Saleh: Iraq is still within safe levels of loans
Saleh: Iraq is still within safe levels of loans
3/16/2017 0:00
Baghdad / morning / Alaa al – Tai in
response to what is being said about the “inflation” debt owed by Iraq, assured the Adviser to the Prime Minister for Economic Affairs, the appearance of Mohammed Saleh, said that Iraq is still within safe levels , according to the global scale of borrowing and public debt, describing the strategy of the government ‘s economic reform that It included taking sentence orders and decisions to address the imbalance in the structure of the state of economic, financial and developmental aspects as ” a complete approach to comprehensive reform to achieve economic stability, development and reconstruction , ” while the economic Commission parliamentary promised what it called “dramatize the situation” of the debt as part of the electoral attempts.
Strategy successful
Saleh said in an interview for the “morning”, that ” the strategy of the government aims to conduct a comprehensive and radical reform to address the imbalance in the structure of the state , including measures and decisions to support the private sector and move the economy and rehabilitation of state – owned enterprises to overcome the current financial crisis.”
Saleh pointed out that “there is a dynamic government to involve the international community in support of Iraq project to restore stability and reconstruction phase,” noting that it was ” an important step that reflects the extent of Iraq ‘s interaction with the countries of the region and the world who supported Iraq in the war against terrorism and the challenges faced.” Saleh described OPEC ‘s agreement to cut global output as a “positive step”, with a significant impact in the financial and Iraq ‘s economic situation in the two – way: the first “short – term” according to external variables and impacts on the global market , which will contribute to the improvement of the status of the federal budget for the current year to Iraq through reduced supply and increased demand and will result in rising prices, with a share of Iraq ‘s production cut approximately 200 thousand barrels of crude oil, as well as the agreement commensurate with the need for global economic growth.
Economic Advisor to the Prime Minister added that “move put the oil market and budget through the reduction associated with the agreement will lead to a rise in the sale of crude oil prices globally and the inclusion of the federal budget , which prepared the adoption of the price of $ 42 a barrel of oil while it was almost in oil prices following the implementation of OPEC ‘s agreement to $ 50 what made Additional revenue for the budget. ”
The other trend is “long – term”, has between Saleh, that “during the period of scaled production growth and of the decision there will be a freeze on investments in the oil fields and the oil sector and limited to sustain the fields or the so – called” investment compensator “annually to maintain production capacity, and this OPEC ‘s agreement to be achieved first Vrgin due to price rises as a result of scaled production and the decision of the reduction and the second of the freezing of investments of the oil fields and limited to investments Indemnified to maintain production capacity rather than access to new investments result in adding funds at the present time. ”
And on government measures for economic reform, Saleh pointed out that the government has prepared a program of economic and financial reform to overcome the current crises , security and finance which continues to be implemented despite the collision of some of its paragraphs barrier real funding, as the war waged by Iraq against terrorism and sustain the military effort given priority including led to Extension of the steps of reform, “pointing out that” in contrast , has made the government ‘s policy are important steps in rebuilding the country as well as victories that dazzled the world and the end of the so – called liberation of the land and the rights of succession in addition to securing the necessities of life of the salaries and wages and the continuing priority in the energy that represents the sector of investment projects the backbone of the development sector. ”
Saleh , who said that” the government has adopted a program to activate the role of the private sector in reducing unemployment and creating jobs by firing six trillion dinars to give citizens loans to complete the industrial, commercial and agricultural projects carried out in coordination between the central bank and private banks by setting conditions for easy obtained and guarantees benefiting the owners of them and save public money and reduce bureaucracy or manipulation, “noted that” Rafidain Bank grants over the past years , loans to employees and citizens valued at US $ 900 billion dinars , not to recover the money fitfully a large proportion still due to poor management of those loans , “noting that” The government has given priority to the housing sector to promote urban renaissance through a successful strategy recently adopted “.uan parliamentary Finance Committee ‘s comments on Iraq ‘s debt , which were announced, which amounted to $ 100 billion, advisor confirmed economic Prime Minister, that number is exaggerated, pointing out that there are $ 40 billion subject to the agreement of the Paris Club and return to nine countries have not been settled so far , and in the majority of illegal claims and continued to have, as has been written off other debts by 80-100 percent, while the other debt and $ 46 billion represents an “internal debt” and not external are controlled ” , pointing out that ” the installation of religion and the concept differ according to the principle of proportionality.”
Saleh said that government measures have contributed to the increase in the volume of imports, pointing out that “there is a standard for debt requires not more than 3 percent of GDP, while we are now at 8 percent in the sense of religion still exists, and in other words , only increases the balance of public debt for 60 percent of the gross domestic product , a ratio that is where we are within safe levels , according to the global scale. ”
He noted Saleh that ” the reason Alabozor current budget deficit lies in operating expenses despite the pressure of spending to a large extent, and has been part of the operating budget deficit through loans, including the salaries and wages of employees to address,” adding that ” the bulk of it internal debts and by less external debt “.
In turn, said a member of Najiba Najib Economic Committee, in a press statement, said that “Iraq three types of debt, the first of the dictatorial regime debts arising from previous wars, amounting to nine billion dollars, while the second is the Paris Club debt and $ 14 billion in addition to the judicial claims the dictatorial regime and a total of $ 45 billion , “indicating that” the new debt came from foreign and domestic loans , including $ 30 billion , the Central Bank of Iraq and approaching the amount of which foreign loans for the period from 2005 so far. ”
Najib added that “recent loans do not dust it has gone on investment projects that deliver future benefits on the physical and service sides of the electricity and sanitation, infrastructure, railways, construction and housing benefits and few sectors.”
She said committee member , said ” the loan within the amount provided by the International Monetary Fund is five billion and $ 400 million will be received in three years , ” indicating that “through the full guarantee of the International Monetary Fund Iraq could obtain grants , financial loans within the agreement signed in 2016 with The international Monetary Fund called (SBA), the financial paybacks of Iraq is 18 billion and 300 million dollars. ”
Najib noted that ” the International Monetary Fund receives financial reports every three months on disbursements of funds, which prevents any financial waste or manipulation of such funds being that gets it will lose Iraq and the international loan and all other grants are expected access from other countries , ” pointing out that “most of loans are repaid for years to exceed ten years and up to 30 years and the benefits of a few. ” Najib They noted that “there are new policies that are drawn to overcome the failures of the previous budgets , explosive and if applied in the correct format and within the follow – up and supervision of the International Monetary Fund, Iraq will not borrow the next budgets , but on the contrary will be able to start paying the current loan incurred by him” .opent Najib, said that ” there are positive points are not her attention such as import dependence , which is becoming less whether the agricultural sector after the arrival of some materials to self – sufficiency, including sugar , or through the revitalization of the industrial sector areas of sewing clothes or food oil industry or printing within the country “, reducing the” the case of intimidation of debt, being part of the electoral attempts. ”
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