Al-Kazemi’s advisor reveals the size of Iraq’s debts to the International Monetary Fund

[yota691]

Advisor to the Prime Minister: 50 trillion dinars are outside the control of the banking system

 

Banks Economy News _ Baghdad On Friday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed two restrictions that curb the banking credit system, and while he confirmed the existence of 50 trillion dinars outside the control of the banking system, he indicated that there are reasons that impede private investment and others that have caused the emergence of a "usurious" credit system. "The banking credit system in Iraq is subject to inherited and complex structures, the first constraint of which is the high risk of debt recovery and defaults in the collection of loans granted, which amount to 18%, while the global standard ratio of defaults is not," Saleh said in an interview with the Iraqi News Agency and its follow-up, "Al-Eqtisad News." More than 3% is what drives banks to continuously make large hedges around capital to face credit losses due to the quality of the guarantees themselves, which are often non-liquid real estate upon default, which increases the degree of reluctance to grant cash credits or loans or helps raise risks Credit is strictly due to the high bank interest, "noting that" the loans granted by banks to the public or to the people do not exceed 5% of the gross domestic product, which is the lowest in the world. " He added, "The second limitation is the decrease in the ability of banks to mobilize public liquidity leaked outside the banking system, which is in the possession of the public and in the form of cash hoardings. They are deducted from the income cycle and are outside the control of the official financial system and are subject to the behavior of the public in demanding cash liquidity because of its customs and traditions in revering liquidity." The available cash is immediately under the hand, "indicating that" these funds are considered in all cases important financial surpluses and a large cash wealth (immobile and only partially conducive to private investment activity). Low across the banking system itself instead of being hoarded in homes, and its averages are estimated as hoarded surplus liquidity outside the banking system today, equivalent to about 25% of the gross domestic product of Iraq. " He pointed out that "based on these patterns of monetary habits and the initial dealings with excess liquidity outside the legal banking credit system, a (interest-based) credit apparatus has been formed in the parallel or informal financial market, as the parallel market continues to grant its usurious cash loans to the public on loan terms. Very high cost, as the annual interest in it is between 50-80%, (which is called obscene interest). The usurious market is a parallel (unregulated) financial market that is highly exploited with high risks, but at the same time it has high flexibility in dealing with stagnant cash liquidity. By moving the usurious interest tool. " He continued, "Its funds are estimated, as we have mentioned above (as leaked funds available outside the banking system) at perhaps 50 trillion dinars, which are important and vital funds that are currently circulating outside the control of the legal or official banking system," explaining that "Both scenarios, whether in the formal, organized financial or banking market, or the parallel (informal and unorganized) usurious market have made it difficult for the public to obtain credit or loans, whether at reasonable costs or conditions, especially loans that are commensurate with the average income of the general social class that needs money Pushing monetary policy by really going to (direct quantitative) intervention in the official credit market by adopting credit facilitation policies and supporting the market with very easy and low-cost loans, most of which were provided (within the initiative of the Central Bank of Iraq), whether in the form of housing loans through the government real estate credit apparatus (Real Estate Bank and Housing Fund) ) Or in the form of supporting economic activity with small, medium and large loans in various economic fields. He pointed out that, "due to the institutional complications in maintaining communication between the public and banks in easy handling, it has become imperative to introduce auxiliary financial instruments carrying bank interest in the form of (bonds) that are sold optionally to the interested public of cash surplus holders, and these tools are insured from any failure in Repayment by formal guarantee institutions and granting their holders privileges even when borrowing and accepting those instruments as optimal bank guarantees when credit is needed and capable of immediate liquidation in the secondary financial market such as the Iraq Stock Exchange. He concluded by saying, "The liquidity obtained from these bonds will help, as they are excellent debt tools, in activating the granting of credit, especially to small borrowers, on easy terms through banks or digital financial companies and others. They are authorized to deal with bonds by sale, purchase or mediation and their actions are in accordance with the law in order to deal with credits." Small or microfinance. "

Number of observations 335   Date of addendum 05/21/2021

[yota691]

Advisor Al-Kazemi reveals that there are 50 trillion dinars outside the control of the banking system

Economie| 09:51 - 20/05/2021

 

 

 

 

 

 

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Thursday, two restrictions that curb the banking credit system, and while he confirmed the existence of 50 trillion dinars outside the control of the banking system.

Salih said that "the banking credit system in Iraq is subject to inherited and complex structures, the first limitation of which is the high risk of debt recovery and default in the collection of loans granted, which amount to 18%, while the global standard rate of defaults does not exceed 3%, which drives banks to make large hedges." And constantly transferring capital to face credit losses due to the same quality of guarantees, which are often real estate that cannot be liquefied at default, which increases the degree of reluctance to grant cash credits or loans, or helps to raise credit risks by strictly using high bank interest, "pointing out that" " "The loans granted by banks to the public or to the public are still no more than 5% of the gross domestic product, which is the lowest in the world."
He added, "The second limitation is the decrease in the ability of banks to mobilize public liquidity leaked outside the banking system, which is in the possession of the public and in the form of cash hoardings. They are deducted from the income cycle and are outside the control of the official financial system and are subject to the behavior of the public in demanding cash liquidity because of its customs and traditions in revering liquidity." The available cash is immediately under the hand, "indicating that" these funds are considered in all cases important financial surpluses and a large cash wealth (immobile and only partially conducive to private investment activity). Low across the banking system itself instead of being hoarded in homes, and its averages are estimated as hoarded surplus liquidity outside the banking system today, equivalent to about 25% of the gross domestic product of Iraq. "
He pointed out that "based on these patterns of monetary habits and the initial dealings with excess liquidity outside the legal banking credit system, a (interest-based) credit apparatus has been formed in the parallel or informal financial market, as the parallel market continues to grant its usurious cash loans to the public on loan terms. Very high cost, as the annual interest in it is between 50-80%, (which is called obscene interest). The usurious market is a parallel (unregulated) financial market that is highly exploited with high risks, but at the same time it has high flexibility in dealing with stagnant cash liquidity. By moving the usurious interest tool. "
He continued, "Its funds are estimated, as we have mentioned above (as leaked funds available outside the banking system) at perhaps 50 trillion dinars, which are important and vital funds that are currently circulating outside the control of the legal or official banking system," explaining that "Both scenarios, whether in the formal, organized financial or banking market, or the parallel (informal and unorganized) usurious market have made it difficult for the public to obtain credit or loans, whether at reasonable costs or conditions, especially loans that are commensurate with the average income of the general social class that needs money Pushing monetary policy by really going to (direct quantitative) intervention in the official credit market by adopting credit facilitation policies and supporting the market with very easy and low-cost loans, most of which were provided (within the initiative of the Central Bank of Iraq), whether in the form of housing loans through the government real estate credit apparatus (Real Estate Bank and Housing Fund) ) Or in the form of supporting economic activity with small, medium and large loans in various economic fields.
He pointed out that, "due to the institutional complications in maintaining communication between the public and banks in easy handling, it has become imperative to introduce auxiliary financial instruments carrying bank interest in the form of (bonds) that are sold optionally to the interested public of cash surplus holders, and these tools are insured from any failure in Repayment by formal guarantee institutions and granting their holders privileges even when borrowing and accepting those instruments as optimal bank guarantees when credit is needed and capable of immediate liquidation in the secondary financial market such as the Iraq Stock Exchange.
He concluded by saying, "The liquidity obtained from these bonds will help, as they are excellent debt tools, in activating the granting of credit, especially to small borrowers, on easy terms through banks or digital financial companies and others. They are authorized to deal with bonds by sale, purchase or mediation and their actions are in accordance with the law in order to deal with credits." Small or microfinance. "

[yota691]

Government Adviser: External debt is repayable, amounting to 23 billion dollars

by Editor Iraq news , economy 23 Hours ago

The appearance of Muhammad Salih revealed the size of the internal and external debts owed by Iraq and the mechanisms for repaying those debts.

Saleh said in press statements that the internal debts amount to fifty billion dollars and are collected from the official government financial system and not to creditors from the private sector, that is, they are from the state to the state, while he indicated that the remaining external debts that are due for payment amount to twenty-three billion dollars and are programmed for payment within a paragraph Debt services in the annual general budget in order to be extinguished, indicating that part of the external debt is a remnant of the debt rescheduling of the Paris Club Agreement, and the other was created to finance armament and equipping the armed forces due to the conditions of the war on ISIS after the year two thousand and fourteen.

[yota691]

 

An American magazine reveals the size of Iraq's foreign debt for the year 2021

 

 2021-09-27 04:09

 

Shafaq News/ Governments spend money on health care, education, infrastructure, defense activities and a large number of other services and goods, but some governments resort to borrowing money, because things do not always go as planned.

The American magazine Global Finance said in its schedule for the year 2021, which was reviewed by Shafak News Agency; Iraq's foreign debt during 2021 amounted to $69.684 billion, down from "in 2020, which amounted to $81.153 billion in 2020," noting that "Iraq's debt for 2019 amounted to $47.705 billion and in 2018 it amounted to $50.018 billion."

She added that "the most indebted Arab countries during the year 2021 were for Sudan, where its external debt amounted to 211.656 billion dollars, preceded by Eritrea with a debt of 175.575 billion dollars, followed by Bahrain, with its external debts amounting to 129.417 billion dollars, followed by Egypt with a debt of 92.858 billion dollars, and then Jordan preceded it with a debt of $91.172 billion, while no debt was recorded in Lebanon for the year 2021, as there were no statistics during this year, after its external debt for the year 2020 amounted to $154.364 billion.

Globally, Japan came in with the most indebted countries in the world in 2021, with a value of 256.494 billion dollars, followed by Sudan with 211.656 billion dollars, followed by Greece with 210.093 billion dollars.

The magazine noted that sometimes tax revenue is less than expected, and by borrowing the government can cover temporary deficits without cutting spending, sometimes, the shortfall is not temporary and the government is running a structural deficit.

[Wiljor]

Thanks ever so much Yota for your ongoing support here in DV 

THE DEBT OF IRAQ….
 

Kinda like a drop in the bucket compared to the US debt. 
28 trillion and counting 🥵

Which by the way, they are once again debating on raising that debt ceiling. 
 

I guess we just have to get used to it, if we aren’t already, debt is what runs the world 🌎 
 

 

[horsesoldier]

Here’s our debt....fabulous isn’t it.
 

https://www.usdebtclock.org

[screwball]

On 5/22/2021 at 12:34 PM, yota691 said:

"The second limitation is the decrease in the ability of banks to mobilize public liquidity leaked outside the banking system, which is in the possession of the public and in the form of cash hoardings.

yep and only way to get get cash into the system is with rate change. 

[screwball]

the dinar needs purchasing power in country, using USD needs to stop and larger notes need to be called in and exchnaged for small ones. only RV will do this.

[yota691]

2022 without financial problems

The financial advisor confirms the decline in Iraq's external public debt

2021.11.13 - 10:42

 

  

Baghdad - people   

Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, announced on Saturday that the country's external public debt has decreased to $20 billion.   

  

  

 

  

Saleh said, to the official agency and followed by "Nass" (November 13, 2021), that "the external public debt of Iraq is in a waiver and is within the limits of 20 billion dollars, and the public budget bears the debt-amortization services according to the set timings," noting that "the internal debt is not It is still the largest at the present time, and it exceeds the external debt three times, but it remains confined to the framework of the government financial system exclusively, and has no connection with the public.”  

  

He added that "Iraq is in recovery and will inevitably live in the next 2022 without financial hardships or financing restrictions, caused by a lack of revenues, due to the recovery of the energy market and the boom in demand for oil, as well as the increase in the proceeds of Iraq's oil production by 400 thousand barrels per day," noting that "" This addition to the current total oil production and alone will generate an annual added revenue estimated at about 17 trillion Iraqi dinars if the average price of a barrel of oil reaches $75.  

  

He pointed out that "the issue depends on the total expenditure ceilings in the budget, and if it is assumed that the expenditure ceiling in the 2022 budget is the same in 2021, and that the average price of a barrel of oil achieved throughout the year is not less than $75, then the oil revenues will alone cover the total expenditures." in the budget and achieve some surplus from the availability of other non-oil revenues.”  

  

He added, "This means that, for the first time, there will be a budget that achieves a financial surplus without the need to borrow, and if borrowing is achieved, it does not exceed 3% of the gross domestic product, which is stipulated in the financial management law in force due to ongoing construction projects linked to its financing with international loans," he added. By saying: "In my estimation, it does not exceed $3 billion per year, in addition to the construction loan whose bonds are offered for circulation to the public at a trillion dinars."  

[yota691]

Al-Kazemi’s advisor reveals Iraq’s position on its debts

•  Time: 11/13/2021 09:22:32
•  
•  Reading: 2,106 times

  

{Economic: Al Furat News} Mazhar Muhammad Salih, Advisor to the Prime Minister for Financial and Economic Affairs, revealed Iraq's position on its debts.

Saleh said in a statement to {Euphrates News}, that "the debts owed by Iraq were signed within the Paris Agreement in 2004, and it is among the debts of the former regime, as it included more than 129 billion dollars."

Saleh added, "A large number of these debts have been extinguished, and there are countries that have extinguished them by 100%. For example, America has extinguished its debts in full, Russia has extinguished 94%, and Algeria has completely extinguished debts, and Cyprus as well."

He pointed out that "there are countries that did not extinguish the debts, but did not demand them."

Raghad Daham

[yota691]

Al-Kazemi’s advisor for financial affairs: The decrease in the external public debt, and the next year will be free of hardships and financing restrictions

Saturday 13 November 2021 11:11 | economic Number of readings: 385

Baghdad / NINA / - Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, announced today, Saturday, that the country's external public debt has decreased to $20 billion, while stressing that the year 2022 will be free of financial hardships and financing restrictions.

Saleh said, to the official agency: "Iraq's external public debt is in decline, and it is within the limits of 20 billion dollars, and the public budget bears the debt-amortization services and according to the timings set," noting that "the internal debt is still the largest at the present time, and the external debt exceeds three times, but it remains confined to the framework of the government financial system exclusively, and has no connection with the public.”

He added that "Iraq is in recovery and will inevitably live in the next 2022 without financial hardships or financing restrictions, caused by a lack of revenues, due to the recovery of the energy market and the boom in demand for oil, as well as the increase in the proceeds of Iraq's oil production by 400 thousand barrels per day," noting that "" This addition to the current total oil production and alone will generate an annual added revenue estimated at about 17 trillion Iraqi dinars if the average price of a barrel of oil reaches $75.

He pointed out that "the issue depends on the total expenditure ceilings in the budget, and if it is assumed that the expenditure ceiling in the 2022 budget is the same in 2021, and that the average price of a barrel of oil achieved throughout the year is not less than $75, then the oil revenues will alone cover the total expenditures." in the budget and achieve some surplus from the availability of other non-oil revenues.”

He added, "This means that, for the first time, there will be a budget that achieves a financial surplus without the need to borrow, and if borrowing is achieved, it does not exceed 3% of the gross domestic product, which is stipulated in the financial management law in force due to ongoing construction projects linked to financing with international loans," noting. It does not exceed $3 billion per year, in addition to the construction loan whose bonds are offered for circulation to the public at a trillion dinars."/ Ended 9

[Laid Back]

“Iraq is in recovery and will inevitably live in the next 2022 without financial hardships or financing restrictions, caused by a lack of revenues.”

 

“This means that, for the first time, there will be a budget that achieves a financial surplus without the need to borrow, and if borrowing is achieved, it does not exceed 3% of the gross domestic product”

 

Looks like 2022 will be a good year for Iraq, we heard it from WB, IMF and PM financial advisor.

 

Go Iraq 

Go reforms

Go development 

Go economic growth 

Go purchasing power 

 

[Half Crazy Runner]

47 minutes ago, Laid Back said:

Looks like 2022 will be a good year for Iraq,

And maybe even for us … 😉 

[horsesoldier]

I’m very much in impatient mode today.... sick & tired of being sick & tired of the incessant chin wagging about what’s gonna happen. Year 19 of this investment is closing in. 

[nannab]

Yes Dear  

 

30 minutes ago, horsesoldier said:

Year 19 of this investment is closing in. 

 

[new york kevin]

1 hour ago, nannab said:

Yes Dear  

 

 

15 years for me. I got into this in 2006.

[Floridian]

11 years for me and I can't take much more.

I'm so sick of Iraq.  Too many disappointments.

I get real discouraged.  

I had big plans for what I was going to do when the money came in.

Now, I just hope I live long enough to see it.

[new york kevin]

22 minutes ago, Floridian said:

11 years for me and I can't take much more.

I'm so sick of Iraq.  Too many disappointments.

I get real discouraged.  

I had big plans for what I was going to do when the money came in.

Now, I just hope I live long enough to see it.

Truer words were never spoken .

[Shedagal]

36 minutes ago, Floridian said:

11 years for me and I can't take much more.

I'm so sick of Iraq.  Too many disappointments.

I get real discouraged.  

I had big plans for what I was going to do when the money came in.

Now, I just hope I live long enough to see it.

I think we all feel your pain.  We all have big dreams.  Unfortunately, Iraq has zero concerns of fulfilling those dreams.  They will do this in their time and best interest.  Things are looking good now, but they have looked good before.

 

Many have sold some or all their dinar and moved the funds into other investments.  They are seeing a better return on investment in the present.  I am unwilling to do that with these funds. The potential return on this for the small amount invested is worth the risk to me.

 

In Hebrews, it talks about those who died in faith never having received the promise.  I also pray that we live long enough to see this.  If so, our youth will be renewed like the eagle's, and we will be able to do everything we have dreamed about.

 

In the meantime, other investments are fun, too.

[nannab]

48 minutes ago, Floridian said:

Now, I just hope I live long enough to see it.

 

29 minutes ago, new york kevin said:

Truer words were never spoken .

19 years for me and I know the feeling 

[WheresmyRV?]

53 minutes ago, Floridian said:

11 years for me and I can't take much more.

I'm so sick of Iraq.  Too many disappointments.

I get real discouraged.  

I had big plans for what I was going to do when the money came in.

Now, I just hope I live long enough to see it.

Took the words right out of my mouth, been in this almost 11 years as well.  This is getting beyond old. I'm hoping this happens before I get too old too.

[JonnyV]

1 hour ago, WheresmyRV? said:

Took the words right out of my mouth, been in this almost 11 years as well.  This is getting beyond old. I'm hoping this happens before I get too old too.

 

Ok there Meat Loaf.  I hope is wasn’t while you were kissing him.  LOL

 

17 years for me.  I think.  I lost count.  

[JonnyV]

5 hours ago, horsesoldier said:

I’m very much in impatient mode today.... sick & tired of being sick & tired of the incessant chin wagging about what’s gonna happen. Year 19 of this investment is closing in. 

 

Hmm.  Horses live that long.  When it hits you can buy all the top quality hay you want along with slutty Mares.  

[horsesoldier]

5 hours ago, nannab said:

Yes Dear  

 

 

[Floridian]

1 hour ago, Shedagal said:

I think we all feel your pain.  We all have big dreams.  Unfortunately, Iraq has zero concerns of fulfilling those dreams.  They will do this in their time and best interest.  Things are looking good now, but they have looked good before.

 

Many have sold some or all their dinar and moved the funds into other investments.  They are seeing a better return on investment in the present.  I am unwilling to do that with these funds. The potential return on this for the small amount invested is worth the risk to me.

 

In Hebrews, it talks about those who died in faith never having received the promise.  I also pray that we live long enough to see this.  If so, our youth will be renewed like the eagle's, and we will be able to do everything we have dreamed about.

 

In the meantime, other investments are fun, too.

 

Thanks, Shedagal.  Yes I do have crypto investments also.  

I would have sold my dinar for crypto, but since they they made it worth so much less, I don't want to take the loss.  Still hoping I live to see the gains.