World Bank: Iraq's economy is "fragile" and its debts have risen to $152 billion

[yota691]

World Bank: Iraq's economy is "fragile" and its debts have risen to $152 billion

2023-08-20 08:08

Shafaq News/ The World Bank announced that the Iraqi economy is fragile, and that the country's debts have increased to 152 billion dollars, noting that the Central Bank auction caused the redirection of hard currency to the parallel market, which led to a decrease in the value of the dinar against the dollar.

 

The World Bank said in the report issued on the economy in Iraq and its debts, under the title: (Renewed Pressures: Iraq's Recovery is in Danger), that "the Iraqi economy suffers from stagnation in non-oil gross domestic product, industries, and agricultural activities, which was accompanied by high inflation rates, as it lacks Iraq, under its current government, for wide-ranging structural reforms that would strengthen its economy away from oil.

 

He stated that "the annual budget approved by the government authorities is witnessing a significant increase in the volume of public expenditures by 59% over the previous year, which represents 74.3% of total spending, which will lead to a large fiscal deficit of 51.6 trillion Iraqi dinars - equivalent to 39.7 billion dollars." - Which represents 14.3% of the volume of public imports, i.e. more than half of the recent record reserves that were accumulated in the wake of the boom in oil prices.

 

And regarding the policies of the (central bank) in devaluing the local currency, the World Bank stated that "the devaluation of the Iraqi dinar led to an increase in overall and basic inflation, due to the heavy dependence on import operations in light of weak local production that is not supported by government authorities, which exposed the country's fragile economy." ".

 

The World Bank report added that "the standards of transactions adopted by the (Central Bank) through auctions for the sale of currency; caused the redirection of hard currency to the parallel market, which caused a decrease in the value of the dinar against the dollar."

 

According to the World Bank, "Iraq's lack of diversification of income sources due to the chaotic policies of successive governments led to a contraction of the gross domestic product by 1.1% in 2023 and an increase in the country's public debt to reach 58.3%, after it was 53.8% in the previous year, which will reach 152 billion." dollars, an increase of $10 billion, while the total external debt amounted to $50 billion, and the internal debt amounted to $102 billion, which means that government authorities borrowed about $60 billion internally in the previous three years, at a rate of $15 billion annually, with annual interest on internal debts amounting to 16 to 17% of the total debt.

 

According to the bank, “the prospects for the economic future in Iraq are still exposed to great risks, due to excessive dependence on oil, which makes it vulnerable to shocks in oil markets and global demand, as evidenced by the recent decline in oil prices, in addition to the factors driving fragility that pose fundamental challenges.” economy, such as rampant corruption, poor service provision, infrastructure development, and security risks.

 

The World Bank added that "the continuation of government authorities in pursuing these policies will make the country's budget in favor of the political parties that have delayed the wheel of development and made it suffer from major imbalances despite the passage of two decades of allegations of the end of the war."

[yota691]

Negotiations between Iraq and the World Bank to add $700 million in financing

Today, 15:55

 

Al-Ghad Press / Baghdad

Today, Sunday, the Minister of Construction and Housing, Benkin Rikani, announced that housing units in the new cities will become more important in the coming periods, while he referred to negotiations with the World Bank regarding adding $700 million in financing for the road field.

 

Rikani said that "7 projects related to traffic jams have been initiated, in addition to the referral of 13 projects," stressing that "3 projects will be referred during the next two weeks," according to the official news agency.

 

He added, "There is negotiation with the World Bank regarding adding financing in excess of $700 million," noting that "the issue is still in the negotiation stage between the Ministries of Planning and Finance and needs to enact a law in this regard."

 

He pointed out, "The new city projects are of great importance in easing the momentum from the center, and it is hoped that during the next 10 years, the housing units in the new cities will be more expensive and more important than the current cities."

 

[yota691]

The World Bank: The prospects of the Iraqi economy are at risk due to excessive dependence on oil

 

The World Bank

 August 20, 2023 01:40 PM

Mubasher: The World Bank said that the Iraqi economy suffers from stagnation in non-oil GDP, industries, and agricultural activities, which was accompanied by high inflation rates, as Iraq lacks under its current government; for large-scale structural reforms to strengthen its economy away from oil.

 

The World Bank stated in the report issued on the economy in Iraq and its debts, under the title: (Renewed Pressures: Iraq's Recovery is in Danger), that the annual budget approved by the government authorities is witnessing a significant increase in the volume of public expenditures by 59% over the previous year, which represents 74.3%. % of total spending, which will lead to a large fiscal deficit of 51.6 trillion Iraqi dinars - equivalent to 39.7 billion dollars - which represents 14.3% of the volume of public imports, or more than half of the last record reserves accumulated in the wake of the boom in oil prices.

 

Regarding the policies of the (central bank) in devaluing the local currency, the World Bank reported that the devaluation of the Iraqi dinar led to an increase in overall and basic inflation. Due to the heavy reliance on imports in light of the weak local production that is not supported by the government authorities, which exposed the country's fragile economy.

 

The World Bank report added that the standards for transactions adopted by the (Central Bank) through currency sale auctions; It caused the redirection of hard currency to the parallel market, which caused the devaluation of the dinar against the dollar.

 

According to the World Bank, Iraq's lack of diversification of income sources - due to the chaotic policies of successive governments - led to a contraction of the gross domestic product by 1.1% in 2023 and an increase in the country's public debt to reach 58.3%, after it was 53.8% in the previous year, i.e. it will reach 152 billion. dollars, with an increase of $10 billion, while the total external debt amounted to $50 billion, and the internal debt amounted to $102 billion, which means that government authorities borrowed about $60 billion internally in the previous three years, at a rate of $15 billion annually, with annual interest on internal debts amounting to 16 to 17% of the debt volume.

 According to the bank, the prospects for the economic future in Iraq are still subject to great risks. Because of the excessive dependence on oil, which makes it vulnerable to shocks in oil markets and global demand, as evidenced by the recent decline in oil prices, in addition to the factors driving fragility that pose basic challenges to the economy, such as widespread corruption, poor service delivery and infrastructure development, and security risks.

 The World Bank added that the continuation of government authorities in pursuing these policies will make the country's budget in favor of the political parties that have delayed the wheel of development and made it suffer from major imbalances despite the passage of two decades of allegations of the end of the war.

[yota691]

World Bank: Iraq's internal debt is estimated at $102 billion

Yesterday, 20:11

 

Al-Ghad Press/Baghdad

The World Bank said today, Sunday, that Iraq's internal debt is estimated at $102 billion, noting that its economy suffers from stagnant non-oil GDP .

The World Bank stated in the report issued on the economy in Iraq and its debts, under the title: (Renewed Pressures: Iraq's Recovery is in Danger), that the annual budget approved by the government authorities is witnessing a significant increase in the volume of public expenditures by 59% over the previous year, which represents 74.3%. % of total spending, which will lead to a large fiscal deficit of 51.6 trillion Iraqi dinars - equivalent to 39.7 billion dollars - which represents 14.3% of the volume of public imports, or more than half of the recent record reserves that have accumulated in the wake of the boom in oil prices .

Regarding the central bank's policies in devaluing the local currency, the World Bank reported that the devaluation of the Iraqi dinar led to an increase in overall and core inflation. Due to the heavy reliance on import operations in light of the weak local production that is not supported by the government authorities, which exposed the country's fragile economy .

The World Bank report added that the standards for transactions adopted by the Central Bank through currency auctions; It caused the redirection of hard currency to the parallel market, which caused the devaluation of the dinar against the dollar .

According to the World Bank, Iraq's lack of diversification of income sources - due to the chaotic policies of successive governments - led to a contraction of the gross domestic product by 1.1%, in 2023 and an increase in the country's public debt to reach 58.3%, after it was 53.8% in the previous year, i.e. it will reach 152 billion. $, an increase of $10 billion, while the total external debt amounted to $50 billion, and the internal debt $102 billion, which means that government authorities borrowed about $60 billion internally in the previous three years, at a rate of $15 billion annually, and with annual interest on internal debts amounting to 16 to 17% of the debt volume .

 According to the bank, the prospects for the economic future in Iraq are still subject to great risks. Because of the excessive dependence on oil, which makes it vulnerable to shocks in oil markets and global demand, as evidenced by the recent decline in oil prices, in addition to the factors driving fragility that pose basic challenges to the economy, such as widespread corruption, poor service delivery and infrastructure development, and security risks.

The World Bank added that the continuation of government authorities in pursuing these policies will make the country's budget in favor of the political parties that delayed the wheel of development and made it suffer from major imbalances despite the passage of two decades of allegations of the end of the war .

 

[yota691]

Expert on World Bank figures on public debt in Iraq: not correct

2023.08.21 - 00:00

 

  

Baghdad - people  

The well-known economist, Nabil Al-Marsoumi, said that the World Bank provided incorrect figures on the public debt in Iraq.  

 

Al-Marsoumi stated in a post followed by “Nass” (August 20, 2023), that “the World Bank’s figures on public debt in Iraq are incorrect, which is that the public debt for the year 2023 amounts to 152 billion dollars, the external debt is 50 billion dollars, and the internal debt is 102 billion.” dollars, while the ratio of public debt to GDP is 58.3%.  

  

He explained, “These figures assume that the 2023 budget will be fully implemented, which will result in adding about $31 billion to the total public debt. Numbers".  

  

He added, "Iraq's external debt, along with the frozen Gulf debt, amounts to 61 billion dollars, not 50 billion dollars, and after the budget is fully implemented, it will become about 70 billion dollars."  

  

And Nabil Al-Marsoumi added, "The internal debt amounts to 70 trillion dinars, and when the budget is implemented, it will become 100 trillion dinars, or about 77 billion dollars, not 102 billion dollars."  

  

He explained that "the total public debt will be in the event of the full implementation of the budget 138 billion dollars and not 152 billion dollars as the World Bank says."  

[yota691]

Counselor Mazhar Salih: The World Bank's estimate of Iraq's debt is unreal

 

August 30, 2023

Baghdad / Obelisk Al-Hadath: The Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, considered the World Bank's estimate of Iraq's debts at more than $150 billion exaggerated and unreal.

 

Salih said that the issue of Iraqi public debt requires a professional differentiation of its history and details, and not taking its numbers on their own without a clear logical analysis. Foreign debts are estimated at about 54 billion dollars, while the external debts payable until the year 2028 are estimated at about 23 billion, and there are debts due after 2028, so the external debt becomes about 30 billion dollars.

 

He added that there is a debt pending on the 2004 Paris Club agreement, i.e. pre-1990 sovereign debt belonging to four Gulf countries and four other countries, and it is about $40 billion, and if it is activated, if it is correct (because, as the economic terminology is, reprehensible debts because it financed the Iraqi-Iranian war in Then, if it is correct again, it must be deducted by 80% or more under the Paris Club agreement of 2004, to be less than $9 billion or less.

 

And Saleh continued, commenting on what the World Bank mentioned in its new report that Iraq’s debt exceeds 150 billion dollars: He said we do not know the method of calculating the debt in the World Bank report. From it, the external debt reached 50 billion dollars, as an expectation of the total internal public debt early, which was not achieved, and therefore the reading of Iraq’s internal and external debts, according to what was published by the World Bank, came to be about 152 billion dollars, and this is exaggerated rather than being about 84 billion dollars (excluding the balance attached to the Paris Club agreement as an abhorrent debt) and what has been published about debt balances is unreal and discretionary.

 

He pointed out that, however, the public debt-to-GDP ratio, even in light of its unjustified inflation, will remain between 54-57% of the estimated GDP for the year 2023, which is within the current safe economic stability zone, which is usually estimated at 60%.

 

Salih noted that the fiscal policy in Iraq adopts a highly disciplined system in adjusting the timing of payment of debt dues (annual installments and interest) or when extinguishing the debt once at its annual due dates, and there are fixed and accurately estimated annual allocations that are allocated in the general budget early to pay debt services. And its dues, especially Iraq’s foreign debts, and no failures were recorded in Iraq during a decade and a half, and this is what made Iraq’s credit worthiness high, as Iraq is located within region B in the global credit rating tables, which is periodically evaluated by well-known international credit rating companies since 2015 And until today.

 

He explained that the vast majority of domestic public debt is held by government financial institutions or the government banking system, which is an (exclusive) internal government affair. There is a strategy in dealing with this debt, especially since the monetary authority currently acquires about 64% of the total internal debt and has the ability to manage it. In coordination with the financial policy and with high accuracy, bearing in mind that the banking system annually obtains interest on that debt at a rate of 3%, which falls within the annual allocations of the general budget.

[rvmydinar]

On 8/20/2023 at 8:14 PM, yota691 said:

World Bank: Iraq's economy is "fragile" and its debts have risen to $152 billion

How Can Iraq RV the IQD while its debts have risen to $152 billion??

[yota691]

Iraq debt with World Bank figures are incorrect..the figures should be around $30B +/- as stated in the last article per Salih economic advisor...

[Bama Girl]

It seems to me Iraq has enough gold reserve to pay off this debt so it’s not as though Iraq is bankrupt. I believe Iraq’s economy is fragile due to its lack of economic diversification. 
 

[3n1]

58 minutes ago, Bama Girl said:

It seems to me Iraq has enough gold reserve to pay off this debt so it’s not as though Iraq is bankrupt. I believe Iraq’s economy is fragile due to its lack of economic diversification. 
 

 

... and if they could rein in the goi corruption some and stop squandering fighting over the oil among themselves there would be a Benz in every driveway and no national debt. 

[yota691]

Sudanese advisor: The World Bank's estimate of Iraq's debts at more than $150 billion is unreal

 

- 08-30-2023 06:19 PM - Number of readings: 3727

 

Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih confirmed today, Wednesday, that the World Bank's estimate of Iraq's debts of more than $150 billion is exaggerated and unreal .

 

Saleh said, "The issue of Iraqi public debt requires a professional distinction of its history and details, and not taking its numbers without a clear logical analysis. The internal public debt, which is approximately 71 trillion dinars, and which the government banking system still retains possession of those debts in the form of government bonds and treasury transfers, is estimated when evaluated in foreign currency." At about 54 billion dollars, while the external debt payable until the year 2028 is estimated at about 23 billion, and there are debts due after the year 2028, so the external debt becomes about 30 billion dollars .

 

He added, "There is a debt pending on the 2004 Paris Club agreement, i.e. sovereign debts before 1990 belonging to four Gulf countries and four other countries, which are about 40 billion dollars, and if they are activated, if they are correct (because they are, as is termed economically, reprehensible debts because they financed the Iraqi-Iranian war." At that time, if it is correct again, then it must be deducted by 80% or more under the Paris Club agreement for the year 2004, to become about less than $ 9 billion or less .

Saleh continued, "We do not know the method of calculating the debt in the World Bank report. It may have included the (hypothetical) deficit in the federal general budget 2023, estimated at about 64 trillion dinars, and part of it was adopted to reach the external debt of 50 billion dollars, as an expectation of the total internal public debt early, which is an issue." It has not been achieved, and therefore the reading of Iraq’s internal and external debts, according to what was published by the World Bank, came to be about 152 billion dollars, and this is an exaggeration instead of being about 84 billion dollars (except for the balance suspended on the Paris Club agreement as an abhorrent debt) and what was published Debt balances are not real and judgmental .

He pointed out, "Nevertheless, the public debt-to-GDP ratio, even in light of its unjustified inflation, will remain between 54-57% of the estimated GDP for the year 2023, and it is within the currently safe economic stability zone, which is usually estimated at about 60%. "

[Bama Girl]

1 hour ago, yota691 said:

 

Edited August 31, 2023 by Bama Girl
Misread the article, reply was in error but couldn’t delete 🙄

[screwball]

propaganda BS at its best.....

[yota691]

POSTED ON 2023-09-02 BY SOTALIRAQ

Iraq's economy is "fragile"... "shocking" international figures, so what about their accuracy?

With the impact of fluctuations in currency exchange rates and the reduction in oil production following the interruption of exports through the Turkish Kirkuk-Ceyhan oil pipeline, estimates indicate a contraction in the non-oil real GDP in Iraq by a high rate of up to 9% on an annual basis in the last quarter of this year. Compared to its counterpart in 2022, which means undermining the effects of growth achieved in the first three quarters of this year, according to estimates by the World Bank, which believes that the country’s economy has become “fragile.”

In this regard, the economist and financial expert Abd al-Rahman al-Sheikhly believes in statements to The New Arab that the World Bank estimates are “shocking” because they contain true and certain information, and they sound the alarm for Iraq’s economic future, but he believes, at the same time, that they contain some "Exaggeration".

For example, the figures announced in the bank's latest reports indicate that the total public debt is equivalent to 76 billion dollars, distributed among 55 billion internal debts and 21 billion external debts, while the debts Iraq can pay off easily, because it has a high domestic product, especially since Debt constitutes between 30% and 35% of oil production revenues only.

Al-Sheikhli also confirmed to Al-Araby Al-Jadeed that the Iraqi economy is “fragile” as described by the World Bank report, due to dependence on oil resources and the worsening rentier situation, with the decline in other sources of resources in the general budget, which made the economy rentier par excellence, adding to that the lack of economic relationship. The rationale between the volume of expenditures from financial allocations and the quantity and quality of the achievements achieved from government projects in light of corruption devouring huge sums, with the low level of service and development achievements achieved within the framework of the annual budgets of the state, with the increase in the percentage of poverty and unemployment and the high volume of debt borne by the national economy, and all of these, In his opinion, reasons made the economy weak.

Commenting on the causes of fragility, political analyst Haidar al-Moussawi believes to The New Arab that the most prominent of them is the spread of financial corruption in all sectors of life, and the state’s tendency to rely entirely on the oil sector, which feeds 98% of the gross domestic product and is considered the basis for the continuation of economic life. Poor management, the lack of development and reform programs, effective economic plans, the absence of a real vision to raise the general level of the country, and the lack of solid tools that contribute to alleviating the burdens of citizens and the economy, while “governments have not taken any effective measures to revitalize the industrial and agricultural sectors to be synonymous with the energy sector, In order to avoid the country an economic disaster in the future.

A number of International Fund experts had met with Iraqi officials in Jordan between May 24 and 31, and they discussed economic developments and general policy plans for the country's economy in the coming period, stressing at the conclusion of the meeting, in a detailed statement, that "the momentum of the growth of the Iraqi economy witnessed A slowdown in recent months, after the country recovered last year to the pre-coronavirus situation.

The World Bank followed that occasion by asserting that “the Iraqi economy is fragile,” noting that the central bank auction caused the redirection of hard currency to the parallel market, which led to a decrease in the value of the dinar against the dollar, and thus led to a significant increase in food prices.

According to the World Bank report issued entitled “Iraq’s Recovery is in Danger” dated August 20, there are renewed pressures, “as it suffers from stagnant non-oil gross domestic product, industries and agricultural activities, accompanied by high inflation rates, while Iraq lacks under its government The current situation calls for wide-ranging structural reforms that will enhance its economy and diversify its public treasury revenues, rather than relying solely on oil.

In this context, the World Bank expressed its reservations about the recent general budget, as it criticized the large increase in the volume of public expenditures by 59% compared to the year 2022, representing 74.3% of total expenditures, which will lead to a large fiscal deficit of $ 39.7 billion, representing 14.3% of the volume of expenditures. General imports, more than half of the recent record reserves accumulated in the wake of the oil price boom.

According to a report issued by the International Center for Development Studies in London last Wednesday, Iraq annually loses no less than $5 billion as a result of its import of oil derivatives despite having the second largest oil reserves in the Organization of Petroleum Exporting Countries (OPEC). One million barrels per day, while its current production does not exceed 950,000 barrels, while the return of the Baiji refinery to work would raise refining capacity to 1,260 million barrels, which would meet the country's consumer needs for petroleum products.

[rvmydinar]

On 8/31/2023 at 10:20 PM, yota691 said:

The World Bank's estimate of Iraq's debts at more than $150 billion is unreal

Will this Iraq's debts of $150 billion be able to be forgiven before Iraq RV the IQD??

[yota691]

Despite the abundance of cash reserves, why does the Iraqi government not pay its internal debts?

 Two days ago

913

 

Iraq has huge cash reserves from oil revenues exceeding 113 billion dollars, at a time when it suffers from internal debts estimated at 70 trillion, which raises many questions about the reasons for the government not paying these debts, getting rid of the interest burdens owed on them, and investing the money to provide new resources.

 

Last July, Deputy Governor of the Central Bank of Iraq, Ammar Khalaf, announced that foreign exchange reserves had risen to 113 billion dollars, benefiting from the improvement in the price of oil, which constitutes 96% of the total national product, while he confirmed that the volume of internal debt had increased to 70 trillion Iraqi dinars (about 47 trillion Iraqi dinars). Billion dollar).

 

For his part, the Governor of the Central Bank of Iraq, Ali Al-Alaq, revealed last August that the government owes an amount of 46 trillion Iraqi dinars ($34.6 billion), as debts owed to the Central Bank.

 

As oil revenues rise and fall according to market prices, current government spending includes $47.6 billion annually in salaries for about 12 million employees, while defense, security, and service spending consumes about $60 billion, out of a total revenue of about $120 billion annually.

 

Internal and external debt

 

In this context, economic academic Ali Daadoush explains, “The public debt is divided into two external parts amounting to approximately 13 billion dollars until the beginning of 2023, and these are paid on an ongoing basis and deducted from the oil revenues achieved as a result of the rise in oil prices above the price of a barrel of oil specified in the general budget.” .

 

Daadoush added in a press interview seen by Taqadum, “In addition to the presence of external debt amounting to $5.8 billion, pre-2003 debt, and unaddressed debts outside the Paris Club amounting to about $40 billion, which have not been claimed by the Gulf states.”

 

He continued, saying, “As for the internal debt, it has reached about 70 trillion dinars, of which 50 trillion are for the benefit of the Central Bank of Iraq, and these are rescheduled from time to time, with an interest determined by the government.”

 

He believes that “the government’s hesitation not to pay the internal debt is a result of its many obligations towards investment and service projects within the government curriculum, especially since the size of the planned deficit in the general budget for the year 2023 amounted to about 64 trillion dinars, and this also prevents the government from paying the internal debt, which portends the existence of “Financial and economic problems facing the current government in the near future.”

 

He pointed out that “an opportunity was available to pay off the internal debt before the Corona crisis, specifically during the period (2017-2019), during the achievement of financial abundance, but it was not paid as a result of the lack of a clear-cut plan, in addition to the failure of private banks and some parties that financed the internal debt to demand their debts.” Because it has high liquidity through which it can confront banking risks, if any.”

 

Daadoush concluded by saying, “In general, the external debt is paid with continuous debt service, while the internal debt is paid only from time to time in very small amounts.”

 

The economic and financial expert, Mahmoud Dagher, agrees with what Ali Daadoush said about the continuation of external debt payments, and the size of internal and outstanding debts, stressing to Shafaq News Agency: “There is nothing preventing the payment of internal debt, most of which is to the Central Bank.”

 

Efforts to recover rights

 

In turn, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, says, “The issue of Iraq’s debts for its loans granted to other countries that were previously provided by the Iraqi Fund for External Development between the mid-seventies of the last century and the beginning of the eighties is raised from time to time, which stopped following the outbreak of the Iran-Iraq war.” “.

 

Saleh explained in a press interview seen by “Taqaddam” that “most of these loans were granted to developing countries in Africa, Asia and Latin America, and claims are still outstanding on the remains of those loans that have not been repaid and are pending repayment and are estimated at less than two billion dollars.”

 

He adds, “It is believed that part of it has been subject to those countries’ agreements with the Paris Club, as they are sovereign debts and belong to groups of poor countries. Despite this, efforts are being made to restore the country’s rights through diplomatic means and methods.”

 

Nabil Al-Marsoumi, professor of economics at Basra University, said in a blog post that “the public debt in Iraq at the end of 2022 amounted to 94.94 trillion dinars ($63.3 billion), of which 70.5 trillion dinars ($47 billion) were internal debts.”

The internal and external (debt service) (installment + interest) in the current year’s budget amounts to 18.96 trillion dinars ($12.6 billion) annually.”

 

Al-Marsoumi adds, “Perhaps the most dangerous thing about the budget is that it is tripartite and not annual, which means the continuation of spending in the next year, not on the basis of 1/12 of actual spending, but rather on the basis of what was allocated in the budget in the previous year, and this may lead to the government giving free rein to the budget.” Internal and external borrowing, especially with the disappearance of the cash surplus that will be used in this year’s budget, in addition to the fact that it is possible that the budget will continue in its current form without amendment in the next two years and without Parliament having the legal powers to reject this or amend it, which will drown the country in a sea of debt. “.

 

Al-Marsoumi continues, “The legislation of the tripartite budget will give the government full legal powers to borrow 41.5 trillion dinars not in 2023, but also in 2024 and 2025, which means that the government can borrow internally and externally without referring to Parliament, an amount of 121.5 trillion dinars during the tripartite budget and for the years.” “The three 2023, 2024 and 2025.”

 

Big risks

 

It is noteworthy that the World Bank described the Iraqi economy as “fragile,” and stated that the country’s debts had increased to about 152 billion dollars.

 

He said in a report issued last August, “The annual budget approved by the government authorities witnesses a significant increase in the volume of public expenditures by 59% over the previous year, which represents 74.3% of total spending, which will lead to a large financial deficit of 51.6 trillion dinars.” “Iraqi - equivalent to $39.7 billion - which represents 14.3% of the volume of general imports, that is, more than half of the recent record reserves that accumulated in the wake of the boom in oil prices.”

 

According to the World Bank, “Iraq’s lack of diversifying sources of income due to the chaotic policies of successive governments led to a contraction of the gross domestic product by 1.1% in 2023 and an increase in the country’s public debt to reach 58.3% after it was 53.8% in the previous year, meaning it will reach 152 billion dollars.” , an increase of 10 billion dollars, while the total external debt reached 50 billion dollars, and the internal debts amounted to 102 billion dollars, which means that the government authorities borrowed in the previous three years internally about 60 billion dollars, at a rate of 15 billion annually, with annual interest on internal debts amounting to 16 to 17 % of the amount of debt.

 

According to the bank, “Iraq’s economic future prospects are still exposed to great risks. “Because of excessive dependence on oil, which makes it vulnerable to shocks in oil markets and global demand, as evidenced by the recent decline in oil prices, in addition to the factors driving fragility that pose fundamental challenges to the economy, such as widespread corruption, poor service provision, infrastructure development, and security risks.”

 

The World Bank added, “The governmental authorities’ continuation of following these policies will make the country’s budget fall in favor of the political parties that have delayed the wheel of development and caused them to suffer from major imbalances despite the passage of two decades since the war was claimed to have ended.”

[southbeach]

On 8/31/2023 at 9:46 PM, screwball said:

propaganda BS at its best.....

Right, because it’s good debt not bad debt like here.

[screwball]

On 8/31/2023 at 1:01 AM, yota691 said:

considered the World Bank's estimate of Iraq's debts at more than $150 billion exaggerated and unreal.

 

yep BS as I said