Finance: Borrowing powers are part of the general budget until the formation of the new government

Friday 01 October 2021 16:21
 
Baghdad / NINA / - The Ministry of Finance said that the borrowing powers are part of the general budget law to address the transitional period until the formation of the new government.

The ministry indicated, in a press statement, to what was circulated on social media about the authorization of borrowing granted to the Minister of Finance in accordance with the recent decisions of the Council of Ministers, usually that the motive behind these false news is electoral propaganda only.

The ministry explained, "All the loans referred to in that decision were negotiated and approved months or even two years ago and are part of the budget approved by the House of Representatives, and the Minister of Finance has been authorized to make it valid during the transitional period between the elections and the new government only."

And she added, "The public has the right to know why the ministry was forced to borrow despite the recent rise in oil prices, and this is due to the fact that the government's current expenditures from salaries, retirement and social transfers amount to approximately 6 trillion Iraqi dinars per month, before other current expenditures and investment expenditures are added, and debt service at the local and international levels, and the fulfillment of arrears from previous obligations to the electricity and other sectors.

And the Ministry of Finance confirmed that "Iraq must abide by the decisions of the Organization of Petroleum Exporting Countries that obligate it to reduce its production of oil, and the dues of licensing contracts and compensation for the Kuwait war, which are deducted from export revenues, must be paid."

She explained, "The revenues that we get from oil exports per month amount to about 6.5 trillion Iraqi dinars at current prices, and it is completely wrong to claim that the ministry is borrowing without reason, because the government is obligated to borrow to meet budget goals and maintain credit rating stability in local and international markets."

The Ministry of Finance also indicated that it issues negotiable bonds to improve the work of the money market and provide safe and rewarding securities to investors and civil institutions, stressing its commitment to diversifying sources of funding and working insistently on reforming the tax and customs system after years of neglect./ End 5

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