$ 60 BILLION OF IRAQ'S DEBT

$ 60 BILLION OF IRAQ'S DEBT



21-05-2017 11:21 AM

Baghdad News -
The head of the Institute of Economic Reform and former Iraqi Finance Minister Kamal al-Basri, «Iraq's debt exceeds 60 billion dollars». He explained that the oil revenues are called «money easy to earn» as the process of obtaining them is not difficult and expensive productivity, and the process of marketing and revenue easy. He said Iraq had "about one percent of the workforce producing more than 50 percent of GDP, and the cost of oil is $ 10 per barrel, while previously sold more than $ 100. When money is easy it is easy to spend and may not require all the precision required. "
 
Al-Basri pointed out that the economic feasibility evaluated by our various institutions for projects is not approaching the required level. He stressed that Iraq "is not alone affected by the decline in oil prices. In Iraq, 90 percent of the oil revenues and the other 10 are for fees and taxes. He pointed out that «the debt of Iraq was $ 140 billion dollars and the Paris agreement to reduce debt by 80 percent in 2004 and the Iraqi government to meet the requirements of the« Paris Club »to pay the remaining 20 percent, and there is a timetable for payment».
 
"Debt is achieved as a result of accumulations in fiscal policy. It is not a bad sign of economic performance. There is no country in the world free of debt," he said. "Debt is very desirable when it is in the form of loans used for investment and infrastructure purposes, Iraq is keen to be a public debt, and debt is the state's keenness to address the weakness of financial liquidity for the purposes of the development of society and the economy ».

Economist Star Al Bayati says that the experience of the International Monetary Fund (IMF) loans with many Arab regional and foreign countries or developing countries in general has gone through many problems. He added that the alternative that Iraq relies on is the privatization through a national strategy must be accelerated implementation and put it on the enterprises and government companies that are losing or self-managed and a heavy burden on the public budget.

He explained that «the feasibility of allocating these projects in a deliberate economic manner, such as liquidation and sale to the private sector or integration with the private sector or the entry of domestic and foreign investment in the rehabilitation again».

"There are easy means for Iraq if it chooses the principle of trade-offs in choosing its loans, the first of which is the investment, then comes the loans of the World Bank and some international organizations and bilateral loans between Iraq and a number of countries with financial abundance, while the loans of the International Monetary Fund Of hard loans for countries that have won or are trying to get them. "

He pointed out that this procedure makes the IMF the equivalent of the custodian of economic programs in those countries and naturally put these conditions in front of Iraq some of the problems that lead to the lifting of government support for some poor groups that are in need of support, in addition to the conditions And the IMF's loans are far from concessional or non-performing loans.

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Iraq is heavily in debt, and is still receiving billions from the IMF/World Bank, as well as loans and grants from other nations.

Once Iraq had reserves that topped $80billion, and they now hold less than $60 billion, and it appears their debt overruns their assets.

Not a time for revaluation.