Tuesday, April 9, 2024
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Government spokesman: We have adopted the principle of productive borrowing and integration into the international economic cycle, 9 APRIL
Government spokesman: We have adopted the principle of productive borrowing and integration into the international economic cycle
Government spokesman, Bassem Al-Awadi, said on Monday, April 8, 2024, that the government has followed the principle of productive borrowing and integration into the international economic cycle.
Al-Awadi issued a statement, seen by Ultra Iraq, which came as “an emphasis from the government on transparency in economic work, and informing public opinion and the national and international media of Iraqi economic performance.”
He added: “In light of the Council of Ministers’ approval of the recommendations of the Diwani Order Committee 23942, related to regulating external borrowing and structuring Iraqi public external debt, the government took a series of executive measures and adopted a package of financial decisions, which ended in reducing external public debt by more than 50%. The debt will decrease from $19.729 billion in late 2022, to $15.976 billion in 2023, reaching approximately $8.9 billion in the current year.”
Mazhar Muhammad Salih, the Sudanese advisor, spoke about “Iraq’s regularity in paying its external debts due annually, of which only approximately 20 billion dollars remain.”
Al-Awadi said, “These financial steps, (which included halting a number of borrowing operations due to their delay and unproductivity, organizing and managing debts and auditing them, and restructuring some debts and directing them to create strategic projects), aim to prevent the Iraqi economy from mortgaging obligations that may affect, in the future, the political decision.” Or in the path of national development, which coincides with an urban renaissance and infrastructure reconstruction, which opens the way to a promising future and a revitalized economy, in which our current and future generations perform best and obtain the greatest opportunities.
In its latest report , the International Monetary Fund warned of the doubling of debt in Iraq, through an increase in the deficit, as it expected “the public finance deficit to reach 7.6% in 2024 and to expand further after that with the expected gradual decline in oil prices in the medium term.” Leading to “a near doubling of public debt from 44% in 2023 to 86% by 2029.”
Al-Awadi pointed out that his government “organized the process of financing cooperation with the international community in specific contexts, including direct productive borrowing, providing sovereign guarantees to ensure the production of projects undertaken by the private sector for the benefit of the government, and sovereign guarantees provided by the government for the benefit of institutions that finance the Iraqi private sector importing production lines from In order to build factories inside Iraq.
He explained, "These steps pave the way for our country's further integration into the international economic cycle, and for the government to adopt the principle of productive borrowing only, which effectively leads to an increase in domestic product, and the financing of national service and productive projects with economic returns, in a way that ensures their completion and is not delayed."
He concluded by saying: “With these firm steps, the government renews its determination to continue making a qualitative shift in the Iraqi economy, in parallel with tangible development in the services, infrastructure and social care sectors, which are all the pillars required to meet the aspirations of our people throughout Iraq, and implement the government program with its priorities.” And its targets.
Iraq's external debt in 2021 amounted to about $13 billion, and it arose while financing the war on ISIS after 2015, as the government advisor stated 3 years ago. link
"IRAQ BANKS WILL OFFER BONDS TO THE PUBLIC" BY GOLDILOCKS, 9 APRIL
GOLDILOCKS
"This bank, on behalf of the Ministry of Finance, will offer bonds under the name ( Injaz Bonds ) to the public starting from 4/15/2024 until 5 / 15 / 2024"
Public bonds help to build the infrastructure of a country's businesses, and they go a long way in supporting a country's currency.
Getting public involvement in increasing the value of their own currency will help Iraq maintain a sustainable economy going forward.
Public bonds like these help to establish and secure a country's Sovereignty. This is a part of the process of Iraq reclassifying their currency.
Not long ago the CBI revealed to us that it would begin March 31st, 2024. They said it would be a gradual change. I copied the article for your review again on this matter.
"Based on the of the Board of Directors of this Bank number (191) of 2003 it was decided to give the mediation companies buying and selling foreign currencies under category (C) a period of time to merge to be classified as (A) or (b) until 3-31-24."
© Goldilocks
https://cbi.iq/news/view/2545
https://www.imf.org/external/np/mfd/er/2004/eng/0604.htm
Advisor to the Prime Minister: Government measures put Iraq at the forefront of countries in foreign investment, 9 APRIL
Advisor to the Prime Minister: Government measures put Iraq at the forefront of countries in foreign investment
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Tuesday, government measures that put Iraq at the forefront of countries in foreign investment, while indicating that the development path and the Al-Faw port have strengthened the government’s vision in encouraging foreign investments.
Saleh told the Iraqi News Agency (INA): “The Iraqi economy is characterized by two basic features that help give it preference in foreign investment. First, cash flows in foreign currency are reflected in the current account of the balance of payments relative to the gross domestic product, which is estimated by international economic and national centers at a surplus estimated at (positive). 7%) Iraq also ranks second in OPEC oil production and fifth in the world in that production.
He added: “As for the second advantage, there is a wide range of investment opportunities available provided by transportation, digital communications, housing and construction activities, which end with encouraging partnership between the state and the private sector in the manufacturing industry and various technological fields, the latest of which was the Cabinet’s adoption of the facilitating instructions in its last meeting that encourages the existing partnership between...
The state and the private sector, which is based on the principle of mutual win-win and is an attractive signal for foreign direct investment,” pointing out that “the investment law frames the provision of an attractive investment environment for investors, especially the economic surplus trends of the countries of the region and their orientation towards profitable investments in Iraq in the industrial, agricultural and other fields, which... It gives a positive signal to international investment in general to be attracted to Iraq and investigate promising opportunities there.”
He stressed that “the Development Road Project, as a development strategy that adopts the idea of development-leading projects, constituted the central call for international companies to participate, starting from the port of Al-Faw and ending with the Turkish border, for economic connection with Europe, which... This means that the state's economic vision is based on encouraging direct foreign investments in development activity in Iraq, whose natural resources are abundant in the ground.
He explained, “Iraq is ranked ninth in the world in terms of natural resources in the ground, and ranked first in reserves per square kilometer of investable natural resources such as (phosphate, sulfur, and other important reserves).
A study conducted by the FDI Intelligence website, which specializes in foreign direct investment affairs, stated that “Iraq was ranked fourth among ten countries in the latest classification, and this classification was evaluated based on several criteria, including growth in gross domestic product, the inflation rate, growth in capital spending in foreign direct investment, and the growth rate in foreign direct investment projects.”
The study indicated that “the growth rate of Iraq’s gross domestic product reached 2.9%, while the inflation rate reached 3.6%, and the growth rate in capital spending in foreign direct investment witnessed an increase of 371%, and the growth rate in foreign direct investment projects reached 95 percent.” %,” indicating that “these numbers reflect the noticeable improvement in the investment climate in Iraq and the efforts made to strengthen the economic sector and attract more foreign direct investments.” link