Iraqs internal and external debt is it in a stable classificationThe financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected that Iraq’s external debt until the year 2028 would not exceed the barrier of 21 billion dollars, stressing that the country’s creditworthiness is at a high degree of sobriety and reliability, according to which Iraq is placed in a stable classification, while he pointed out that the accumulation of… The debt came as a result of the national economy being exposed to two shocks.
Despite the accumulation of internal and external debts, the Parliamentary Finance Committee reassured that there would be no financial deficit in the country’s budget for the current year 2024, while specialists in economic affairs expressed their fear of the continued fluctuation of oil prices, hinting at the possibility of public revenues being affected in the event of a decline in oil prices. Black gold globally.
Saleh stated that, in my estimation, the external debt that must be repaid until the year 2028 does not exceed the barrier of 21 billion dollars, indicating that the repayment mechanism is subject to the actual current or ongoing allocations allocated in the federal general budget on an annual basis to pay the debt dues, according to the official Al-Sabah newspaper.
The government advisor explained that Iraq’s credit record, or creditworthiness, stands at a high degree of sobriety and reliability, according to which international credit rating companies have placed Iraq at rank B of the stable category over the past ten years, due to its high financial worthiness and commitment to paying its debt services. On an ongoing basis.”
Saleh calculated, during a previous press statement, the size of the country’s internal debt, while confirming
that the Iraqi economy was exposed to two shocks. He continued, “The internal public debt in Iraq is estimated at approximately 55 billion dollars, indicating that the accumulation of this debt came as a result of two shocks to which the economy was exposed.” The country between the years 2014 – 2021.
He added that the first shock was financial and security, following the country’s exposure to the threat of ISIS terrorist gangs, in addition to the war in which Iraq won against ISIS terrorism, which then required financing the budget deficit, due to the increase in military expenditures and the decline in oil prices. Saleh
pointed out that the second shock, which was healthy financial, was the result of the Corona pandemic crisis and the decline in oil price revenues at the same time due to the sharp cycle of oil assets and the loss of a barrel of oil in both shocks of approximately 40% of its estimated revenues as revenues for the general budget,” noting that this This prompted the financial authority in Iraq to borrow from the government banking market, mostly by issuing treasury bonds or annual treasury transfers that carry an average interest of about 3%.
The advisor noted that the internal public debt was traded exclusively within the government financial system, without intervention in the banking market except in a very limited manner, meaning that the internal debt, with its tools represented by bonds and treasury transfers, is traded at a rate of 95% exclusively within the government financial agencies.
In the midst of this, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, expected that there would be no financial deficit in the budget for the current year 2024, indicating that the government will submit amendments to the table of amounts, and these amendments are in the process of being completed and sent to the Finance Committee and will be studied there, approved by Parliament, and on its way to implementation.
Al-Kadhimi pointed out that last year’s budget, 2023, did not suffer from a deficit, but the current year’s budget, 2024, will not have a financial deficit, especially since oil prices are constantly increasing.
Contrary to the previous opinion, economic affairs specialist, Ali Al-Defafi, believes that the worsening situation in the region may lead to a delay in the arrival of oil supplies to consuming countries, and thus a decline in the financial revenues of some producing countries, expecting average oil prices to be stable between -75%. $80 for the current year.
Al-Diffai stressed the need to exploit the financial abundance achieved as a result of the increase in oil prices over the past two years, in establishing strategic projects and working to support the productive aspects that can contribute to supplementing the country’s financial budgets, especially the agricultural and industrial sectors, praising, at the same time, the government’s economic moves in Supporting the private sector, which will contribute during the coming period to reviving many local industries that could block the way for imported products.
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