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Inter behind stop foreign bonds reasons
10/13/2015 0:00
BAGHDAD Shaima Rashid
pointed out among a representative, that for many reasons, forced the Finance Ministry to stop issuing foreign bonds, including «public pressure, and the rejection of the finance committee in Parliament this trend, as well as criticism of the religious authority of this scheme because it costs Iraq's large debts».
Member of the Finance Committee Hossam punitive, explained that holding the Ministry of Finance to cancel the foreign debt was based on the rejection of his committee with all its members, external borrowing, calling to continue the policy of austerity until they find alternatives to oil revenues.
He said punitive in a statement »Sabah» yesterday: «reject this approach, came as a result of the high interest of the bonds, especially as the amount is not worth it. Has been reporting and Minister of Finance so during the last host to him in the Committee », stressing that his committee supports the austerity adopted by the government policy.
It is said that Iraq is suffering a severe financial crisis due to the decline in oil revenues, and rising war bill against al« Daash »terrorist, called for the government to hold meetings last month, continued throughout the week with investors from Europe and the United States in an effort to promote a version that did not see the light at the end of the day.
MP punitive, also pointed out that «foreign bonds, completely rejected either internal bonds will be issued, according to the State's need».
Revealed Financial legislator that «revenue up to the Ministry of Finance of oil and non-oil revenues would be distributed according to priority and the need for ministries», adding that «this thing applies to provincial quotas, many of which did not receive their shares because of the lack of revenue».
He invited the representative bloc « Liberal »the Commission, the government and the Finance Ministry that« the exchange in the next budget, as in the current year's budget in order of priority and the need for each ministry and by monthly for control of the deficit and the lack of height ».
It is sure to be public pressure and protests continued in the capital Baghdad and the most the cities of central and south of the country, another reason for the cancellation of external bond issuance plans, where loud banners claim not to mortgage the future of the country's debt.
and arrived pressure in the past few days to the Supreme religious authority in Najaf, which demanded publicly last Friday not to issue such bonds.
In effect among other reasons mentioned above, the Ministry of Finance suspended its plan to issue international bonds, attributed the reason to the fact that «the yield to be paid will be very high», according to Deputy Finance Minister Fadhil Nabi.
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