Uncertain future of the economy of the land of black Iraqi ..aldion exceeded $ 100 billion
Uncertain future of the economy of the land of black Iraqi ..aldion exceeded $ 100 billion ..
Posted 22/02/2017 01:18 PM
Economic analysts and politicians, contend exceeded the size of Iraq’s debts accumulated $ 100 billion, with many of the problems suffered by the Iraqi economy, and the amount of public debt, the impact of the country, this was the result of the collapse in oil prices, and the costs of the war being waged against al Daesh.
They also affirm that the termination of Iraq’s foreign debt and settling a file operation is very important, not NH will reflect positively on the country’s economy and encourage foreign companies to invest in the country and the development of the banking sector.
He called on “the progress of policy development institute,” at a seminar held in the Baghdad government for the detection of internal and external debt details, owed by Iraq, whether those belonging to the former regime, or they borrowed governments after 2003, and the statement of the areas of spending, and how to achieve no scorer borrowed.
Former MP Mehdi al-Hafez, who moderated the symposium pointed out that the World Bank loans, and the Islamic Development Bank, and the European Union, and Japan, in addition to the traditional debt of some of the Gulf states stands heralded in foreign financial dealings of Iraq.
He noted there is a case of a misunderstanding between the different circles in the country on the international loan that will be granted to him, between supporters and opponents, calling to clarify some things related to this file, Will importance of loans to Iraq, or whether it can be abandoned, and reliance on vulnerable local resources with the exception of oil revenues that occupy the largest space in the financial Ngttiyath.
He said Hafiz that circumstance the country’s general bad and difficult, and unnatural, and should address the political and financial its crises, through sound management and real review of the political, financial management, noting that Iraq put the current is unable to decide anything because its political system is incapable of determining the interest of the crisis country according to objective criteria, and this is a big problem, according to Hafiz.
According to reports of the Inspector General of the US for reconstruction to a loss of 6.6 billion dollars since the change in Iraq in 2003, and the establishment of foreign Coalition Provisional Authority, said Hafiz, anonymity Exchange (6.6) billion dollars from the funds of «Development Fund for Iraq»; which confirms that the standards of appropriate control the money the fund vulnerable to manipulation, waste, and abuse.
Hafiz said that “the International Council for advice and oversight” made a lot of questions about the inefficiency of financial performance at the time.
And the Keeper that debt is familiar to a lot of countries financial issue, and perhaps match in importance with the national needs of each country, and stressed that Iraq is committed to reorganizing its relations with the World Bank and the International Monetary Fund under Security Council resolution 1483, for the year 2003 and to seek to settle the debt with the Club Paris .
He added that Iraq today has two choices key sectors first the continuing desire to obtain external financial support, due to the agreement, which took place in the Paris Club in 2004, and to compel Iraq to some foreign and benefits of debt, and the other is the search for Iraq’s money and restore response to national interests.
Financial Advisor to the Prime Minister, Dr. He said the appearance of Mohammed Saleh reviewing important details, as it revealed the value of the debt on Iraq were as follows:
* Debt write-off in 2004 was $ 100 billion.
* Sovereign debt (owed) for 65 countries, 19 of them within the Paris Club 0.46 outside the club.
* Commercial debt amounting to $ 19 billion, and includes
– A small debt of 35 million, were paid $ 4 billion, out of $ 19 billion debt.
– Large debts reduced by 80%, and the rest has been scheduled on 18 years,
Paid semi-annual installments, and issued the first Iraqi support worth 2.7% of the large debt, so the debt has fallen from $ 19 billion to $ 5 billion.
* Debt Gulf Countries considered in favor of a problem, although it without interest,
* Russia’s debt was handled within the Paris Club, it has been reduced to 100% This is useful for Iraq.
The internal debt: represents 45% of the value of public debt, and the central bank contributed to the provision of these debts after deducting transfers to the lack of possibility to the other banks, but not this policy, economic situation in Iraq may have been to big problems for the payment of salaries and wages of central bank reserves, which is why reserves of the country decreased, according to Saleh.
The internal debt is divided into two categories:
* First borne by banks and the Ministry of Finance undertakes a plug, such as the salaries of companies.
* The second return to the previous system, and (related to print currency).
Saleh revealed that the real debt of 17 billion + 6% interest +41 +46 Gulf debt domestic debt.
This total Iraqi debt becomes almost $ 110 billion
And it disclosed that Iraq’s relationship with the World Bank and International Monetary Fund began in 2004, and we can not ignore the reasons that led to the deterioration of the situation in the country because of local politics that brought us to this situation, stressing that if we want to take the right decisions should do proper management according standards of governance that are managed through the democratic institutions in the country.
Paris Club: is an informal group made up of 20 state-of-millions of financiers officials, and the economies of these countries is one of the largest economies in the world, which provides financial services such as re-states the city debt rescheduling package.
• post-conflict agreement Iraq will get under which a loan of $ 700 million is not a decision the Convention, but Iraq did not receive this loan, that is classified within the countries emerging from conflict to the international community contributes to the write-off of debt by 90%, but after the rise in oil prices, called Fund Monetary Iraq to reschedule its debts, depending on the extent of the possibility of Iraq’s debt sustainability and repayment Vtm amendment case stamina and payment of 10 to 20% after the improvement of oil prices.
• debt for the year 2017 and will get Iraq from the International Monetary Fund, which pledged $ 5.3 billion, and received Iraq to 1.250 billion dollars pledged to the World Bank for $ 3 billion in Iraq, he received a billion dollars in addition to Miliridolar, came aid, and there are government bond worth two billion dollars, to be able to enter Iraq from the financial markets, including the billion dollars guaranteed by the US government an interest rate of 2.4%.
• There is support another one billion dollars during this year Iraq will receive 1.250 billion dollars from the International Monetary Fund, and another billion from the World Bank and another billion will get it from sources (Germany and Italy) under the commitments of Seven industrialized nations that have pledged about $ 4 billion, and that the All of these soft loans, he said, and does not involve any prejudice against Iraq are repaid over 18 years, including 5 years grace simple interest.
He warned in favor of dealing with the debt profile so that the country does not reach the loose phase, indicating that the debt will be subject to an external auditor in accordance with international standards, the statement about the debt precise and detailed setting, the report will be issued in the coming period.
He stressed to reconsider Convention «Paris Club» before 2020 to begin repayment, which could expose the country to the 2022 crisis, the date and the move will be through diplomatic channels, and includes a total debt of Iraq, and renegotiate with encourage countries that have debt belonging to the former regime.
President of the Board of Supreme Audit, Dr. Salah Nouri eating the same symposium is another aspect of Iraq’s debt profile, indicating that the loans are divided into two categories:
• Class I for the purpose of financing the deficit in the state budget for which is now in negotiations with the IMF and the World Bank to secure ministerial commitments and provinces, including payments to contractors, explaining that these benefits can not be paid by the Office of Financial Supervision authentication, has been cut off a run good in this area in addition to the what has been done with respect to entitlements farmers, which reached completion rate with 80%, and there are 729 billion dinars ready to pay dues Contractors amounting to 4.8 trillion dinars, indicating that «the Court» seeks to settle the dues, according to the completion of the audit of each batch.
• Class II, a developmental debt, which is allocated to finance development projects in health, oil, water, sewer and other emergency project areas, which are very important projects; as they provide services to citizens, and should be followed up by the authorities concerned to ensure that the loans with the goals came for.
He pointed out that Nuri in 2012 was linked to a fund set up under the chairmanship of Minister and headed by the Undersecretary of the Ministry of Finance, the follow-up mission and the search for Iraq’s money is not known or is not documented, but the fund is unable to perform his mission which it was established.
He disclosed for providing one of the American companies offer for up to $ 3.5 billion of Iraq’s money and lost them money present in Beirut for a commission agreement was signed with this company, but canceled the agreement shortly after the start of work after that was published the names of the employees in the newspapers, and therefore they would be at risk Prime liquidation because the company itself is a former US official.
The banking expert Samir Nasiri, he stressed that go on the government to borrow is the mismanagement of public funds and failure in managing the economy and the wrong policies, and lack of access to financial abundance, calling for detecting debt file details in a framework of transparency and the right of people to hold the government accountable.
Alnasiri urged economic elite to hold the government accountable for the budget and the mechanics of calculating the price of a barrel of oil, after rising to $ 55, and thus we will have teams is supposed to reimburse the budget deficit, and dispense with the country borrowing should keep the public on these details.
Economic expert, Dr. Abdullah al-Bandar pointed to World Bank loans despite the decline in usefulness, but payable by the specified time, and does not accept compromises the basic problem is the lack of coordination between monetary and fiscal policy during the period 2004 -2016 with regard to debt.
A t the follow-up to international scholarship were not clear as well as the assets of Iraqi officials abroad are also not clear, pointing to the refinement of contracts with contractors, who should have been going on in advance to bind the government to pay their dues without the need to check now.
Bander and pointed to a contradiction between Iraq’s obligations with the IMF included to stop the recruitment of about absolute.
Financial expert, Dr. Obaid replaced warned of the danger of dependence on oil in the repayment of the loan, for fear of being any problem, and many problems, calling for loans that are directed to projects yield from which to pay the benefits of the loan.
He said the loans do not address the “accounting” but “statistically significant” by the Ministry of Finance, if has the record theft, will disappear all the debts, stressing that “the follow-up to Iraq’s money fund abroad,” born dead, because he is linked to the Prime Minister and chaired by the Undersecretary of the Ministry of Finance mired in problems , as well as its employees understand the representatives of government agencies, and they meet only once a month or even two months while you follow the debt to the institution working day, and this reveals the lack of seriousness in pursuing the recovery of Iraq’s money abroad, has gone through years and have not achieved anything noteworthy.
The economic expert on behalf of Jamil Antoine called to find a specialist administrative and efficient file management is not debt, a country mired in debt is productive and there is no reform in the industry and agriculture sectors.
He stressed the diplomat Ghalib Anbuge to activate the State Department diplomatic side, the political, economic, both to follow Iraq’s foreign debt profile, indicating that this is follow-View by the Ministry of Foreign Affairs and this represents a clear flaw which is not bad to take advantage of the information available to some foreign people in respect of the Iraqi funds abroad in return for cash.
The expert Azzam Badie firstborn from the Securities Commission, sees that he must return the fifties experience as was the establishment of a council of reconstruction and the resulting important projects in agriculture, irrigation, industry and others.
And between the main supplier of the Iraqi economy is oil, given the decline in the contribution of other sectors, and that the content of the investment budget is maintenance work, not economic projects, and that there is a big waste of money in the three presidencies, the judiciary and provincial councils, calling for a review of the debt exchange and where I went because future generations who bear the sins of the debt that is not directed towards real development.
But oil expert Hamza Jeweler called for a mechanism to pay the dues of contractors through the exchange rate of up to 70% with a remaining subject to the completion of the audit in its final form, adding that the difference between the price of oil on the world market and the sale of oil Iraq, amounting to about $ 7 and should go part of the price difference to pay off the budget deficit.
The present debt, as a result of the lack of state financial revenues and the lack of productive sectors alternative for oil reliable despite the existence of economic fundamentals, which can be utilized to maximize the financial resources of the state.
Through studies and previous research showing that there is a debt crisis sharply, and will increase if the borrowed money has tended to finance consumption and investment is produced.
And Iraq must resolve the problem of external debt or mitigation, to create a sense of balance and economic stability, it is necessary to formulate new policies establish an appropriate climate for economic development of the country in order to address the adverse repercussions of these debts from poverty and marginalization and subordination and dependence to international financial institutions, particularly the International Monetary Fund, which Iraq’s class as a fragile state due to regional conflicts; resulting in a decline in gross domestic product and rising inflation, calling on Iraq to cope with low oil prices.