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

[yota691]

After the decrease in the external debt .. What is the secret of the leap in the Iraqi economy?

l 17 hours ago

Baghdad - Sky News Arabia

•  

 

The Iraqi economy is facing a number of difficulties

The Iraqi government's announcement that the public debt has fallen to $20 billion has revived the hope that the country will improve and recover from the effects of the Corona pandemic, amid calls to enhance the investment environment, and make the most of the progress made.

And the external public debt in Iraq decreased to 20 billion dollars, according to the adviser to the Prime Minister for Iraqi Financial Affairs.

The Iraqi News Agency quoted Counselor Mazhar Muhammad Salih as saying that the country's external public debt had fallen to $20 billion.

Saleh confirmed to the Iraqi News Agency, "Conscious", that next year, 2022, will be free of financial hardships and funding restrictions.

Saleh said, "Iraq's external public debt is in decline and is within the range of 20 billion dollars, and the public budget bears the debt extinguishing services according to the timing of a decree.

Iraqi experts believed that the decline of Iraq's external debt to $20 billion is calculated by the economic and financial institution, stressing the need to issue a clear economic bulletin, through which the citizen can know the economic situation, especially since the state budget for more than two years was not clear.

installments payable

For his part, the expert in economic affairs, Abdul Rahman Al-Mashhadani, believes that “these funds are installments of the debt due to be paid, some of which are postponed from 2020 due to the pandemic, and the collapse of oil prices, so the government paid installments due in 2020 of up to 3 billion dollars, and in In the past nine months, it has paid installments of about 2.7 billion.

Al-Mashhadani added, in a statement to "Sky News Arabia", that "reducing the debt will reduce the pressing negative impact on the gross domestic product, and on exports as well, because the external debt must be paid in hard currency," noting that "the decrease in debt contributes to raising the classification of the Iraqi economy in international indicators.

In 2004, the Paris Club wrote off about 80 percent of the debts owed by Iraq during the period of the previous regime, which amounted to 120 billion dollars.

The budget for the current year 2021 included, within the expenditures paragraph, the allocation of 9 trillion dinars (about 6.2 billion dollars), to pay the internal and external debt.

In December 2020, the government announced a change in the exchange rate of the dinar against the dollar, from 1182 dinars per dollar, to 1450 dinars, before sending the current year’s budget to Parliament, which included approving the new exchange rate, which witnessed widespread opposition at the time from most Political forces.

right track

In turn, economic analyst Sarmad Al-Shammari believes that "the decline in public debt in Iraq is a positive indication that the path of the economy in the country is moving towards stability and recovery from the effects and repercussions of the Corona virus, especially since the current government has adopted a new policy in dealing with economic affairs." He pointed out that "some measures were harsh, such as decreasing the exchange rate of the dinar against the dollar, but they were necessary, and they can be recovered from in the long run."

Al-Shammari added in a statement to "Sky News Arabia" that "Iraq, in light of the current situation, low debt, and high transparency index, within the approved classifications, can resort to investment loans, to strengthen its economy, and pump more capital, to attract labor, which is what It will quickly reflect on the country's development."

 

Iraq witnessed a financial crisis in June 2020, when the government’s first borrowing was made with the aim of financing the salaries of employees and projects for a period of 3 months, and the crisis was renewed in September of that year, when the government was unable to pay salaries and was delayed 45 days, which prompted the House of Representatives to approve the government’s second loan .

But quick measures taken by the Al-Kazemi government, such as controlling border crossings, activating the agricultural sector, enhancing the investment environment, and reassuring foreign companies, through concrete measures, as well as reducing the exchange rate of the dinar, contributed to the return of the Iraqi economy to its normal path.

[yota691]

Al-Kazemi's advisor reveals the size of Iraq's internal and external debts

AM:10:10:24/12/2021

1336 views

 

 

The economic advisor to the Prime Minister, Mazhar Muhammad Salih, determined, on Friday, the size of the remaining internal and external debts on Iraq and the mechanism for repaying them.

 

Saleh said in a statement to the official agency, followed by NRT Arabiya, (December 24, 2021), that "as for the external debt, there is an outstanding amount that has not been settled under the Paris Club Agreement to settle Iraq's external debt, and it goes back to the so-called debts before 1990, estimated at 41 billion A dollar, which requires, if the debt is correct, that it be discounted by 80% or more according to the terms of the Paris Club Agreement, with no more than 8-9 billion dollars.

 

He added that "the aforementioned amount appears in the accounting books of four Gulf countries, at a rate of approximately 66%, distributed between Saudi Arabia, Kuwait, Qatar and the Emirates, and it dates back to the era of the Iran-Iraq war and is expected to be written off by 100% because it is a debt associated with wars and not for development purposes."

 

He pointed out that "the remaining 34% belongs to eight different countries, and in general it can be said that the sovereign debt on Iraq is divided between the group of Paris Club countries and countries outside the Paris Club, and commercial debts," explaining that "Iraq's foreign debts, especially debts before the year 1990 was settled under the Paris Club Agreement 2004, where it was agreed to write off 80% and more of those debts whose initial estimates at that time approached $ 129 billion, and most of them were written off and the rest of the debt was scheduled for 20 years.

 

And he indicated that "despite the fact that Iraq made some external borrowings due to financial distress after 2014 as a result of the war on ISIS terrorism and the drop in oil prices and its direct impact on the country's public budgets, the total external public debt subject to repayment obligations does not exceed 20 billion dollars today."

 

He added, "As for the internal public debt, it is the largest today and amounts to about 50 billion dollars, but it is a debt between government financial institutions exclusively, and it is settled within the internal economic policies, and it is a low-risk debt," noting that "the increase in oil revenues will provide high financial leverage to settle the debts." The remnants of debt and easy choices.

 

Salih explained: "In light of the foregoing, the public debt components can be re-analyzed as follows: As the internal public debt touched nearly $50 billion, 67% of it goes back to the Central Bank of Iraq with an average annual interest of 3%, while the debt The remainder of it, which must be paid, is about $20 billion.”

 

He stressed that "recalculating the actual external public debt is $29 billion, and the actual total internal and external debt is $79 billion, and assuming that the gross domestic product for the year 2021 is $178 billion, the ratio of the actual debt to the mentioned output is about 45%, and it is still It is within the safe range of EU standards for stability and growth."

[bkeiller]

 

Not sure if this article relating to Iraq debt has been posted yet:

Al-Qurain Martyr's Museum in Kuwait City on August 2, 2021. (AFP)

Iraq pays final Kuwait war reparations

In total, Iraq has paid $52.4 billion in reparations.

Iraq has paid its last war reparations to Kuwait more than 30 years since the invasion of the Gulf country by former autocrat Saddam Hussein, officials said Thursday.

On August 2, 1990, Hussein ordered his army to invade Kuwait and seize what he described as “Iraq’s 19th province”, before being pushed back seven months later by a US-led coalition.

For the latest headlines, follow our Google News channel online or via the app.

“Iraq has closed the file of the Kuwait war reparations, having paid the last of its dues,” Mozher Saleh, the prime minister’s economic advisor, was quoted as saying by the official Iraqi News Agency.

In total, Iraq has paid $52.4 billion in reparations, he said.

“This is not a small amount,” he added. “The sum would have been enough to construct an electricity network that would have served Iraq for many years.”

Despite being rich in hydrocarbons, Iraq’s electricity infrastructure has suffered from years of negligence and successive wars, facing regular power cuts.

Saleh said he hoped that the slice of budget previously allocated for reparations would now be directed to development projects.

The central bank announced Tuesday the payment of the final portion of the reparations, valued at $44 million.

The payments were suspended in 2014 when ISIS took over large swathes of Iraq but were resumed in 2018, following the group’s defeat.

Funds for the reparations come from a five percent tax levied on sales of Iraq’s petroleum and petroleum products.

The compensation is distributed by a UN agency to claimants who suffered losses or damages as a result of the invasion.

https://english.alarabiya.net/News/gulf/2021/12/23/Iraq-pays-final-Kuwait-war-reparations

 

[yota691]

Official: $79 billion in Iraq's internal and external debts

The actual external public debt is $29 billion

 December 24, 2021 10:42 am

 

Mubasher: The economic advisor to the Prime Minister, Mazhar Muhammad Salih, announced today, Friday, that the remaining internal and external debts on Iraq amount to 79 billion dollars.

Saleh said in a statement to the Iraqi News Agency (INA), that "as for foreign debts, there is a suspended amount that has not been settled under the Paris Club Agreement to settle Iraq's foreign debt, and it goes back to the so-called debts before 1990, estimated at 41 billion dollars, which requires that the debt is correct. To be discounted by 80 percent or more according to the terms of the Paris Club Agreement, with no more than $8-9 billion.”

He added that "the aforementioned amount appears in the accounting books of four Gulf countries at a rate of approximately 66 percent distributed between Saudi Arabia, Kuwait, Qatar and the Emirates, and it dates back to the era of the Iran-Iraq war and is expected to be written off by 100 percent because it is a debt associated with wars and not for development purposes."

He pointed out that "the remaining 34 percent belongs to eight different countries, and in general it can be said that the sovereign debt on Iraq is divided between the group of Paris Club countries and countries outside the Paris Club, and commercial debts."

Adviser to the Prime Minister explained that "Iraq's foreign debts, especially debts before 1990, were settled under the 2004 Paris Club Agreement, where it was agreed to write off 80 percent and more of those debts, whose initial estimates at that time approached $129 billion, and most of them were written off and the rest was scheduled. Debt over 20 years.

And he indicated that "despite the fact that Iraq made some external borrowings due to financial distress after 2014 as a result of the war on ISIS terrorism and the drop in oil prices and its direct impact on the country's public budgets, the total external public debt subject to repayment obligations does not exceed 20 billion dollars today."

He added, "As for the internal public debt, it is the largest today and amounts to about 50 billion dollars, but it is a debt between government financial institutions exclusively, and it is settled within the internal economic policies, and it is a low-risk debt," noting that "the increase in oil revenues will provide high financial leverage to settle the debts." The remnants of indebtedness and easy choices.

Salih explained: "In light of the foregoing, the public debt components can be re-analyzed again as follows: If the internal public debt touched nearly $50 billion, 67 percent of it goes back to the Central Bank of Iraq with an average annual interest of 3 percent, while the debt The remainder of it, which must be paid, is about $20 billion.”

He stressed that recalculating the actual external public debt is $29 billion, and that the actual total internal and external debt is $79 billion, and assuming that the gross domestic product for the year 2021 is $178 billion, the actual debt-to-product ratio is about 45 percent, and it is still falling within the safe range of EU standards of stability and growth.

[yota691]

Al-Kazemi’s advisor: The 2022 budget includes the payment of Iraq’s loans

• Time: 02/12/2022 13:29:15
•  
• Reading: 1,417 times

  

{Economic: Al Furat News} The financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Saturday, that the federal financial budget for 2022 includes the payment of loans incurred by Iraq.

Saleh told {Euphrates News}, "The 2022 budget includes the repayment of loans owed by Iraq, and this is determined by the ratio of internal and external debt and is called debt service."

He added: "Usually these amounts are calculated and included in the budget, and their amounts are determined, and the external debt is considered an important expenditure and is an important part of assessing Iraq's credit wall."

And he indicated that it "determines the country's ability to pay debts, so this matter enjoys high management," noting that "Iraq is keen to repay loans and has priority to pay out of respect for Iraq's financial position, as it gives it credibility."

Raghad Daham

[Wiljor]

"Iraq is keen to repay loans and has priority to pay out of respect for Iraq's financial position, as it gives it credibility."

 "determines the country's ability to pay debts"

Since Iraq is looking to become a global contender, and, compete in the international marketplace they must have "credit worthiness" Credibility mean the rating agencies Fitch, Moody's and Standard and Poor's rates Iraq according to their economic outlook or forecast and ability to repay. Below is a "copy paste" of how these agencies work. Iraq's current rating as of January 2022 is B to B- Once again I see progress  DV 

[currenzcraze]

**Al-Kazemi’s advisor: The 2022 budget includes the payment of Iraq’s loans**

Time: 02/12/2022 13:29:15
Reading: 884 times
Al-Kazemi’s advisor: The 2022 budget includes the payment of Iraq’s loans
{Economic: Al Furat News} The financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Saturday, that the federal financial budget for 2022 includes the payment of loans incurred by Iraq.

Saleh told {Euphrates News}, “The 2022 budget includes the repayment of loans owed by Iraq, and this is determined by the ratio of internal and external debt and is called debt service.”

He added: “Usually these amounts are calculated and included in the budget, and their amounts are determined, and the external debt is considered an important expenditure and is an important part of assessing Iraq’s credit wall.”

And he indicated that it “determines the country’s ability to pay debts, so this matter enjoys high management,” noting that “Iraq is keen to repay loans and has priority to pay out of respect for Iraq’s financial position, as it gives it credibility.”

https://alforatnews.iq/news/مستشار-الكاظمي-موازنة-2022-تتضمن-تسديد-قروض-العراق

[yota691]

Subject to Paris Club terms

The financial advisor reveals the size of the Iraqi debt and the date of its repayment

2022.02.21 - 21:15

 

  

Baghdad - people  

Today, Monday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined the size of Iraq's internal and external debts that are due to be paid, and the date for the end of the external debt.   

  

 

  

Saleh said, to the official agency, and Nass followed him (February 21, 2022): "Most of the foreign debts due to be paid will expire by the year 2028, including what is paid in one payment sometime during the next three years, and it is currently consumed by repayment within the so-called debt service. That is, paying the debt installments and the interest incurred,” noting that “the total remaining debt to be paid does not exceed 20 billion dollars, and there are outstanding debts, which are remnants of the Paris Club Agreement and belong to about eight or nine countries, four of which are Gulf countries, and are estimated at about 41 billion dollars and were not claimed by anyone. Of the official creditors and called debts before the year 1990.  

  

He added, "These debts are subject to the terms of the Paris Club Agreement 2004, that is, they must be written off by 80% or more, and they are hateful or obnoxious debts as they are called in the economic literature because they were associated with financing the Iraq-Iran war and not for development purposes."  

  

He continued, "As for the internal debt of about $50 billion, it is 95% within the government financial system, and its settlement remains within the state." Federal.  

  

On the size of the expected deficit in the 2022 budget, Saleh said: “There are two limitations to estimating the deficit in the federal general budget for 2022, the first: stabilizing public spending in the 2022 budget to be the same in the 2021 budget, which amounts to 129 trillion dinars,” noting that “raising the price of A barrel of oil from $45 in the 2021 budget to $60 (when estimating oil revenues in the 2022 budget while maintaining the same spending ceiling) means that the hypothetical or planned deficit in the 2022 budget will drop to be about 5 trillion dinars instead of 29 trillion dinars in the 2021 budget, which is A natural deficit within the data of the Financial Management Law, which authorized the annual deficit in the annual general budget at 3% of the gross domestic product.  

  

He pointed out that "the second limitation is that if total spending rises to 149 trillion dinars, and the price of a barrel of oil for budget purposes is $60, and the export capacity is 3.2 million barrels of oil per day, this means refining the same deficit amount in the 2022 budget to match the deficit in the 2021 budget and amount to 29 trillion dinars.  

  

He continued, "However, if the average barrel of oil reaches $74 annually and non-oil revenues are achieved with the same estimates for the year 2020, estimated at 20 trillion dinars, there is a possibility that we will reach a state of balance in the budget or be with a very simple deficit that does not exceed 5 trillion dinars, which is within the limits." The acceptable naturalness of the deficit when it does not exceed 3% of the gross domestic product, as we mentioned,” noting that “these scenes represent conservative minimum estimates regarding expected revenue growth and expenditure ceilings specified in the 2022 budget.” 

[yota691]

Al-Kazemi’s financial advisor: Iraq’s debts are $70 billion and will end by 2028

 

- 02-21-2022 09:04 PM - Read: 5272

 

Mazhar Muhammad Salih, the financial advisor to Prime Minister Mustafa Al-Kazemi, revealed today, Monday, that Iraq's outstanding foreign debts do not exceed $70 billion.

Saleh said in a press statement, that the foreign debts due to be paid "most of them will expire by the year 2028," noting that some of them are paid in one payment sometime during the next three years, and some of them are currently consumed by repayment within the so-called debt service, i.e. payment of debt installments and interest. .

Saleh pointed out that the total remaining debt to be paid does not exceed 20 billion dollars, and there are "suspended" debts, which are remnants of the Paris Club agreement and belong to about eight or nine countries, including four Gulf countries, and are estimated at about $41 billion, and were not claimed by any of the official creditors and are called debts before The year 1990.

He added, that this office is subject to the terms of the Paris Club Agreement 2004, meaning that it must be written off by 80% or more, and it is a hateful or obnoxious debt as it is called in the economic literature because it was associated with financing the Iran-Iraq war and not for development purposes.

He explained that the internal debt of about $50 billion is 95% within the government financial system and its settlement remains within the state. Iraq is one of the countries with relatively high creditworthiness within the global rating of creditworthiness and the ability to pay, which is made through annual allocations in the federal general budget.

On the size of the expected deficit in the 2022 budget, Saleh said, "There are two limitations to estimating the deficit in the federal general budget for 2022, the first: stabilizing public spending in the 2022 budget to be the same in the 2021 budget of 129 trillion dinars," noting that "raising the price of A barrel of oil from $45 in the 2021 budget to $60 (when estimating oil revenues in the 2022 budget while maintaining the same spending ceiling) means that the hypothetical or planned deficit in the 2022 budget will fall to be about 5 trillion dinars instead of 29 trillion dinars in the 2021 budget, which is A natural deficit within the data of the Financial Management Law, which authorized the annual deficit in the annual general budget at 3% of the gross domestic product.

He added, as for the second constraint: If total spending rises to 149 trillion dinars, at a price of a barrel of oil for budget purposes, $60 and an export capacity of 3.2 million barrels of oil per day, this means refining the same amount of deficit in the 2022 budget to match the amount of deficit in the 2021 budget, which amounts to 29 trillion. Dinar.

He pointed out that "in spite of that, if the average barrel of oil reaches $74 annually and non-oil revenues are achieved with the same estimates for the year 2020, estimated at 20 trillion dinars, there is a possibility that we will reach a state of balance in the budget or be with a very simple deficit that does not exceed 5 trillion dinars, which is within The acceptable natural limits of the deficit when it does not exceed 3% of the gross domestic product, as we mentioned, noting that “these scenes represent the conservative minimum estimates regarding the growth of expected revenues and the expenditure ceilings specified in the 2022 budget.”

[yota691]

Al-Kazemi’s advisor sets two restrictions for estimating the deficit in the 2022 budget

 

•  Yesterday, 20:31

Baghdad - conscious - Nassar al-Hajj

Today, Monday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined the size of Iraq's due internal and external debts, and the expiry date of the external debt, while highlighting two restrictions that he said are the ones who estimate the size of the deficit in the 2022 budget.

Saleh said, to the Iraqi News Agency (INA), that "most of the foreign debts due to be paid will end by the year 2028, including what is paid in one payment sometime during the next three years, and some of them are currently consumed by paying within the so-called debt service, that is, paying the debt installments and the interest incurred." Pointing out that "the total remaining debt to be paid does not exceed $20 billion, and there are outstanding debts, which are remnants of the Paris Club Agreement and belong to approximately eight or nine countries, including four Gulf countries, and are estimated at about $41 billion, and were not claimed by any of the official creditors. They are called debts before year 1990".

He added, "This office is subject to the terms of the Paris Club Agreement 2004, that is, it must be written off by 80% or more, and it is a hateful or obnoxious debt as it is called in the economic literature because it was associated with financing the Iraq-Iran war and not for development purposes."

He continued, "As for the internal debt of about $50 billion, it is 95% within the government financial system, and its settlement remains within the state." Federal.

On the size of the expected deficit in the 2022 budget, Saleh said, “There are two limitations to estimating the deficit in the federal general budget for 2022, the first: stabilizing public spending in the 2022 budget to be the same in the 2021 budget, which amounts to 129 trillion dinars,” noting that “raising the price of A barrel of oil from $45 in the 2021 budget to $60 (when estimating oil revenues in the 2022 budget while maintaining the same spending ceiling) means that the hypothetical or planned deficit in the 2022 budget will drop to be about 5 trillion dinars instead of 29 trillion dinars in the 2021 budget, which is A natural deficit within the data of the Financial Management Law, which authorized the annual deficit in the annual general budget at 3% of the gross domestic product.

And he added, “As for the second constraint: in the event that the total expenditure rises to 149 trillion dinars, and the price of a barrel of oil for budget purposes is $60, and the export capacity is 3.2 million barrels of oil per day, this means refining the same deficit amount in the 2022 budget to match the deficit in the 2021 budget and amount to 29 trillion dinars.

He continued: “However, if the average barrel of oil reaches $74 annually and non-oil revenues are achieved with the same estimates for the year 2020, estimated at 20 trillion dinars, there is a possibility that we will reach a state of balance in the budget or be with a very simple deficit that does not exceed 5 trillion dinars, which is within the limits.” The acceptable naturalness of the deficit when it does not exceed 3% of the gross domestic product, as we mentioned,” noting that “these scenes represent conservative minimum estimates regarding expected revenue growth and expenditure ceilings specified in the 2022 budget.”

 

 

 

[yota691]

The government discloses the fate and size of Iraq's internal and external debts. They must be paid

 

 

1,717 Economie 2022/03/28 18:18 Baghdad Today -

Special Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, revealed today, Monday, that the government has paid many of the external and internal debts owed by the government, especially the internal ones, which are limited to the ministries of the state and the central bank, while the foreign ones are to the International Monetary Fund and the World Bank. Saleh said, in an interview with (Baghdad Today), that "the size of the external debt amounts to 20 billion dollars or a little less, and the process of repaying it extends to 2028, and there are other debts within the (Paris Club) countries, which are before the nineties of the last century," noting that "the number of creditors They are eight countries with a value of up to 39 billion dollars, but these debts will be deducted 80% of those debts and 20% will remain, and we believe that all this amount will be amortized, i.e. only the debts of the Paris Club countries.” Salih added that "the external debts on Iraq amounting to 20 billion, most of them came after 2014, and they are funds to buy weapons to fight the terrorist organization ISIS and defeat it, i.e. the days of the war against terrorism in front of the internal debts. It is for the Central Bank and the Rafidain Bank, any debts between departments that have nothing to do with individuals." Saleh concluded his talk about foreign debt by saying that "

[nannab]

Well Iraq has more than enough to pay it's debts with the billions from the recent sale of oil. 

[yota691]

It was imposed by two crises

Al-Kazemi's advisor explains the strategy to extinguish the internal Iraqi debt

2022.04.06 - 21:54

 

Baghdad - people  

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed, on Wednesday, the size of the internal debts and the circumstances that led to them, while he explained a strategy to extinguish them.  

 

  

Saleh said in a statement to the official agency, followed by "Nas", on April 6, 2022, that "the maximum limits for the internal public debt are approximately 70 trillion dinars, or the equivalent in foreign currency of 48 billion dollars, which are the debts imposed by the circumstances and conditions of two successive double crises that affected the national economy and in similar terms."  

  

He added, "The first crisis is the financial and security double during the years 2014-2017 due to the war on ISIS terrorism and the liberation of cities, accompanied by the decline in oil prices and the weakness of financial flows to the public budget due to the intensification of government spending in that compelling circumstance." The other is the dual crisis (financial and health). ) that hit the country throughout the year 2020, the global economy closed due to the Corona pandemic, the decline in oil prices, and the deterioration of the country’s oil revenues by 40% from their rates in 2019, forcing the House of Representatives to issue two borrowing laws in the year 2020.”  

  

And he continued, "In light of the foregoing, the strategy to extinguish the internal debts goes to repaying the government's debt instruments held by the government banking system, which is the device that currently holds about 98% of that debt, which is represented by treasury transfers, maturing only one year, and bears annual interest in The average is 3% for the various versions.  

  

And Saleh continued, “The debt repayment was postponed for many years due to the high financial deficit at the time, and the annual interest on it was satisfied by the public finances,” noting that “the strategy to extinguish the internal debts that was approved will be able to extinguish the internal debt during the period 2022 to 2044, which will enable banks The government’s commercial efforts to support the elements of its liquidity and raise the value of its investments, as well as to launch a good signal of high coordination between the monetary and financial policies because the Central Bank of Iraq is the highest holder of public debt instruments (treasury transfers issued by the Ministry of Finance) by accepting its deduction based on the banks’ desire (by liquidating them). This is within the scope of open market operations.  

  

The Council of Ministers had approved, in its session held last Tuesday, April 5, 2022, the adoption of the strategy for repaying the internal public debt for the years (2022-2024), which was prepared by the Public Debt Department / Ministry of Finance within the draft draft law on the federal general budget of the Republic Iraq for the fiscal year 2022 and the following years, while Cabinet Spokesman Hassan Nazim explained that "the vote on repaying external and internal debts came as a result of the rise in oil prices."

[yota691]

An economist explains the repercussions of the Iraqi debt-amortization strategy

2022.04.09 - 12:20

 

Baghdad - people  

The economic expert, Nabil Al-Marsoumi, stressed, on Saturday, the importance of paying the internal Iraqi debt, while noting that it "protects the oil surpluses from fraud and tampering."  

  

  

Al-Marsoumi said in his blog post, followed by "Nas" (April 9, 2022): "In the absence of an independent Iraqi renaissance project that employs oil revenues in achieving real economic development, moving the Iraqi economy from unilateralism to diversity, limiting dependency abroad and providing job opportunities for the unemployed, the decision The recent decision by the Iraqi government related to the approval of the strategy of repaying the internal Iraqi debt, which amounts to 70 trillion dinars, or 48 billion dollars, over a period of 3 years, represents a realistic decision.  

  

He added that it "will protect the oil surpluses from the greed and absurdity that some politicians seek, reduce the burden of the annual interest paid by the government, and increase the ability of the Iraqi economy to borrow internally again when oil prices drop below the level sufficient to finance the general budget."  

  

Earlier, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the size of the internal debt and the circumstances that led to it, while he explained the strategy to extinguish it.  

  

Saleh stated in a statement to the official agency, followed by "Nas", on April 6, 2022, that "the maximum limits for the internal public debt are approximately 70 trillion dinars, or the equivalent in foreign currency of 48 billion dollars, which are the debts imposed by the circumstances and conditions of two successive double crises that affected the national economy and in similar terms."    

  

He added, "The first crisis is the financial and security double during the years 2014-2017 due to the war on ISIS terrorism and the liberation of cities, accompanied by the decline in oil prices and the weakness of financial flows to the public budget due to the intensification of government spending in that compelling circumstance." The other is the dual crisis (financial and health). ) that hit the country throughout the year 2020, the global economy closed due to the Corona pandemic, the decline in oil prices, and the deterioration of the country’s oil revenues by 40% from their rates in 2019, forcing the House of Representatives to issue two borrowing laws in the year 2020.”    

  

And he continued, "In light of the foregoing, the strategy to extinguish the internal debts goes to repaying the government's debt instruments held by the government banking system, which is the device that currently holds about 98% of that debt, which is represented by treasury transfers, maturing only one year, and bears annual interest in The average is 3% for the various versions.    

  

And Saleh continued, “The debt repayment was postponed for many years due to the high financial deficit at the time, and the annual interest on it was satisfied by the public finances,” noting that “the strategy to extinguish the internal debts that was approved will be able to extinguish the internal debt during the period 2022 to 2044, which will enable banks The government’s commercial efforts to support the elements of its liquidity and raise the value of its investments, as well as to launch a good signal of high coordination between the monetary and financial policies because the Central Bank of Iraq is the highest holder of public debt instruments (treasury transfers issued by the Ministry of Finance) by accepting its deduction based on the banks’ desire (by liquidating them). This is within the scope of open market operations.    

  

The Council of Ministers had approved, in its session held last Tuesday, April 5, 2022, the adoption of the strategy for repaying the internal public debt for the years (2022-2024), which was prepared by the Public Debt Department / Ministry of Finance within the draft draft law on the federal general budget of the Republic Iraq for the fiscal year 2022 and the following years, while Cabinet Spokesman Hassan Nazim explained that "the vote on repaying external and internal debts came as a result of the rise in oil prices."    

[yota691]

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

 

- 04-29-2022 12:09 PM - Number of readings: 7255

 

Today, Friday, the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, revealed the date for the expiration of Iraq's debt payments.
Saleh said during a press statement: "There are debts owed by Iraq for the benefit of the International Monetary Fund, and they are loans that were provided after the year 2015 during the financial and security crises against ISIS terrorism at that time, and they may exceed four billion dollars and according to two successive programs and two tranches: the first was called (by means). Accelerated financing (with more than one billion dollars to support the 2015 budget,” noting that “the other loan between 2016 and 2017 amounted to nearly three billion dollars within the scope of a program called (credit preparedness arrangements).”
He explained that "these amounts are currently paid in installments with simple interest periodically and regularly, and they are part of the remnants of Iraq's remaining external debt that is really payable, which amounts to about 20 billion dollars, paid in installments until the year 2028 mostly."
The Prime Minister’s advisor had confirmed earlier that “the loans of the World Bank in particular are long-term and have grace periods of about 6 years, which often extend to about 14 years, and the interests on them are moderate, as they are similar to the interest of the London markets on dollar lending transactions (Liber) plus a percentage of A small additional represents the bank commission.