The government borrowed from banks more than 7 trillion dinars
The government borrowed from banks more than 7 trillion dinars
06/18/2016
BAGHDAD / JD / .. revealed a number of specialists in the financial and economic for government borrowing more than 7 trillion dinars from banks and the government since the beginning of this year respect the House of Representatives, while pointed out that the loans owed by Iraq since 2003 amounted to more than $ 90 billion, warning the inability of Iraq to repay those debts, causing significant economic problems.
A member of the committee MP Hussam punitive, Iraq was in a circumstance of Mali is very difficult as a result of lower oil prices and a lack of revenue and the absence of development projects that can compensate for oil revenues, prompting the Iraqi government to resort to the internal and external borrowing and that recommended by the federal budget.
He said the punitive Agency / KD / that the government borrowed from the public banks since January of this year and until last May more than 7 trillion dinars, in the hope that the government pay this debt in the form of payments after increasing revenues, but the government has so far not been able to the payment of any amount due to the continuing decline in oil prices and a lack of revenue.
He added that Iraq continues to borrow will make the weak and collapsed state economically because even in the event of increased revenues and higher prices will make the country pay debts without thinking about how to develop financial resources.
For its part, the parliamentary finance committee revealed that the internal and external loans owed by Iraq since 2003, and until last month stood at $ 90 billion, while attributed the government had resorted to borrow money to poor distribution in the state administration.
He said committee member MP Magda Tamimi told / KD / “The government continues to borrow despite the existence of liquidity sufficient to meet the expenses of the State to the end of the year,” indicating that the debt owed by Iraq since 2003, and until last month amounted to more than $ 90 billion did not government not pay any amount of them causing an increase of its value each year. ”
“The internal loans is the indebtedness of the government of the local banks (public and private), either foreign It’s money borrowed government from international banks and other friendly countries,” pointing out that “these loans will make Iraq the brink of bankruptcy in the event of continued low oil prices in the coming years.” .
Iraq has suffered from a severe financial crisis due to falling oil prices, which accounts for 93 percent of federal budget revenues, prompting the government to resort to the domestic and foreign loans to bridge the shortfall in the state’s expenses.
Iraq seeks member of the Organization of Petroleum Exporting Countries (OPEC) to seek support for its budget from the international community after shrinking revenues due to the oil price collapse two years ago which led to the widening budget deficit and delayed benefits companies producing raw sewage.
The Ministry of Finance has announced that in 19 of the last May Iraq for a loan exceeds the $ 5.4 billion interest rate of 1.5% from the International Monetary Fund might allow Iraq to get another $ 15 billion in international aid over the next three years, as the Islamic Development Bank announced he taught lend Iraq $ 3 billion in the reconstruction of liberated areas and rehabilitation of infrastructure.
Document Monetary Fund showed that Iraq is expected to face a funding gap of up to $ 17 billion in the current year is not able to measure more Alomwal.anthy / 8 /
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