Sudanese consultant: Internal debt exceeds 80 trillion dinars and a plan to gradually extinguish it
The economic adviser to the Prime Minister, Mazhar Mohammed Saleh, confirmed that Iraq’s internal debt exceeded 80 trillion dinars, while pointing out that there is a tight plan to gradually extinguish it by coordinating the two fiscal and monetary policies.
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In minute details, Saleh explained through {Al-Furat News} that: “The main dilemma faced by the country during the past years was the disruption of a number of development projects inherited by the tripartite general budget under Law No. 13 of 2023, which was designed on the basis of the average price of a barrel of oil of $70, and by exports not exceeding 3.4 million barrels per day.”
He added that “these exports were subject to a reduction of about 200,000 barrels per day under the OPEC Plus agreement, which called for resorting to internal borrowing again to implement the lagging strategic projects that had previously been stopped due to financial, security and health crises.”
Saleh pointed out that “the budget provided for an annual borrowing of 64 trillion dinars to face the probable deficit,” pointing out that “the Central Bank of Iraq keeps more than 50% of the internal debt within its asset portfolio, with high coverage in foreign currency, which ensures that there are no inflationary effects resulting from this debt.”
He pointed out that “remittances and bonds, as debt instruments, represent internal assets that have been deducted by the monetary authority, which caused an increase in monetary issuance; but they are completely covered by foreign exchange, despite the high monetary basis and public liquidity compounds in the economy.”
Saleh said to stress that “the annual inflation levels in Iraq are still under control, as they reached less than 3% for 2024,” stressing that “there is a tight plan to extinguish domestic debt and control its growth levels according to the criteria of financial strengthening in the coming years.”
Ragheed
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