Al-Kazemi’s advisor reveals the three-year debts as part of the repayment strategy
Economie Today, 21:19
Baghdad - INA - Nassar Al-Hajj
, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined, today, Wednesday, the strategy for paying off external and internal debts, while revealing the value of Iraq's public debt.
Saleh told the Iraqi News Agency (INA), that "the maximum limits for the internal public debt are approximately 70 trillion dinars, or the equivalent in foreign currency of 48 billion dollars,
which are the debts imposed by the circumstances and conditions of two successive double crises that affected the national economy and in close periods."
He added, "The first crisis is the financial and security double during the years 2014-2017 due to the war on ISIS terrorism and the liberation of cities,
accompanied by the decline in oil prices and the weakness of financial flows to the public budget due to the intensification of government spending in that compelling circumstance."
The other is the dual crisis (financial and health). ) that hit the country throughout the year 2020,
the global economy closed due to the Corona pandemic, the decline in oil prices, and the deterioration of the country’s oil revenues by 40% from their rates in 2019, which forced the House of Representatives to issue two borrowing laws in the year 2020.”
He pointed out that “in light of what In advance, the strategy of extinguishing the internal debts goes to repaying the government’s debt instruments held by the government banking system, which is the body that currently holds about 98% of that debt, which is represented by treasury transfers, maturing for only one year, and bearing an annual interest on average of 3% for various issues..
And Saleh continued, "The debt repayment was postponed for many years due to the high financial deficit at the time, and the annual interest on it was satisfied by the public finances," noting that
"the strategy of extinguishing the internal debts that was approved will be able to extinguish the internal debt during the period 2022 to 2044, [misprint? 2024?]
which will enable banks to The government’s commercial efforts to support the elements of its liquidity and raise the value of its investments, as well as sending a good signal of high coordination between the monetary and financial policies, because
the Central Bank of Iraq is the highest holder of public debt instruments (treasury transfers issued by the Ministry of Finance) by accepting its deduction based on the banks’ desire (to liquidate them).
This is within the scope of open market operations.
Cabinet spokesman Hassan Nazim had confirmed earlier that the Cabinet had voted on a strategy to pay off foreign and domestic debts for the years 2022-2024.
Nazim said in the weekly press conference of the Council of Ministers, which was attended by the correspondent of the Iraqi News Agency (INA), that "the Council of Ministers voted on a strategy to pay off foreign and domestic debts for the years 2022-2024," adding that
"the vote on the repayment of foreign and domestic debts came as a result of high oil prices.".