Al-Abadi: The policies of the Al-Kazemi government will lead the country to financial collapse

 
10/24/2020

Economy News _ Baghdad

Former Prime Minister Haider al-Abadi warned, on Saturday, that the borrowing policies adopted by the government of Prime Minister Mustafa Al-Kazemi will lead to a financial collapse, calling on the government to control spending, besiege waste and maximize resources.

Al-Abadi said in an interview followed by Al-Eqtisad News, that “borrowing is not the safest solution, but rather a catastrophic policy that will lead to financial collapse, and if it is necessary to borrow; It must be converted into a productive and not a consumer borrowing. ”

He added, "The Al-Kazemi government has existential economic challenges, and it must control spending, besiege waste, maximize resources, and take painful and courageous economic decisions, otherwise the effects of this crisis cannot be overcome."

He explained, "The loss of the monetary mass due to the low oil prices and the increase in the operational budget is the reason for adopting the borrowing policy," warning that "borrowing is a failed and dangerous policy; With courageous measures, the shortage of financial liquidity can be avoided and the crisis can be overcome with the least losses.

Al-Abadi pointed out that "the imports of the outlets alone could increase if they were subjected to supervision and controlled centrally in all parts of Iraq, not to mention the huge financial returns from the telecommunications sector and public taxes if they were properly managed, which are possible and affordable solutions."

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