A government advisor reveals the size of Iraq’s foreign and internal debts: We plan to pay them
Baghdad today – Baghdad
Today, Wednesday (April 3, 2024), Muhammad Mazhar Salih, the financial and economic advisor to the Prime Minister, revealed the size of Iraq’s foreign and internal debts, while indicating a government plan to pay them.
Saleh told “Baghdad Today”, “Iraq’s external debt is very small and constitutes less than (30%) of the country’s gross domestic product, and this percentage is less than the standard and safe percentage, which is (60%) according to European Union standards.”
He explained, “Iraq has a plan to repay these debts, and the remaining debt is less than $20 billion. Nearly a third of it will be paid during this year and may decrease significantly over the next few years.”
He added, “The largest debt is internal, and this debt does not pose any risk, as it is within government financial institutions, and is not a debt between individuals and the government, and about (98%) is debt between the government, government banks, the Central Bank of Iraq, and the Ministry of Finance,” indicating that “there is A plan to settle these debts in the future in a way that does not constitute any burden.”
The financial advisor to the Prime Minister indicated that “the internal debt is estimated at 50 billion dollars, but it is within the official government financial institution, and the central bank controls approximately (64%) of it,” stressing that “the external debt is the most important and Iraq is committed to paying it.”
Yesterday, Tuesday, the Council of Ministers approved the recommendation of the Ministerial Council for the Economy (24207) for the year 2024, which included the approval of the Diwaniyah Order Committee’s recommendation 23942, related to foreign debt. The recommendation included :
1- The Ministry of Planning’s study of projects canceled from loans; To discuss the possibility of including it in funding sources from the federal general budget .
2- The Ministry of Finance will verify the existence of any financial obligations that may result from canceling these projects with the loan donors when implementing the decision .
3- Canceling delayed loans, worth $1.05 billion, and completing important projects from government funding sources .
4- Canceling borrowing requests worth $5.8 billion for the Basra water desalination and sky train projects, financing the first project from the regional development budget, and financing the second project by offering it for investment .
5- Reducing the current external public debt, amounting to $10.5 billion, to $8.9 billion .
6- Redirecting World Bank loans for lagging projects and other surpluses towards implementing the vital railway link project (Faw – Rabia – Fish Khabour) .
7- Contracting with an international financial consultant to audit and manage foreign debts in the future.
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