Iraqi government: Internal and external debts within safe limits
The Prime Minister's advisor for financial affairs, Mazhar Mohammed Salih, confirmed on Monday that Iraqi debts constitute only 35% of the gross domestic product
Saleh told Shafaq News Agency, "All of the outstanding internal and external debts still do not exceed 35% of our country's GDP, which means that they are within the safe limits of global economic stability standards."
He added, "We should not be too concerned about the issue of the internal public debt and its increase to more than 70 trillion dinars, which is within the standard limits for stability according to the European Union standards that allow the sovereign debt to reach 60% of the gross domestic product.
"
Saleh pointed out that "more than 90% of the domestic debt is held by the government banking system and is borrowing from within government funds and for the benefit of the federal general budget."
He added, "This indicates that the market is not concerned at all with domestic sovereign debts, as domestic debt represents operations within the government's balance sheet, so to speak, and does not pose any sovereign financial risks at all. The efforts of the financial and monetary authorities are combined to adopt a precise policy to achieve the common financial goals in the issue of financial consolidation, the basis of which is not to expand the annual financial deficit in the budget and to gradually reduce the size of the sovereign debt balance to the gross domestic product."
The Central Bank of Iraq revealed that domestic debts rose in 2024 to more than 73.3 trillion dinars link
IRAQ READY TO GO
The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alak, said that the country's monetary position is very excellent,
pointing out that there are no real fears of any economic crises occurring here or there
Al-Alak said in an interview with the official newspaper that "the monetary position in Iraq (very excellent) at present in terms of
controlling inflation and the high sufficiency
of foreign reserves,
which enables the Central Bank to be stable, defend the exchange rate,
and achieve monetary stability, despite the circumstances surrounding the
".country and the region
He pointed out that
"the reserve covers our needs, and this is what distinguishes the Central Bank of Iraq compared to other central banks
".in the region
He pointed out that "the central bank adopts an unconventional monetary policy, not only based on achieving monetary stability."
It does not remain "just attractive".. Iraq wants to invest its money "in projects abroad"
Revealed a member Parliament Iraqi MP Ibtisam Al-Hilali announced today, Monday, Iraqi plans to activate foreign investments, meaning that Iraq By investing his surplus money in projects abroad.
Al-Hilali said in an interview with Sumaria News, "Thanks to the good diplomatic relations that the government of Mohammed Shia al-Sudani has established with neighboring countries and the world, economic relations have also improved," noting that "there are large internal and external investments."
She explained that "domestic investments serve the country by improving the environmental situation and infrastructure," indicating that "foreign investments have a financial and economic return for Iraq."
She stressed that "we had a meeting with the French embassy to activate foreign investments," indicating that "Iraq is a capable country."physicallyHe can invest his money in foreign investments to benefit the public.Iraqand neighboring countries.”
Questions have often been raised about why the investmentIraqHis money is invested in various sectors, including external sports sectors as well as technology, similar to other countries, which could lead to a diverse financial return with the lack of non-oil revenues inIraqCompared to oil revenues. link
The Governor Of The Central Bank Told {Al-Sabah}: The Launch Of The “Riyada” Bank Is Near.
Second and third 12/02/2024 Cairo: Esraa Khalifa The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, revealed the imminent launch of the “Riyada” Bank to support small and micro projects, while
he expressed his optimism about the country’s monetary position despite the circumstances of the region, stressing that it is “very excellent,” and that the Central Bank is on its way to
completing the digital transformation in parallel with its success in Implementing the external remittance plan in accordance with international standards.
Al-Alaq said in an exclusive interview with “Al-Sabah” on the sidelines of his participation in the activities of the Arab Week for Sustainable Development (fifth edition), which was held in Cairo recently, that
“Riyada Bank will be contributed by Iraqi banks and with the support of the Central Bank itself in order to diversify the production base and reduce unemployment levels.” Providing basic foundations for sustainable development with the support of specialized international organizations.”
Green Bank
He added, “The Central Bank is adopting a financing initiative to purchase solar systems and license the (Green Bank) to be the first bank in the region to specialize in green financing and renewable energy projects as part of confronting the challenges of climate change.” He explained that
he announced this in a session on “The Role of Central Banks in Climate Change.”) which was held in Cairo. He pointed out that “the
Central Bank adopts an unconventional
monetary policy, which is not based solely on achievingmonetary stability using its traditional tools - although
this role has priority as it is a fundamental pillar in
achieving economic stability and providing a stable and attractive environment for the business sector and foreign domestic investment - as the changes
The challenges facing the world and their effects on the national economy require a broader role and new tools to avoid risks and create appropriate and stable conditions, and
one of those challenges is climate change.” He stated that
“the Central Bank of Iraq agrees with the opinion that climate changes have direct effects.” In the economy, due to the decline in rates of economic growth, displacement, unemployment, and poverty caused by natural disasters, drought, and poverty, which calls for central banks to take a role in confronting the risks resulting from this, in order to maintain acceptable levels of sustainable development.”
Stability indicators
The Governor of the Central Bank of Iraq added that he presented during the Cairo session;
He gave a detailed explanation of the development process in Iraq during the wars and unjust policies regarding Iraq’s resources and infrastructure, which led to serious declines in development indicators. He pointed out that “with the decline of the last waves of terrorism in Iraq and the achievement of security stability, indicators of economic stability began to grow, and local and foreign investment began.”
It is on an upward path, and the Central Bank of Iraq has achieved several basic factors in general stability by combating and controlling inflation, maintaining high foreign reserves, as well as through its initiatives to stimulate economic sectors and provide a safe environment and freedom of movement. Investments. Al-Alaq stated that “the experiences of countries have proven the pivotal role of small and medium enterprises, and therefore the Central Bank pays great attention to this issue,” pointing to “the roles required and expected of central banks regarding the challenges of climate change, including ensuring financial stability by assessing the risks associated with climate change.” Which requires monitoring, developing tools to measure them, conducting climate stress tests that simulate the impact of climate events on the economy and the financial sector, and encouraging green financing by including environmental, social, and governance standards in lending and investment policies,” he explained.
“The Central Bank of Iraq is applying these standards in the banking sector with the support of the UNDP, as well as encouraging banks to finance environmentally friendly projects,” and noted that “monetary policies can be modified to take into account the long-term impact of the climate, such as including grant-related securities within market operations.” "open". Regarding his participation in the “Sustainable Development Conference” in Cairo, Al-Alaq said: “It is an annual event held by the League of Arab States in cooperation with international and local partners. The title of the held edition was (Sustainable Solutions for a Better Future), and one of its activities was the launch of the High-Level Regional Forum on Investment.” And sustainability, which is the first of its kind. The forum aims to address the challenges and opportunities related to investment and sustainability in light of global economic trends, climate change and regional fragility.
It also aims to create a dialogue platform between governments, investors, banks and development agencies to enhance investment. Sustainable, and we participated with a working paper in the conference.” Digital transformation Regarding the digital transformation that the Central Bank of Iraq intends to implement, Al-Alaq said:
“There is a broad program, which takes on a great national dimension for us, and
it is the digital transformation, which is one of the government’s priorities in cooperation with the Central Bank, and we work together and with direct support from Prime Minister Muhammad Shiaa Al-Sudani. “To provide the requirements for this transformation, which constitutes an essential pillar of the digital economy in general.” The Governor of the Central Bank affirmed that “the government is moving to diversify production to advance the banking sector and financial policy, and it is developing programs to reach the goal and taking into account the international, regional and local conditions - which are the keys to dealing with and presenting programs and plans that are compatible with all these conditions - and there is diversification and strengthening of the national economy.” In order for the banking sector to be active when there is a diversified production base,” Al-Alaq acknowledged, “We as a country suffer from the fact that the main economic activity is the oil sector, and what is linked to the transformation of oil resources into a sector trade primarily instead of employing it locally to serve development goals and diversify the production base, and this calls for the necessity of activating the banking sector by providing the necessary financing to establish real projects in the basic economic sectors, especially in the industrial and agricultural sectors and other sectors,” indicating that “this approach will lead to Alleviating dependence on oil resources, as well as providing means of real employment and growth.”
