The government resorted to internal loans to cover the deficit
The government resorted to internal loans to cover the deficit
25/02/2015
The Ministry of Finance, said the government will work to bridge the current year’s budget deficit through domestic borrowing, the liquidity of the central bank, Rafidain and Commercial Bank of Iraq.
The director of planning and financial management in the ministry, Hilal Taan, in his interview with Radio Free Iraq, that “these banks sufficient liquidity to meet the budget deficit, and to spare the government borrowing from international banks.”
But a member of the parliamentary finance committee, Abdulkadir Mohamed, asserts that “the local banks will fill part of the deficit of the budget year 2015, in light of expectations of higher oil prices, which will bring more funding to the state treasury.”
Economist, Dargham Muhammad Ali of his “optimistic showed the possibility of bridging the state budget deficit by borrowing from local banks,” and calling him “the most effective solution to finance the budget.”
The Ministry of Finance has held a lengthy meeting on Monday, the twenty-third of February, with the central bank, and directors of a number of other banks in the presence of Congress Parliamentary Finance Committee, to discuss ways to finance the budget deficit.
iraqhurr.org
