To cover its obligations for the coming months ... The Financial Times: Iraq plans to borrow $ 18 billion

[Mary B]

Wednesday, July 22, 2020 10:13 AM

 

To cover its obligations for the coming months ... The Financial Times: Iraq plans to borrow $ 18 billion

 

 

 

A British newspaper said that the Iraqi government plans to borrow $ 18 billion.
And the Financial Times published a report for its Middle East correspondent, Chloe Corniche, entitled "Iraq Warns that Economic Problems May Raise Insecurity."
The report's title is a phrase quoted from a speech by Finance Minister Ali Allawi, who said that "the issues that were buried because of the high and growing oil revenues are taking shape now", referring to the inflated spending and a monthly bill of $ 5 billion, and this includes payments for an estimated 300,000 From "ghosts" or imaginary employees, according to the author.
The writer says, "The financial situation in Iraq, the second largest oil producer in OPEC, is taking a devastating blow as crude oil prices drop by more than half compared to last year."
The author is based on the Oxford Institute for Energy Studies when referring to lower returnsIraq exported oil, from $ 6.1 billion in January to its lowest level of $ 1.4 billion in April.
The author returns to Allawi, who says that Baghdad is no longer able to rely on current oil prices.

And Chloe quoted Allawi as saying that Iraq "has been holding regular and very intense discussions with the International Monetary Fund for some time now." Adding that Baghdad "may apply for some budget support." 
“There is now a growing recognition that we are moving to an environment with relatively low oil prices. We really have to find an alternative to restructure our public finances, to take account of this new normal. ”

The country's poverty rate is expected to rise to 31.7 percent this year, from 20 percent in 2018, as the Corona epidemic is pushing 4.5 million Iraqis to fall below the poverty line, according to a new joint assessment by the government, the United Nations, the World Bank and Oxford University.
"The drop in oil prices leaves the government with little room to maneuver," the author says.
The author relies on the words of analysts who said that the government can take advantage of $ 68 billion in foreign reserves to cover dollar bills, such as imports and debt service, and is expected to borrow $ 18 billion from home and abroad to cover government wages for the next few months.

 

https://www.thebaghdadpost.com/ar/Story/198932/لتغطية-التزاماته-للأشهر-المقبلة-فايننشال-تايمز-العراق-يخطط-لإقتراض-18-مليار-دولار

[Mary B]

Parliamentary Finance: There is no excuse for the government to delay salaries

13:47 - 07/22/2020

 

  

Information / Baghdad ..
The Parliamentary Finance Committee asked, on Wednesday, the Ministry of Finance to keep its promise to pay salaries during the current month and the next three by providing funds through conducting some financial reforms, increasing oil prices and internal borrowing.
Member of the Committee, Representative Jamal Cougar, said in a statement to "Information", that "it is not necessary for the Ministry of Finance to pay salaries to those who are entitled to them at specified times and schedules, and it must abide by what it promised."
He added that "the funds are currently available with the Ministry of Finance and they have an obligation to pay salaries according to the monthly entitlement of each institution." He explained that "recent financial reforms have provided the Ministry with good funds, as well as an increase in oil prices and internal borrowing."
Cougar pointed out that "the government's actions regarding external borrowing are still slow and can accelerate borrowing from neighboring countries that have declared their readiness to support Iraq."The benefits should be soft. ” Ended in / 25 pm

 

https://www.almaalomah.com/2020/07/22/486228/

[BETTYBOOP]

They keep going like this, they are gonna need a high RV and a lifetime to repay the debts. 

Edited July 22, 2020 by BETTYBOOP

[Mary B]

Reducing the interest rate for loans and advances and the need for attention, Minister of Finance

17:53 - 07/22/2020

 

  

Sofa / Zuhair Al-Fatlawi ..

A large and large interest rate that is approved by the Ministry of Finance, especially by the Rafidain and Rashid banks, and they are the most banks that take bribes and waste public money, and they work outside the administrative and financial controls and orders very tired and do not match what other banks do, especially in developed countries. Backwardness, routine and corruption thrive in these banks, and there is idleness and interruption. The time starts at nine o'clock and ends at eleven hours. Tens of citizens complain, including the branches of Paratha and Palestine Street near the calculator. Very crowded devices, the large number of idle devices, and the absence of follow-up and accountability are just a name of the Ministry of Finance .. Rather, it is on the amount it receives, which is 4.5 million .. Of course, this case applies to the real estate bank’s loans. The interest rate on loans or loans that the bank collects is 9%, which is an excessive amount of it to the point of confusion… This is an announcement from the Rafidain Bank on its official website saying “Grant Maximum loan amount of (50) fifty million dinars for the purpose of construction for every citizen who owns a residential plot of land ... etc., the term of the loan is (10) years, i.e. (120) months and with a grace period of (3) months, an interest of (9%) is collected annually. “… In Egypt, Saudi Arabia, and many other countries, they acknowledge that the interest on the housing loan is 2%. The mission of the central bank in all countries of the world is to draw banking policy and determine the interest rate. If the Rafidain, Rashid and Real Estate government banks behave with these chaos, what are the national banks doing? This is a message to the Governor of the Central Bank of Iraq and whoever means this important matter to the need to pay attention to borrowers and reduce the interest rate without theft, embezzlement, fraud and fraud.

 

https://www.almaalomah.com/2020/07/22/486287/

[Spartakus]

They're borrowing their way to oblivion.

[WheresmyRV?]

Reading articles like this tells me there isn't no RV in sight for a long time.

[Spartakus]

IMO, so long as Alak is still at the head of the CBI we won't see any revaluation of the dinar; I hope that I'm mistaken.