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Iraq is moving to stop paying its debts DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Iraq is moving to stop paying its debts

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Iraq is moving to stop paying its debts Empty Iraq is moving to stop paying its debts

Post by claud39 on Thu Apr 16, 2020 8:29 am

Iraq is moving to stop paying its debts


16/04/2020



Iraq is moving to stop paying its debts 20208


Economy News _ Baghdad



The Iraqi government is moving to stop the repayment of foreign debt owed by Iraq in light of the country's low revenues due to declining oil prices, as ongoing consultations are being held with the International Monetary Fund in this regard.

The economic and financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, "Iraq consultations with the IMF continue to stop foreign debt deductions," praising the "notable positions of the IMF in amortizing Iraqi debt in the Paris Club in 2004."

 
Saleh told Al-Sabah that “Iraq, due to the Coruna virus and the fall in oil prices, entered into the so-called force majeure and it is a matter that afflicts all the countries of the world. Therefore, Iraq seeks to stop the repayment of its debts in the country, especially the money in the box.” Strong relationships with these important institutions. "

 
He added, "The fund will have a positive role towards Iraq through deferring debts or simplifying procedures, which is a possibility, but it needs high diplomacy."

 
For his part, the official spokesperson for the Governmental Information and Communication Office in the General Secretariat of the Council of Ministers, Ala Jaloub Al-Fahd, stated that “there are calls between the government and the International Monetary Fund to stop completing the debt incurred by Iraq and waiting for the response,” “No time” There are no payment claims. "

 
Al-Fahd explained to “Al-Sabah” that “the government and every year when it has the inability of the World Bank to lend to it in order to finance the budget, and this year there are a lot of things that will be taken into consideration, as the United States has proposed these It is good, especially since Iraq’s debt to be repaid to the cash fund this year is estimated at more than $ 10 billion. If there is an agreement, this will benefit Iraq with the economic and political situation that Live at this point. "

 
He noted that "the economy of Iraq is unstable, because it relies on oil by 95 percent and the remaining 5 cannot be collected now, due to the absence of taxes, fees, etc.", noting that "the movement includes not only international cash, but the interruption of the sector It is estimated to be approximately 139 billion dollars.

 
The International Monetary Fund had expected the Iraqi economy to shrink to a negative rate of 4.7 percent, while the economy of the Middle East and North Africa region would shrink by 3.3 percent this year on the back of anti-Corruption measures, a decrease in performance rates, a decrease in performance rates, . In the World Economic Outlook, the International Monetary Fund said that "the damage will be much greater than the recent financial crisis in the region in 2008-2009, where economic growth in Lebanon, which defaulted on its debt repayment, is expected to shrink by 12 percent, while Iraq is heading, The second largest producer in OPEC, to a negative rate of 4.7 percent.





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Iraq is moving to stop paying its debts Empty MONETARY FUND: ARAB COUNTRIES LOSE 323 BILLION DOLLARS IN 2020

Post by claud39 on Thu Apr 16, 2020 8:44 am

MONETARY FUND: ARAB COUNTRIES LOSE 323 BILLION DOLLARS IN 2020




 16/04/2020





Iraq is moving to stop paying its debts %D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%AF%D9%88%D9%84-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A%D8%A9-%D8%AA%D9%81%D9%82%D8%AF-323-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AF%D9%88%D9%84%D8%A7%D8%B1-2020








The International Monetary Fund warned on Wednesday that the debt, unemployment and deficit rates will increase in the Middle East, against the backdrop of measures to combat the emerging Corona virus and the decline in oil prices, which aggravates the suffering of economies affected by decades of war.




He said in a report that almost all the countries of the Middle East and North Africa will inevitably lose hundreds of billions of dollars in revenue, while he estimated the losses of the Arab countries at 323 billion dollars this year.




He explained in the report, "Regional Economic Prospects" for the month of April that "the Covid 19 pandemic and the decline in oil prices are causing great economic turmoil in the region, the impact of which may be long-term."




"While there is a great deal of uncertainty about the depth and duration of the crisis, this epidemic will exacerbate the unemployment problem in the region and increase the already high levels of public and external debt."




On Tuesday, the fund expected that the economy of the Middle East and North Africa region will shrink by 3.3% this year, against the backdrop of measures to combat the emerging Corona virus and falling oil prices.




The forecast for 2020 is the worst economic performance for the region, including all Arab countries and Iran, since 1978 when the economy contracted by 4.7% in light of regional turmoil, according to World Bank data.




The fund saw in a report on Wednesday that the economies of Arab countries, which have been riven by conflict for many years, will lose 323 billion dollars or 12% of their economies, including 259 billion dollars in the Gulf oil states alone.




The debts of Arab governments will rise by 15% or $ 190 billion this year, to reach $ 1.46 trillion, at a time when the cost of borrowing increases due to tight financial conditions.




The fiscal deficit in the Arab region is also expected to deteriorate from 2.8% of GDP in 2019 to 10% of GDP this year.

In order to mitigate the impact, the fund said, countries in the region must “strengthen social safety nets, provide temporary and targeted tax exemptions and subsidies”, as well as “reorient spending priorities, for example by reducing or delaying non-core expenditures.”




And he warned that "mishandling the spread of the disease could increase mistrust in local governments, sow seeds for more social unrest, and increase regional uncertainty."




He said that the economies of war-ravaged countries are expected to be severely affected, including Syria, Libya, Yemen and Iraq.













https://uabonline.org/%d8%b5%d9%86%d8%af%d9%88%d9%82-%d8%a7%d9%84%d9%86%d9%82%d8%af-%d8%a7%d9%84%d8%af%d9%88%d9%84-%d8%a7%d9%84%d8%b9%d8%b1%d8%a8%d9%8a%d8%a9-%d8%aa%d9%81%d9%82%d8%af-323-%d9%85%d9%84%d9%8a%d8%a7%d8%b1/
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Iraq is moving to stop paying its debts Empty FINANCIAL SUSTAINABILITY LEVELS IN FIVE ARAB COUNTRIES HAVE IMPROVED IN PREVIOUS YEARS

Post by claud39 on Thu Apr 16, 2020 8:49 am

FINANCIAL SUSTAINABILITY LEVELS IN FIVE ARAB COUNTRIES HAVE IMPROVED IN PREVIOUS YEARS




16/04/2020





Iraq is moving to stop paying its debts %D8%AA%D8%AD%D8%B3%D9%86-%D9%85%D8%B3%D8%AA%D9%88%D9%8A%D8%A7%D8%AA-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%AF%D8%A7%D9%85%D8%A9-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D9%81%D9%8A-%D8%AE%D9%85%D8%B3-%D8%AF%D9%88%D9%84-%D8%B9%D8%B1%D8%A8%D9%8A%D8%A9-%D8%AE%D9%84%D8%A7%D9%84-%D8%A7%D9%84%D8%B3%D9%86%D9%88%D8%A7%D8%AA-%D8%A7%D9%84%D8%B3%D8%A7%D8%A8%D9%82%D8%A9






 The Arab Monetary Fund issued a study entitled “Methodology for Calculating the Financial Sustainability Index, Practical Cases for Arab Countries”, which dealt with assessing the impact of public debt dynamics through the calculation of the Financial Sustainability Index, which shows the extent of the state’s ability to meet its financial obligations.




As the persistence of the deficit in the public budget leads to an increase in public debt, which is implied by the budget bearing additional burdens to cover the interest of debts, which is again reflected in the rise in the deficit and then the increase in borrowing and high interest rates, thus declining levels of economic growth.




The study indicated that measuring the financial sustainability index is considered one of the approved methodologies in identifying the ability of borrowing countries to fulfill their financial obligations, through assessing the effects of the development of macroeconomic variables on the public budget, especially the budget deficit and the public debt rate.




With the upward trend of public debt in developing countries, the issue of financial sustainability is receiving more attention by governments and by regional and international financial institutions, for the purpose of assessing developments of public debt that help achieve economic growth appropriate for economic and social development.




The study enabled the application of the "public debt dynamic equation" methodology to estimate the financial sustainability index, which states that in the case of a high rate of public debt (measured by its share in gross domestic product) than the target public debt rate, the government will work to achieve a surplus in the initial balance of the budget During a certain period to ensure a return to the target public debt rate.




In the context of the study, the financial sustainability index was calculated in a number of Arab countries during the period (2013-2018), where it was found that it achieved an improvement in the value of the index, which confirms the positive impact of macroeconomic stability, in addition to the effectiveness of the financial reforms applied during this period.




Despite controlling the initial budget deficit in these countries, the increase in public debt interest payments in some countries leads to higher financing needs, and therefore may affect the sustainability of public debt, without adapting the pace of financial reform.




On the other hand, the development of the financial sustainability index was explored during the period (2019-2022), based on a set of assumptions about the macroeconomic variables included in the "public debt dynamic equation", the most important of which is the rate of growth

Economic, inflation rates, interest rates, and public debt targets targeted by the government, as it was found that if these countries continued to follow the same current fiscal policy, they would record an improvement in the value of the financial sustainability index, but without reaching levels that would ensure financial sustainability was achieved, which is what It requires programming additional reforms in government finance for these countries in the medium term, whether they are reforms by public expenditures and revenues or in relation to methodologies for preparing and implementing the budget, and updating laws and legislations regulating government finances.




It is worth noting that the most important features of the reforms that Arab countries are working on lie in following up on economic diversification efforts and reforms of the support system and enhancing tax revenues and efficiency to meet increased government spending and improve public financial conditions, perhaps the most important of which is energy subsidy reform and modernization of tax systems.




On the whole, broader economic reforms include a mixture of spending cuts and progressive lifting of energy subsidies, as these reforms are issues related to areas such as pricing public utilities, shifting spending to building human capital, and increasing investments in areas attracting the private sector.




Based on the foregoing, the study concluded that Arab countries have recorded improvement over the past years in terms of gradually moving towards achieving financial sustainability, however, achieving the goal of financial sustainability in Arab countries may need more reforms in government finance, whether it is within the framework of completing the current reforms or in The framework for implementing the financial reform program in the medium term.










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Iraq is moving to stop paying its debts Empty Iraq is looking with the {IMF} to stop paying its debts

Post by claud39 on Thu Apr 16, 2020 2:17 pm

[size=36][rtl]Iraq is looking with the {IMF} to stop paying its debts[/rtl][/size]


Thursday, April 16, 2020





Iraq is moving to stop paying its debts Alsabaah-34831








Baghdad / Shaima Rashid
 
 

The government is moving to stop collecting foreign debts incurred by Iraq in light of the country's declining revenues due to the drop in oil prices, as it is conducting continuous consultations with the International Monetary Fund in this regard. Foreign Ministry, praising the "attitudes of the IMF in extinguishing Iraq 's debts at the Paris Club in 2004".



Saleh said to "Al-Sabah" that "Iraq, due to the Corona virus and the drop in oil prices, entered into what is called force majeure, something that afflicted the countries of the world as a whole. Therefore, Iraq seeks to stop the payment of its debts, especially as it is one of the founders of the International Monetary Fund and the World Bank in the 1940s. Strong relations with those important institutions. 



”He added that“ the fund will have a positive role towards Iraq by delaying debts or simplifying procedures, which is possible, but it needs high diplomacy. ”For his part, the spokesperson for the Government Information and Communication Office at the General Secretariat of the Council of Ministers stated , Alaa Globe Al-Fahad, "Having a key Between the government and the International Monetary Fund to stop completing the bureau due to Iraq and awaiting a response, "stating that" there is no response at the present time, and there are no claims for payment. 



"Al-Fahd told Al-Sabah that" The government and every year when it has a deficit that the World Bank has to lend to lend in order to finance the budget, and this year there are many things that will be taken into consideration, as the United States has proposed stopping debt repayment at this stage which is a good thing, especially since Iraq’s debts must be paid The IMF this year is estimated at more than 10 billion dollars, and in the event there is an agreement, this will benefit Iraq with the economic and political situation it is living in at this stage. 



"She pointed out that" the Iraqi economy is unstable, because it depends on oil by 95 percent and the remaining 5 cannot be collected. Now, for lack of tax and Fees and others, noting that the move does not include the international monetary only, but to stop deducting the debts of Kuwait and the dues of the Arab League, knowing that the total debt of Iraq is estimated at approximately 139 billion dollars. The International Monetary Fund has expected that the Iraqi economy will shrink to a negative rate of 4,



In the World Economic Outlook, the International Monetary Fund said: The damage will be much greater than the recent financial crisis in the region in 2008-2009, as economic growth in Lebanon, which defaulted on its debt, is contracted by 12 percent, while Iraq is heading , The second largest producer in OPEC, to a negative rate of 4.7 percent.






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