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$21 billion is the size of Iraq’s external debt until 2028
Economical 01/18/2024
Baghdad: Haider Falih Al-Rubaie,
the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, suggested that
Iraq’s external debt until the year 2028 would not exceed the $21 billion barrier,
stressing that the country’s creditworthiness is at a high degree of sobriety and reliability, according to which Iraq will be placed in a stable rating. While
he pointed out that the accumulation of debt came as a result of the national economy being exposed to two shocks.
Despite the accumulation of internal and external debt, the Parliamentary Finance Committee reassured that there would be no financial deficit in the country’s budget for the current year 2024,
while specialists in economic affairs expressed their fear of the continued fluctuation of oil prices, hinting at the possibility that public revenues would be affected in the event of a decline. Global black gold prices. Saleh told “Al-Sabah”:
“The external debt that must be repaid until the year 2028 does not exceed, in my estimation, the barrier of 21 billion dollars,” indicating that
“the repayment mechanism is subject to the actual current or ongoing allocations allocated in the federal general budget on an annual basis to pay the debt dues.” The government advisor stressed that
“Iraq’s credit record, or credit worthiness, stands at a high degree of sobriety and reliability,
which is why international credit rating companies have placed Iraq at rank B of the stable category throughout the last ten years, due to its high financial credit and commitment to paying service dues.” his debts on an ongoing basis. During a previous press statement,
Saleh calculated the size of the country's internal debt, while confirming that the Iraqi economy had been exposed to "two shocks." Saleh said:
“The internal public debt in Iraq is estimated at approximately 55 billion dollars,” indicating that
“the accumulation of this debt came as a result of two shocks to which the country’s economy was exposed between the years 2014 - 2021.” He added,
"The first shock was financial-security, as a result of the country being exposed to the threat of ISIS terrorist gangs, in addition to the war in which Iraq won against ISIS terrorism, which at that time required financing the budget deficit, due to the growing military expenditures and the sharp decline in oil prices." Saleh pointed out that
“the second shock, which was financial-health, resulted from the Corona pandemic crisis and the decline in oil price revenues at the same time due to the sharp cycle of oil assets and the loss of a barrel of oil in both shocks of approximately 40% of its estimated revenues as revenues for the general budget,” noting that this
This prompted the financial authority in Iraq to borrow from the government banking market, mostly by issuing treasury bonds or annual treasury transfers bearing an average interest of about 3%. The advisor noted that
“the internal public debt was traded exclusively within the government financial system without the intervention of the banking market.” Except in a very limited manner, that is, 95% of internal debt, with its tools represented by bonds and treasury transfers, is traded exclusively within government financial agencies.”
In the midst of this, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, expected that there would be no financial deficit in the budget for the current year 2024,
indicating during a press interview followed by “Al-Sabah” that
“the government will submit amendments to the table of amounts, and these amendments are in the process of being completed and sent to the Finance Committee and will be studied there and approved.” It is decided by Parliament and is on its way to implementation.” Al-Kadhimi pointed out that
“last year’s budget, 2023, did not suffer from a deficit, but the current year’s budget, 2024, will not have a financial deficit, especially since oil prices are constantly increasing.”
Contrary to the previous opinion, economic affairs specialist, Ali Al-Defafi, believes that the worsening situation in the region may lead to a delay in the arrival of oil supplies to consuming countries, and
thus a decline in the financial revenues of some producing countries, expecting average oil prices to be stable between -75%. $80 for the current year. Al-Diffai stressed the
need to exploit the financial abundance achieved as a result of the increase in oil prices over the past two years,
to establish strategic projects and work to support the productive aspects that can contribute to supplementing the country’s financial budgets, especially the agricultural and industrial sectors,
praising, at the same time, the government’s economic moves in Supporting the private sector, which will contribute during the coming period to reviving many local industries that could block the way for imported products.
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Economical 01/18/2024
Baghdad: Haider Falih Al-Rubaie,
the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, suggested that
Iraq’s external debt until the year 2028 would not exceed the $21 billion barrier,
stressing that the country’s creditworthiness is at a high degree of sobriety and reliability, according to which Iraq will be placed in a stable rating. While
he pointed out that the accumulation of debt came as a result of the national economy being exposed to two shocks.
Despite the accumulation of internal and external debt, the Parliamentary Finance Committee reassured that there would be no financial deficit in the country’s budget for the current year 2024,
while specialists in economic affairs expressed their fear of the continued fluctuation of oil prices, hinting at the possibility that public revenues would be affected in the event of a decline. Global black gold prices. Saleh told “Al-Sabah”:
“The external debt that must be repaid until the year 2028 does not exceed, in my estimation, the barrier of 21 billion dollars,” indicating that
“the repayment mechanism is subject to the actual current or ongoing allocations allocated in the federal general budget on an annual basis to pay the debt dues.” The government advisor stressed that
“Iraq’s credit record, or credit worthiness, stands at a high degree of sobriety and reliability,
which is why international credit rating companies have placed Iraq at rank B of the stable category throughout the last ten years, due to its high financial credit and commitment to paying service dues.” his debts on an ongoing basis. During a previous press statement,
Saleh calculated the size of the country's internal debt, while confirming that the Iraqi economy had been exposed to "two shocks." Saleh said:
“The internal public debt in Iraq is estimated at approximately 55 billion dollars,” indicating that
“the accumulation of this debt came as a result of two shocks to which the country’s economy was exposed between the years 2014 - 2021.” He added,
"The first shock was financial-security, as a result of the country being exposed to the threat of ISIS terrorist gangs, in addition to the war in which Iraq won against ISIS terrorism, which at that time required financing the budget deficit, due to the growing military expenditures and the sharp decline in oil prices." Saleh pointed out that
“the second shock, which was financial-health, resulted from the Corona pandemic crisis and the decline in oil price revenues at the same time due to the sharp cycle of oil assets and the loss of a barrel of oil in both shocks of approximately 40% of its estimated revenues as revenues for the general budget,” noting that this
This prompted the financial authority in Iraq to borrow from the government banking market, mostly by issuing treasury bonds or annual treasury transfers bearing an average interest of about 3%. The advisor noted that
“the internal public debt was traded exclusively within the government financial system without the intervention of the banking market.” Except in a very limited manner, that is, 95% of internal debt, with its tools represented by bonds and treasury transfers, is traded exclusively within government financial agencies.”
In the midst of this, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, expected that there would be no financial deficit in the budget for the current year 2024,
indicating during a press interview followed by “Al-Sabah” that
“the government will submit amendments to the table of amounts, and these amendments are in the process of being completed and sent to the Finance Committee and will be studied there and approved.” It is decided by Parliament and is on its way to implementation.” Al-Kadhimi pointed out that
“last year’s budget, 2023, did not suffer from a deficit, but the current year’s budget, 2024, will not have a financial deficit, especially since oil prices are constantly increasing.”
Contrary to the previous opinion, economic affairs specialist, Ali Al-Defafi, believes that the worsening situation in the region may lead to a delay in the arrival of oil supplies to consuming countries, and
thus a decline in the financial revenues of some producing countries, expecting average oil prices to be stable between -75%. $80 for the current year. Al-Diffai stressed the
need to exploit the financial abundance achieved as a result of the increase in oil prices over the past two years,
to establish strategic projects and work to support the productive aspects that can contribute to supplementing the country’s financial budgets, especially the agricultural and industrial sectors,
praising, at the same time, the government’s economic moves in Supporting the private sector, which will contribute during the coming period to reviving many local industries that could block the way for imported products.
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