Iraq's debt is growing ... Will calls it fear?

Iraq's debt is growing ... Will calls it fear?

August 21 , 2016



Iraq, Baghdad: August 8 / August, made a member of the economic and investment commission in parliament Nora Albjara fears of Iraq's inability to fulfill payment of the debt, which finally Asthsalha, following the drop in oil prices to meet the annual budget deficit, as well as bridging the costs of the war on the organization. " Daesh "that dominated the Iraqi cities in June of 2014.

Predicted Nora Albjara, which quoted its fears to the agency, "the long-Presse" local Iraqi, the scenario is very bad case of the Iraqi economy in the event of inability to repay the debt, as it warned of "the face of Iraq similar to that in 2003, before economic conditions, where he was suffering from the accumulation of debt up to 125 billion dollars. "

It seems apprehensive Albjara justified, especially as the Iraqi government resorted to domestic borrowing and external option to bridge the spending deficit since oil prices dropped in the summer of 2014, until it reached 50 percent on the price at which the trader then, which is US $ 115, noting that Iraq depends by about 97 percent on oil to finance state spending, and has no formal statistics on the size of the debt incurred by him.

Despite the attempt of the Central Bank to adopt the principle of transparency in the financial situation by launching a website presents statistics and indicators of spending and debt and financial situation of the country and so on, but the website only included by simple statistics did not occur since 2010, is not enough to know what is the actual debt is required of him paid since the fall in oil prices in 2014.

He acknowledged one economists prominent in Iraq appearance of Dr. Mohammed Saleh, an economic adviser to Iraqi Prime Minister Haider al-Abadi, that there are no official statistics on the size of the debt, noting in connection with "the Monitor" to the estimated size of the external and internal debt owed by Iraq.

He explained Mohammed Saleh accent careful the reality of debt resulting from the Iraq during the rule of the former regime and has been the legacy of the successive Iraqi governments after the invasion of Iraq in April / May and it handled and repaid, and said: "There are 51 owes her State of Iraq, including the 10 countries outside the Paris Club." . He added: "The Paris Club countries, after Iraq held consultations with them became owes her about $ 9 billion."

He continued: "countries outside the Paris Club, Iraq owes it about $ 6 billion." There is also an "international private sector owes its Iraq Companies $ 2.7 billion, and the debt of these companies is pushing Iraq Interview benefits by about 5 percent a year."

According to Saleh, the ranks of the former regime in Iraq "odious debts" in the range of $ 10 billion, but that Iraq is not binding on all paid off, as a weapon of debt, or debt outside international controls, a so-called "odious debts".

Saleh pointed out that the debt after the invasion of Iraq in April / May 2003 "Not great," said: "The external debt in the range of $ 7 billion. The domestic debt is up to $ 34 billion, including debt owed to the former regime."

After Saleh presented the statistical figures mattress, he said, which it is exhaled from fatigue, "according to the GDP debt in the range of 60 percent, and this rate is our safe no reason to fear, in addition to that there is an international standard for dealing with religion." He said a firm tone: "The fact does not prevent us from taking care of these debts, although the safe position." He continued: "The IMF asked the Finance Ministry to an international company oversees the census Iraq's foreign debt and to find a strategy to repay the mechanism."

In the face of this, an economics professor at the University of Mustansiriya take Baghdad, Abdul-Rahman al-Mashhadani - one of the oldest Iraqi universities - on the Iraqi government to heart by not dealing with the debt transparently, he said in an interview to "the Monitor": "The absence of statistical official from the size of the debt is evidence of the absence of transparency, because they do not Tsarh men economy and society the size of the problem. "

He pointed out that it "conducted a statistical Iraq showed convicted by about $ 69 billion abroad," pointing out that "the problem of these funds were never used in the fields of investment, but also used in consumer areas, which are difficult to Iraq's ability to repay."

The look and point of view of Abd al-Rahman al-Mashhadani sound, as the Prime Minister Haider al-Abadi program had confirmed the diversification of sources of income, but after two years was still in kind the government is closely monitoring the oil price data, it did not challenge for the method used to rely on the proceeds of oil. Mashhadani pointed to "the lack of a strategy for the government to deal with the debt," expected scenario of the country if under the deal with debt and consumer spending ways, as he said, "may Nkpl debt, and make us mortgaging oil in order to be paid."

In fact, the external debt has always seemed a thorny issue, and also said Mohamed Saleh, the caution in dealing with the debt seems unavoidable, in addition to changing the adoption of successive governments on the proceeds of oil has become an urgent need, to pay off the internal and external debt and rid Iraq of economic reality redneck.

LINK

:tup: