$ 160 billion total of Iraq's debt
Sunday 15 November 2020 45
Baghdad: Hazem Muhammad Habib
The Parliamentary Finance Committee revealed that the country's internal and external debts amount to more than $ 160 billion, indicating that the total debt rose after the fiscal deficit law was approved during the past months.
A member of the Finance Committee, Abd al-Hadi Mohan al-Saadawi, said in an exclusive interview with “Al-Sabah”: “The external debts owed by Iraq and established within (Paris Club, Kuwait's debt and the Iraq-Iran war) amounted to more than 136 billion dollars," indicating that "the total amount of debts increased after The increase in external borrowing after 2014 and until now, bringing the total debt to more than $ 160 billion, most of which is external debt, and includes a very high interest rate.
And Iraq paid last year, 2019, loans payable with interest amounting to about 14 trillion dinars, and Al-Saadawi warned that «the state’s continued external and internal borrowing will lead to the country’s declaration of complete bankruptcy.
A member of the Finance Committee pointed out that the parliament voted on the first borrowing law that the government presented to parliament on 5 billion dollars in external borrowing and 15 trillion dinars as internal borrowing, to pay the salaries of employees until the end of the year. We need data from the Ministry of Finance that clarifies the mechanisms and outlets of spending », noting that« the borrowing and local revenues of the state are divided into two parts, which is that 80% of these funds are for the operational budget and 20% for the investment budget, where the 20% investment is divided into two parts; 50% for ministries' projects, and the same for regional development projects.
Al-Saadawi explained that «the 2021 budget does not include a reduction in the salaries of state employees, and that the (white paper) presented by the government and voted on by Parliament; It does not include the procedures for reducing the salaries of employees, but only includes allocations for employees of special grades, ”indicating that“ (the white paper) has not been translated into a budget to be sent to Parliament to find out the doors of disbursement therein. ” To be discussed and presented to the House of Representatives for a vote ».