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Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt

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Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt Empty Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt

Post by claud39 on Fri Jan 03, 2020 7:52 am

Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt


01/02/2020



Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt Mudher-M.-Saleh-image-2-1






The history of Iraqi debts in general and foreign ones in particular is a sad and dark fact in the modern economic history of Iraq. For the past four decades, the government debt has remained far from its philosophy of borrowing in order to invest in development and achieve economic prosperity by virtue of the exceptional circumstances and political factors.

 

In the last decade of the 1980s, during the war with Iran, external borrowing was used to finance the deadly war machine, which is a fatal consumer debt and odious debt, accompanied by internal borrowing for the same consumer spending purpose. In the year 2004, the Paris Club Secretariat estimated the external debt of Iraq for the pre-1990 stage at about $ 128 billion, at which time it was decided to write off 80% of it under the Paris Club Agreement.

 

That agreement was based on Security Council Resolution 1483 in May 2003 regarding the settlement of Iraq's external debt to its creditors. As debts accumulated before the year 1990 due to interruption of payments and the inability to pay and the application of the terms of the debt agreements formally signed with the various creditors, whether sovereign ones that belong to the group of nineteen Paris Club countries or to official creditors from the group of 54 countries creditor to Iraq from outside the Paris Club group, as well For thousands of commercial creditors. What the bilateral debt agreements have shown with the creditor parties has indicated decisions to pay the accumulated interest, whether on the level of the principal, or the acceptance of the delay interest, and according to the provisions of the debt contract, most of which are formally signed with the creditor parties in the 1980s.

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Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt Empty Re: Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt

Post by claud39 on Fri Jan 03, 2020 7:58 am

Financial policy papers
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Dr.. The appearance of Muhammad Salih *: A look at the history of Khune Dion


Dr.. The appearance of Muhammad Salih *: An overview of the history of Iraq's sovereign debt Mudher-M.-Saleh-image-2-1





Sovereign Iraq


My facts
The history of Iraqi debts in general and foreign ones in particular
The sad and dark in the modern economic history of Iraq. Religion remained
For the past four decades, the government has been away from its philosophy for the first decades
Borrowing to invest in development and achieve economic prosperity wisely
Political and exceptional circumstances and factors.
In the 1980s, during the war with Iran, borrowing was possible
I invested abroad to finance the deadly war machine, a fatal consumer debt
And debt odious, accompanied by internal borrowing for the purpose of spending
Consumerism itself. In 2004 the Paris Club Secretariat estimated a debt
Outside Iraq for the period before 1990, about $ 128 billion
It was decided at that time to write off 80% of it under the Paris Club Agreement.
That agreement was based on Security Council Resolution 1483 in May 2003
Concerning the settlement of Iraq's external debt to its creditors. As debts accumulated before
The year 1990 was caused by interruption of payments, inability to pay and the application of the terms of agreements
Officially signed debt different creditors, both sovereign and those that accrue with AD
For a group of Paris Club's nineteen or for a group of official creditors
The creditor country of Iraq is outside the Paris Club group, as well as the 54 countries
For thousands of commercial creditors. What the bilateral debt agreements have shown with
The creditor parties have indicated statements of payment of the accrued interest
The level of principal or acceptance of late interest (PDI) as per the contract provisions
Religion and location are mostly official with creditors in the 1980s
the past.


In the phase of the siege of the nineties and the imposition of international sanctions on Iraq
And the consequences of the Kuwait war and the consequences of its invasion, it took the issue of debt
And its burden is two different paths. First, domestic borrowing has been going up heavily
In the interest of public spending within the monetary tools and playing a deficit financing game
Inflated budget or public debt debt game
game monetization to provide sustainability for fragile reality in budgets
The stage of the economic blockade and its time to seek to operate the economic system machine.
As the real income of the Iraqi individual was confiscated through the use of something
The principle of automatic expropriation of individuals' savings and potential surpluses is called (the principle)
Waves of inflation and the inflationary expectations it generates
And suck it in advance
Public spending financed by issuance of cash or inflation). It is a mechanism of receipt
Automatic based on the permanent replacement of government debt instruments (treasury transfers)
Issued by the Ministry of Finance in cash issued to be accepted automatically in the annual budget (
Balance for the Central Bank of Iraq. Hence its adoption as a bad asset
Amortized at that time in the formation of the monetary base.
As for the second track, which is implementing the agreement with the United Nations, after it was made fun of
The international organization is one third of the Iraqi oil revenue exported through the memorandum of understanding or
The (Oil-for-Food-and-Drug) program began work on that rescue note
In 1996, that was to pay (foreign compensation) to war victims
Kuwait through the United Nations Compensation Fund UNCC and various
Their stripes, countries and institutions that have been myriad and for an amount
Billion dollars. Note that compensation is greater than 52, that compensation is not debt
Rather, sanctions were imposed by UN resolutions, including covering the costs of the inspection teams
Collected from the revenues of the MoU.
The international organization has kept Iraqi oil revenues in an account in the name of trustees
Of the United Nations within the arrangements for Chapter VII of the Charter of the International Organization.



Currently, less than 3 of the sums of these Kuwaiti compensations are left
Billions of dollars. As the other new stage in the life of Iraq began
Economic development and the development of its indebtedness since the beginning of the third millennium, specifically the transition period
The major politician from 2003 to the present, Iraq has not resorted to
Any borrowings of little importance. Unless it exposes our country suddenly, after a decade has ended
My time shift from political transition to two suffocating (security and financial) crises a year
2014 spanning until 2017 launched the operating loan wheel to take
Its ranges again. Most of the internal and external borrowing went to this time
Supporting the operational budget to ensure the sustainability of current budget payments
Especially salaries, wages and other obligations as well as reassurance
The war front against terrorism after crude oil prices fell from 80
$ 1 a barrel to less than $ 30 a barrel. If we take a cost
Crude oil production serviced by the international oil companies IOCs
The net revenue of a barrel of exported crude oil will be $ 20 at the time, though
Salaries, wages and pensions are designed for at least a barrel of oil
$ 80.
Thus the external debt came this time, mainly related to purchases
Weapons, equipment and rebuilding the armed forces to counter ISIS,
At its end, it has a high consumption nature in operating a machine
War and its tools, which were required by land liberation priorities.
It is noted that half of the external debt generated by the aforementioned crises
(Financial and security) after 2014 (especially external loans from
The seven major countries that were based on pledges made by those countries in
Tokyo Statement in May 2016 to Support Iraq in its War on Terror,
In addition to the credit provided by multiple international financial institutions
Parties such as the World Bank and the International Monetary Fund, totaling to date


About $ 12 billion odd (more than half or perhaps most of it has gone
To support the operational budget between 2015-2017.
Based on the above, the history of Iraqi indebtedness and over several decades
Government consumption spending
And different times have been closely related
As a result of wars, conflicts, sieges, crises and corruption, by a percentage
90%, and that the consumer debt burden may be equated to the other side of
Debt, if only to a limited extent, is linked to financing some of it with the generating development projects
For income. However, loan implementation projects also remained marginal in impact
In driving the country's economic growth and bringing about a significant economic transformation.
Thus, over the four decades of Iraq’s economic life, debt was not formed
Development related to the country's investment projects is only 10% of the total
Iraqi sovereign debt. As the Iraqi oil resources remained as a payment lever
Sustainable finance in the service of unproductive consumer debt, to register the country
Arab
Then several consecutive decades of lost development. for example
Grant expenditures, international aid, and concessional loans) amount or represent
The grant element has a high percentage (which is spent on
The Iraqi investment and infrastructure sector between 2003 and 2013
$ 94 billion. On its part, Iraq participated in the disbursement of $ 126 billion
The total actual expenditures on the government investment sector during
reach
Above the past ten years, $ 220 billion! The result is that the country has remained so
It still needs more than 8,000 school buildings and that there are 5.3 million
A person who lives in slums around unserved cities) and lacks networks
Sanitation, water and law enforcement services (until yesterday we all enjoyed it
With shabby parts of the infrastructure.
Despite the above, the overall economic situation of Iraq, whether visible or
Latent, still showing sustainability in the country’s financial and economic strength, sustaining it


Adequate foreign cash flows for payment and the ability to sustain and sustain debt service,
What made the total current debts of Iraq (internal and external) as a ratio of
The gross domestic product does not exceed 7.49%, at $ 115 billion
According to what is indicated in the debt schedules in 2019, those will decrease
The ratio to 6.48% in 2020, despite the rise in those debts
A little (in absolute terms) and according to expectations due to budget financing conditions
Federal Reserve 2020 and its projected deficit if higher output helps
GDP (from $ 235 billion in 2019 to $ 254 billion)
Dollars in 2020) in providing an effective weight will keep the ratio down
Normative for Iraqi debt in the year 2020. Accordingly, the six indebtedness rates are running
Towards a decrease towards or towards the safe limits of debt sustainability or less
Sustainability debt, Iraqi debt is still safe and far
Even on the maximum circuit of the international standard in determining acceptable ends of debt
As a percentage of GDP and with a thrust of no more than 60% ؜.
Yesterday, as of today, Iraq will have a financial space
Concluding space fiscal is appropriate
Referring to the positive expectations of international creditors and capital markets, to be made available
Managing public debt and fulfilling its service obligations at a more reassuring level
(*) Researcher, academic economist, and former deputy governor of the Central Bank
Copyright © Iraqi Economist Network. Republishing is permitted subject to signal
To the source. January 2, 2020
http://iraqieconomists.net/



http://iraqieconomists.net/ar/2020/01/02/%d8%af-%d9%85%d8%b8%d9%87%d8%b1-%d9%85%d8%ad%d9%85%d8%af-%d8%b5%d8%a7%d9%84%d8%ad-%d8%a5%d8%b7%d9%84%d8%a7%d9%84%d8%a9-%d8%b9%d9%84%d9%89-%d8%aa%d8%a7%d8%b1%d9%8a%d8%ae-%d8%af%d9%8a%d9%88%d9%86/




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