !!
Economists and experts said that the proposed draft bill (2019) , shows any follower that Iraq is steeped in its debts and the interests of previous debts, which may amount to the extent that Iraq would lose more than (15%) of its budget to pay these debts, if oil prices did not increase , It would be possible that these debts and their payments would amount to 70 percent of Iraq’s annual budget.
A member of the Iraqi Finance Committee in the Iraqi parliament Rahim Darraji, said that since 2003 and to date, Iraq resulted in many debts due to the wrong policies of successive governments, and that the governments that took power has no wisdom in managing the financial and monetary policy of the country, and the budgets of Iraq’s previous budgets were exaggerated and lack of good management and not based on study and planning, but on the basis of so-called fill-in spaces, that future generations will bear the current debt burden.
A member of the economic committee in the Iraqi parliament, Nora al-Bajari, said that the debts that have burdened the Iraqi economy caused by rampant corruption in the country, and the fight against the terrorist organization ISIS, in addition to the seizure of officials and parties affiliated to take over projects in the deals of corruption.

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The total amount of these benefits and repayments to Iraq about 12423.5 billion Iraqi dinars, equivalent to about 12770 billion dollars.
When borrowing is positive?
State borrowing can be useful and positive in many situations, most notably:
• States should have plans and objectives for borrowing, with their causes, dimensions and sources, and not for patchwork.
• The borrowing should not be based on sovereign guarantees in a way that guarantees the unity of the country and non-interference in its affairs.
• The borrowing should be for urgent necessities such as wars or investment to maximize returns.
• The State should have the proven capacity to serve the debts and repay the debts within their deadlines without renewal.
• The lending state should be easy and can give some permissiveness such as reprogramming loans.
• Not to borrow with greedy countries or to have hostile objectives or to save grudges with borrowers.
• Prior intentions must be made to restore the loan schedule or to extinguish it or settle it amicably without acquiescence.
• Borrowing is a unanimous collective decision and not based on an individual opinion and involves corruption.
• There is a real will to pay loans on time and not to beg to postpone them year after year.

Iraqi Finance Committee:
The Parliamentary Finance Committee has not classified foreign loans that its value is more than $ 70 billion, some of which are bad debts that were considered debt despite being subsidized during the first Gulf War. Some of them can also can be settled at the Paris Club for Debt. Other debts can be negotiated to extinguish them or convert them into investments or any formula agreed upon, as part of their political and military goalsand as done with a political system that has ended and can not pay any dollar. According to data provided by Iraq in 2012, Iraq ranked (60) between countries in terms of indebtedness, which is a good rank if there have been serious policies to address the debt, but the reality is not telling good news l, as external loans and internal indebtedness multiply year after year, noting that in the draft federal budget for the year 2018, it was planned to address the budget deficit of (12) trillion dinars, by authorizing the Ministry of Finance to find External sources of borrowing, as well as the inclusion of expenditure paragraphs to be financed through loans previously agreed, leaving the door open to borrow from the Central Bank by treasury bills, bonds, credit and other available means.
This means that loans are generated annually in the hope of rising oil prices, a possibility that is difficult to achieve , if not impossible, because alternatives to oil are possible and can prevent any crises to supply black gold (oil), after there are more possibilities for export, and to limit the crisis of hgh prices , a the most serious issue is that the IMF has long hands in Iraq and can influence the government to make decisions that do not take into account the interests of the poor, which are increasing annually. The measures for economic reform and increasing national income need an administration and will that are not currently available, There is a real need for (200) billion dollars, in order to put things back to normal, which requires attention before it is too late.

Note: The tables are for Rawabet center

Translated by : mudhaffar al-kusairi

Economic Studies Unit

Rawabet Center for Research and Strategic Studies

https://rawabetcenter.com/en/?p=6841

 
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Thanks for the article Butifldrm.  If Iraq would go after all the corrupt politicians who have been ripping off the Iraqi wealth and shake them down like Saudi Arabia, the debt could be paid down or off quickly.  Start with Maliki and his sons, that would account for 100B.  

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  • yota691 changed the title to Sound the alarm “Iraq’s debts”, betting the oil country to creditors
  • 2 weeks later...

Parliamentary Finance: Iraq will pay its external debt until 2053

15:40 - 27/02/2019
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Information / Special ...

The parliamentary finance committee confirmed on Wednesday that the Iraqi government will continue to pay the country's external debt until the end of 2053.

"The foreign debts of Iraq are divided into two parts, which will be fully paid by the end of 2024," committee member Ahmed Hama said in a statement. "The other part will be completed by the end of 2053 as the government has not submitted On international borrowing again. "

He added that "Parliament obliged the government not to go towards external borrowing to fill the budget deficit during the current year and will continue this decision in the coming years to prevent the rise of foreign debt," noting that "debt repayments will be scheduled on the public budgets and not from surplus funds high oil prices" .

The coalition of victory was likely, earlier, go to the surplus from the budget of 2019 towards the launch of grades for graduates and the reconstruction of cities liberated from the call of the terrorist and the payment of external debt.

https://www.almaalomah.com/2019/02/27/391010/

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2 hours ago, King Bean said:

 

Apparently, the only bank in the world that Iraq DOESN'T owe a loan payback. :moneybag:

 

                Related image

 

Watch for the articles to come out next week . . . " National Australia Bank loans Iraq 500 million Dollars - CEO says glad to step up and ' HOP TO IT  " . . . small bank DEEP pockets;)

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  • yota691 changed the title to Deputy reveals cases of corruption in the amount of indebtedness of Iraq
30-05-2019 03:13 PM
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Baghdad

Revealed the deputy of the Finance Committee Parliamentary Ahlal Dulaimi, on Thursday, there are cases of corruption in the amount of indebtedness of Iraq, noting that the economy of Iraq does not bear more foreign borrowing.

"The amount of indebtedness of Iraq is very large, and part of it went to the pockets of corrupt and some political parties, through the imaginary projects in the absence of transparency from 2003 until the end of 2014," Dulaimi said in an interview with Al Jazeera Net.

"The budget of 2014 contains external and internal loans disbursed without the knowledge of anyone in mysterious circumstances because it was not approved within the parliament with the provision of accounts final to them."

"Dilaimi pointed out that" there are debts have been disbursed, and the country is obliged to pay its dues and benefits, and "these funds did not go to achieve development, but pockets of corrupt."

She pointed out that "the proportion of loans in each budget after 2003, between 20 and 25% of the total budget, because of the failed economic policies of previous governments, which are economic plans indiscriminate not dependent on the economy, but on the parties and businessmen loyal to them, and tampering with the country's ability to During the militias, according to their expression. "

"The Finance Committee has taken a decision during the current parliamentary session to prevent the government from borrowing abroad, as was approved in the budget of 2019, because the country's economy does not bear more foreign borrowing, which includes the risk of reducing support for the poor and raising the prices of derivatives Oil and other taxes. "

 
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  • yota691 changed the title to The debts of Iraq .. Challenges facing the Iraqi economy
 
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Today, the Iraqi economy is facing huge challenges: a high debt volume, with $ 15 billion being allocated to repay debt and interest payments in 2019 as a result of increased borrowing over the past 10 years.

A matter attributed to specialists, according to "Al Jazeera Net", to the financial and administrative corruption prevalent in the country, and go to the pockets of the parties to finance their activities instead of sustainable development. 

The story of Iraq began with the religion in the Iran-Iraq war in the 1980s, where the debt out of the sum of eighty billion dollars, and in 2003 reached Iraq's debt to nearly 120 billion dollars, before the debt is settled with some countries by paying the principal Without any benefits, in cooperation with the United Nations and the International Monetary Fund .

 
 


In 2014, Iraq was hit by a financial crisis with a third of its territory out of government control, plus high operating costs, making it resort to external and domestic borrowing to fill its budget deficit and cover war costs. 

The foreign debt, according to the International Monetary Fund (IMF) , is currently $ 85.3 billion. It includes the entitlements of foreign companies operating in the energy sector and the purchase of electricity and gas from Iran , while the internal debt is $ 40 billion, mostly to the central bank and the three government banks: Rafidain, For trade, and the National Retirement Authority.


Today, Iraq owes the Gulf states about $ 41 billion, borrowed from Saddam Hussein's former political system, as well as Paris Club debt of $ 9 billion. Iraq's debt has come close to the level of the red line to reach 55% of GDP. 

The director of the Department of Financial Operations and Debt Management of the Central Bank of Iraq, Dr. Mahmoud Dagher , said in a press interview that " Iraq's debt is not classified as excessive debt, because they are within the rational range, when compared with GDP. 

"Iraq's debt currently stands at $ 68 billion, divided into $ 40 billion in domestic debt and $ 28 billion in foreign debt," he said.

He added that some international organizations add to the total debt of $ 41 billion to become a total of $ 109 billion, while these debts are not "suspended" in terms of payment of interest and receivables, and need to negotiate, and may be extinguished of 80%, as happened with the Paris Club countries 

Dagher pointed out that some parties calculate the entitlements of foreign companies operating inside Iraq , as well as the import of electricity and gas within the debt, which is incorrect, because these are settled annually in the general budget, and allocate funds. 

He stressed that the compensation of Kuwait is within the debt, and the rest of which 4.3 billion dollars, "We pay annually 0.5% of oil revenues."

He pointed out that there are two types of debt: the first went to fill the budget deficit, specifically during the years 2015 and 2016 because of increased military spending to recover land from the state organization, which was accompanied by a financial crisis due to low oil prices, which made the state go to borrow to fill the budget deficit Operational insurance for staff pensions, war costs and others. 

The second type of religion went to investment projects to develop them, the private loans to the International Monetary Fund and the World Bank and the Japan Agency for International Cooperation "JICA" and others, according to the same speaker. 

Dagher pointed out that Iraq began repaying loans and interest in 2018, and is expected to end the external loans during the next ten years, because the loan period ranging from five to seven years, while the domestic loans are very few and are settled annually.


The amount of indebtedness of Iraq is very large, and part of it went to the pockets of corrupt and some political parties, through fictitious projects in the absence of transparency from 2003 until the end of 2014," said Deputy Speaker of the Parliamentary Finance Committee Ikhlas Dulaimi. 

"The budget of 2014 contains external and internal loans disbursed without the knowledge of anyone in mysterious circumstances because it was not approved within the parliament with the provision of accounts final to them." 

Sistani Dulaimi pointed out that there are debts disbursed, and the country is obliged to pay its dues and benefits, and "these funds did not go to achieve development, but pockets of corrupt."

She pointed out that "the proportion of loans in each budget after 2003, between 20 and 25% of the total budget, because of the failed economic policies of previous governments, which are economic plans indiscriminate not dependent on the economy, but on the parties and businessmen loyal to them, and tampering with the country's ability to during the militias, according to the expression. 


For their part, economists emphasized that the problem of Iraq is the lack of control over the debt, which made many international organizations refuse to lend directly, but through the support service projects supervised by, for fear of financial and administrative corruption. 

said Bassem Jamil Antoine Vice - President of the Assembly For Iraqi economists in a press interview that " the problem of IraqThe money that entered the country of oil estimated at one trillion dollars, since 2003 until now, and is able to build the country, and not to borrow from any external or internal. " 

He added that the problem that accompanied the Iraqi debt is financial and administrative corruption, and part of the This debt went to support the financial budget in the closure of salaries of employees and public expenditures and others, while there are projects funded funded from public debt 

He explained that some international organizations and countries began to grant funds to the Iraqi government, in the form of installments after the completion of the stage of each project, The money was also getting in the past.

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  • yota691 changed the title to Deputy: The volume of Iraqi debt is more than 133 billion dollars
 
 
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MP Mahmoud al-Kaabi, on Wednesday, that the volume of Iraqi debt is more than 133 billion dollars, noting that Iraq pays 10.8 trillion dinars.

Al-Kaabi said in an interview with Alsumaria News that "the report of the Parliamentary Finance Committee showed that the volume of debt owed by Iraq amounted to 133 billion and 700 million dollars," noting that "the budget showed that Iraq pays 10.8 trillion dinars due to debt and interest of 4.5 trillion dinars because of these debts "He said.
 

"We have asked the Department of Public Debt at the Ministry of Finance mechanism to pay these debts and their schedule and interest and the size of internal and external debt, but the Department refrained from that," adding that "will be approached by the Ministry of Finance on this and we await response to all our concerns." 

Al-Kaabi said that "there are suspicions that require us to investigate the matter," stressing that "we will inform the people on all the results, whether negative or positive." 

The debt of 
Iraq amounted to nearly 120 billion dollars in 2003, before the debt settlement with some countries by paying the principal only without interest, in cooperation with the United Nations and the International Monetary Fund .
In 2014, 
Iraq
 was hit by a financial crisis with a third of its territory out of government control, plus high operating costs, making it resort to external and domestic borrowing to fill its budget deficit and cover war costs.
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Change the value of the Iraqi currency ... benefits and costs


2019-07-04

Change the value of the Iraqi currency ... benefits and costs

 

Change the value of the Iraqi currency ... benefits and costs


The importance of the Iraqi currency and its impact on the Iraqi economy in light of the current changes The Department of Economic Studies in Beit al-Hikma held a scientific symposium entitled "Change in the value of the Iraqi currency, benefits and costs" under the chairmanship of Prof. Dr. Falah Hassan Thoini, / 7/2019 on the seminar hall in Beit al-Hikma. 
The seminar was attended by Dr. Mazhar Mohammed Saleh, financial adviser to the Prime Minister, as well as Professor Dr. Mahmoud Mohammed Dagher, Director of the Department of Financial Operations and Debt Management of the Central Bank of Iraq. 
The participants discussed the problem of changing the value of the Iraqi currency and the reduction of the Iraqi dinar and its impact on the Iraqi economy, some describe this reduction as support for the global economy and some see the deterioration of the purchasing power of the Iraqi individual.
Dr. Mazhar Mohammed Saleh talked about the policy of the Central Bank since its establishment so far in a concise and clear as the goal of the bank is to manage the monetary expectations and how Iraq's oil revenues since 2003 to 2014 is improving continuously so there was no budget deficit. He pointed to the role of Iraq and the agreements signed with the International Monetary Fund and its impact on the Iraqi economy. 
He concluded by discussing the need for new policies that are consistent with the central bank's policy of reaching solutions. 
Dr. Mahmoud Mohammed Dagher discussed the current exchange rate regime for two years in Iraq and mentioned facts about the Iraqi economy for 2019. 
The promise of the devaluation of the Iraqi currency affects all the real and monetary balances of the Iraqi economy because one of the reasons for inflation accompanying the reduction ignites expectations and pressures towards the continuation of subsequent reductions decisions.
In conclusion, there were comments from the audience and views and proposals on the decision to reduce the Iraqi dinar. 

The seminar was attended by Dr. Ihsan Al-Amin, Chairman of the Board of Trustees of Bayt Al-Hikma and a number of prominent personalities in the banking and financial field and a number of academics.  

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Source http://www.baytalhikma.iq/News_Details.php?ID=1025

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"In conclusion, there were comments from the audience and views and proposals on the decision to reduce the Iraqi dinar."

 

Is it just me, or does this article sound like this is something that they are just starting to talk about and getting opinions on, as to whether this is a good idea or not?

 

They needed a symposium about this, at this late date?

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8 minutes ago, Floridian said:

"In conclusion, there were comments from the audience and views and proposals on the decision to reduce the Iraqi dinar."

 

Is it just me, or does this article sound like this is something that they are just starting to talk about and getting opinions on, as to whether this is a good idea or not?

 

They needed a symposium about this, at this late date?

lol, thats what it sounded like to me too.

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10 minutes ago, denster said:

Don't lose confidence in the Dinar it will come up in valve, they are already to low. The oil country's around them have high valve to there money , 

 

 

If you look up currency values you will see this 1 to USD value 

Nigeria 1 to .0028 USD

Lydia  1 to .71 USD

Algerians. 1 to .0084 USD

Iran 1 to . 000024 USD

Kuwait 3.29 USD

UAE .27 USD

IQD .00084 USD

Angola .0031 USD

Russia .015 USD 

So all these oil producers are big oil producers.  If you look at the value of their currency its valued all over the board. 

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  • yota691 changed the title to The Finance Committee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate
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