Al-Bakhati: He warns of the “third loan”: a slippage of the local currency and a float of the dinar
Al-Bakhati: He warns of the “third loan”: a slippage of the local currency and a float of the dinar
2020-12-03
On Thursday, MP Jassim Al-Bakhati of the Al-Hikma Movement expressed his surprise at the government’s “desire” to obtain new borrowing to cover the expenses of the election commission, considering that the “third loan” indicates a “danger” to Iraq, which will lead to “slipping” the local currency and “floating” The dinar.
Al-Bakhati said in a press interview that “the government went earlier to the first borrowing for several reasons, including low oil prices, the health crisis and the global economic situation, which caused the entire suspension of many strategic projects and delays in paying employees’ salaries and other necessary needs,” indicating that “Parliament worked at the time.” On passing the first borrowing on the condition that the government provides alternatives at a later stage. ”
Al-Bakhati added, “What we have seen is that there is a retreat in the work of the outlets despite the government’s talk of putting its hand on these outlets to work on the automation project in them, and we have not seen any actual results on the ground that support the state’s treasury, and the street has become wondering about the reasons for repeated borrowing for several times and drowning Iraq with debts.” Large, “pointing out that” the government, after going to the second borrowing, presented arguments and reasons for submitting the request, including the desire to pay salaries. ”
He pointed out, “We have not yet seen any features of the existence of a budget for the next year, and we do not know what the percentage of deficit is in it, in addition to the fact that local resources do not know whether there is progress in their situation and what they provide to the state treasury so that we feel there is an improvement in performance, whether in ports, airports, taxes and other sectors.” Non-oil “,
He explained that “salaries are four billion and 900 million dollars a month, and oil provides about 80% of the amount, given that oil exports per day are 3 billion and 300 million barrels, and the full amount covers 80%, and the shortage and the difference can be provided by local alternatives.”
Al-Bukhati stated that “any third loan indicates a danger to Iraq and leads to the slipping of the local currency, the float of the dinar and the collapse of the local economy, and the government must benefit from previous experiences in dealing with its problems through bonds instead of repeated borrowing, without seeing any figure coming out to actually and realistically explain to us the financial picture.” For the country and what are the causes of the deficit, so that we can understand where the country goes instead of the state of uncertainty and lack of clarity of vision, and that there is transparency from the government and in numbers for what it has and what it owes in full, stressing that “a method that preceded events and talk in advance about the lack of salaries next month will lead to a break Society and it will have unacceptable consequences. ”
Al-Bukhati stressed, “The government’s desire to obtain new borrowing in order to finance the needs of the Electoral Commission with an amount of $ 300 million is surprising, and we do not know why it did not put this amount in advance in the second borrowing law in the chapters of other necessary expenses,” noting that “the government must open up in a manner.” Deal with it and be clear about its demands and that its procedures be of service to the people instead of focusing on borrowing, which will be the cause of creating major problems for Iraq. ”
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