September 19, 2015
Warnings of the continuation of payment of one billion and 200 million dollars a year the benefits of external debt
BAGHDAD - just Kazem
Parliamentary Finance Committee revealed that the Iraqi securities offered for sale volume reached $ 12 billion for the oil ministry, noting that Iraq pay the interest on their foreign loans worth one billion and 200 million dollars a year, while a legal expert said that the country borrow from the international community banks high interest and not Governments and describe the next phase Balassabp.
The committee member said Ahmed Rashid (time) yesterday that (amount of money to the Iraqi bonds offered for sale in the Iraqi bank VTB any amounted to $ 12 billion for the Ministry of Oil and is limited circulation of about 20 years and is now trading between the four markets, notably the international market of government and private banks) . He added that the (oil ministry resorted to this measure because of its need for funds for the purpose of payment of the oil companies and the lack of revenue and low Iraqi crude oil price).
He said Rachid (every economic step can only be taken to study the reality and for the reality of Iraq is clear features and took the sale of bonds as a means or one of the immediate revenue for the state, a double-edged sword, as the country's economy if picked up, the move will succeed and achieve their hopes and decreased economic level of the country, Iraq will stop investment and service projects and will continue to borrow to meet the employees' salaries only).
He pointed out that (for each credit balance of caveats you should know and Warning securities it the more loans decreased investment opportunities and increase the benefits of international loans, as happens now if that Iraq pays annually about one billion and 200 million dollars the benefits of previous loans are subject to increase).
He said that Rashid (Iraq borrowed from all the major foreign and Arab countries then turn poor countries, including Mozambique, which surprised the existence of documents signed and ready to lend to banks lend Iraq Mozembiqih amounts of great interest).
He said the (deficit in the last budget was very simple, but the gap widened during the current two years and the next, and if the situation continues as it is down the price of crude and the lack of revenue and the payment of debt and the benefits of Iraq, the next budget will be to fill just do not) employees' salaries.
For his part, he said the legal expert Tareq Harb (time) yesterday that the (financial step for the Government of the positive things and a lot of negative as the government should provide funds can not be secured for its people due to lower imports for the conduct of wheel administration to say the least, and not for investment or things of luxury).
He added that the (current borrowing from foreign countries or from the internal financial authorities is borrowing from future financial share of any future fiscal years for Iraq and pay interest loans precedent of this share), war and said that (with a strong relationship with the local economy actors told me that some of the foreign loans reached interest rate where to around 68 percent and this amount is fantastic and rise back to Iraq that borrows from international and local community banks and not governments so these banks do not give loans, but great) and the benefits of guarantees.
He pointed out that (oil exists and at a reasonable price and borrow money at 26 percent of the amount of the budget and the expected budget, which followed a borrowing where 50 percent and then for the worse, so the difficult issue because we will lose protection on our money as well as to Iraq at around four million employees and more of them are retired How will save money in the future).
Calling on the government to (feminine some places outside spending and make it locally, such as graduate students abroad who are studying law and engineering, as the per student cost the state 120 000 dollars a year for what this amounts to study the present we have locally and superior which must be limited missions on a non-existing studies internally as well as having Several embassies spend huge amounts of money in the countries we do not have anything to do with the politically and economically, such as Georgia State so on safeguarding their funds in various ways so as not to get into a dead end).
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