Advisor Mazhar Saleh: Sovereign guarantees encourage the business environment in Iraq, 2 OCT

 Advisor Mazhar Saleh: Sovereign guarantees encourage the business environment in Iraq

The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained that the sovereign guarantees relate to covering the issue of default by sectoral entities, stressing that these guarantees are one of the factors of stability and encouraging the business environment in Iraq in a sustainable manner.

Saleh said that the sovereign guarantees granted by the state to various contracting parties express the government’s guarantee that the obligation between the contracting parties will be fulfilled in the event of the primary debtor’s failure to pay.

He added that sovereign guarantees are related to covering the issue of default on the part of sectoral entities, specifically government entities benefiting from the processing, contracting and construction work for investment projects with a strategic dimension. Sovereign guarantees can also cover all types of obligations and pledges in extensive detail, pointing out that sovereign guarantees are before they are granted in the law. The general budget is considered an integral part of financing by borrowing, and one of the components of public debt, in accordance with the international standard in describing government debt and the method of calculating it.

He pointed out that the granting of sovereign guarantees is carried out with great precision by the executive authority and in accordance with the strategic importance of guaranteeing major development projects and encouraging major companies and the business sector to work in our country.

He continued: Therefore, the sovereign guarantees granted by the state to the entities that prepare or implement projects constitute one of the factors for stabilizing and encouraging the business environment in Iraq in a sustainable manner, and removing obstacles and risks that impede development and economic progress, according to the strategic priority that requires granting sovereign guarantees or guarantees.

Prime Minister, Muhammad Shiaa Al-Sudani, confirmed earlier, during his meetings in New York, that the government will provide sovereign guarantees in the budget law to establish industrial and agricultural projects in Iraq.  link