View Full Version : Iraq depends on internal loans until the moment

06-15-2015, 04:22 AM
Iraq depends on internal loans until the moment

6/15/2015 0:00

Government went to borrow from individuals b {credit} bond
BAGHDAD - Alaa al-Tai
Despite going through the country from economic hardship and fiscal deficit set by the general budget of $ 25 trillion dinars, but the government so far has not received from third parties any amounts are based in Dam deficit on domestic borrowing, with the study of the idea of ​​activating borrowing from individuals next step in if needed the country as part of a major international system depends "credit bonds" .aota this within the work the government is currently in the activation of a long economic and oil strategy term to diversify its crude oil, petrochemical, gas processing, exporting and refining of petroleum products sources, according to what reported by the Economic Adviser to the Prime Minister the appearance of favor Economic .alkhbayr said in an exclusive interview with "morning": that the expenses of the war on "Daash" which fought Iraq impacted significantly on financial resources and introduced into the country in the fiscal deficit, which prompted the government to think about maximizing financial resources and reduce costs to meet the Aladz.utaba "Approved solutions to cover the deficit are made through domestic borrowing mechanism or external," noting that "the government and until the moment only on domestic borrowing adopted to finance the deficit and did not resort to external borrowing after," pointing out that "these loans are still in the process of consultations with international financial organizations "Saleh, stressing that" Iraq's financial losses during the whole year since the entry "Daash" last June amounted to 15 percent of gross domestic product in general, "attributing the reason to find oil exports in Kirkuk and Baiji and stopped production in some areas Alsaknh.onoh that" the cost of war on Daash planned in the budget, as has been installed the 25 trillion dinars and mechanisms of deficit financing, "adding that" the government faced the problem of lack of financial resources, which fell by more than 50 percent because of the decline and fluctuation of oil prices on which the federal budget by 85 percent During the first half of this year. " He stated that "the consultations conducted by the Ministry of Finance yielded a tentative agreement with the Bank and the International Monetary Fund for grants Iraq soft loans and is an initial step, you may need the country in the next stage to finance the deficit through various external sources including multilateral for which Iraq is a member of international organizations." .

He acknowledged the benefit of that "government is seeking a mechanism for the disbursement of the money put in accordance with the priorities and how well thought out so that they have a multi-faceted utility if allocated for the investment budget and emergency situations on the back of the questions raised in the negotiations with the international organizations," likely "to be the general trend to spend that money for the budget investment mainly for the issues of emergency to give the value of that debt. " Saleh also revealed the government went to activate the domestic borrowing singles instead of borrowing from the banking institutions, which relies on the remittances of Treasury that mimic the banks only when it is possible to borrow from individual public which is more flexible, pointing out that the idea is currently studying and applicable universally. And include the idea issuing support national personnel and the public called "Sindh credit," the central bank puts a ceiling up to 10 trillion depends on supply and demand by marketing and acceptance of the other writ, indicating that this mechanism features in addition to the interest approved them to maintain their purchasing power and how equal the future also called"bonds measured" .oavad that "individual lending system in place globally and desirable because it saves money and gives the signal reassurance to the public in terms of maintaining constant purchasing power and the amount of benefits with a simple return," expected that "the State resorting to implement this idea when needed", adding that There is a tendency to activation of Sindh and asked to world markets, which is called "European Sindh", where needs a credit rating of Iraq and to support this process and are made through international companies specialized in marketing and the existence of a credit rating of Iraq can go up value and reduced the cost of doing so.