Iraq is heading to borrow from international institutions after failing to sell bonds
Iraq is heading to borrow from international institutions after failing to sell Treasury bonds
Iraq has dropped from the sale of foreign bonds worth 6 billion dollars due to the high interest rate imposed by the international financial institutions, which may be paid towards the path of external borrowing to fill the budgets of 2015 and 2016 deficit. And allow the budget in 2015, voted on by the House of Representatives earlier this year, the Ministry of Finance to borrow or issue of internal and external treasury bonds to cover the deficit, which exceeded 20%, due to lower oil prices. Fadel said the Prophet deputy finance minister, last Sunday, that Iraq "halted its plans to issue international bonds because the interest rate will be high." The Baghdad aims to raise about two billion dollars from an initial denominated in dollars version, part of a series versions were will reach six billion dollars. MP says Awad al-Awadi (range), "The government has been unsuccessful in the subject of the issuance of treasury bonds because there are fears of imposing significant benefits to Iraq."
He said al-Awadi, that "the government and the Finance Ministry Oiguenta that these bonds were dedicated operating budget and not for investment and thus there are no an urgent need to resort to it, "asserting that" the Federal Ministry of Finance felt that there was no risk of the insured employees' salaries originally from oil sales.
"In the opinion of the Committee on parliamentary power by that" recourse to external borrowing must be dedicated to the investment and project task is not that the government bears the burden of overburden placed upon it in the light of the economic conditions experienced by Iraq.
"turn says Abdul Qader Mohammed Omar, a member of the Parliamentary Finance Committee, said that" our committee meeting with the Minister of Finance was focused on external borrowing issue and sale of Treasury bonds and the money that would have on Iraq.
"He said Omar, in told (range), "The Minister of Finance Parliamentary Committee told not convinced his ministry's external borrowing, which calls for financial companies, banks and the banks of the benefits of up to 11.5% per annum," saying it was "the profits outweigh the gains in circulation and the usual in economic markets."
It is noteworthy member of the Finance Committee that "the specific borrowing within the budget year 2015 by 6 billion dollars in order to fill the current year's budget deficit."
In the same context, draws Attorney Sirhan Ahmed, a member of the Parliamentary Finance Committee, that "the bonds Sticky sale in the budget law is not entitled to the Ministry of Finance terminated only all the way back to the House of Representatives for a vote.
"He added Ahmed (range) that" the Finance Committee in the House of Representatives will discuss the implications of this issue and its details at length in the meeting which will be held tomorrow (today) Tuesday, "noting that" these bonds raised to bridge the fiscal deficit interest up to 12%. "He said Kurdish lawmaker to" directed the Federal Ministry of Finance to borrow from domestic banks and the International Monetary Fund in order to repay year's budget deficit in 2015 of $ 25 trillion Iraqi dinars. "He noted that" the Council of Ministers returned the draft budget to the Ministry of Finance For some amendments and additions made, "expected" and the arrival of law to the House of Representatives in a matter of ten days. "turn attribute Mohammed Emeritus, Economic Adviser to the House of Representatives, the reasons for the freezing of selling foreign bonds to" high interest, which will cost the Iraqi treasury large sums rate. "
He added Emeritus , told the (range), "The first batch of treasury bonds was worth two billion dollars," calling on the Ministry of Finance to "look for other sources to fill the coming budget deficit and is expected to reach 29 trillion dinars." indicates an economic advisor to the Board of episodes to " the existence of negotiations conducted by the Ministry of Finance with some international banks, financial companies and the International Monetary Fund and the World Bank in order to borrow to meet next year's budget deficit, "noting that" the Ministry of Finance has tours with these banks and companies to get the money to reduce the deficit in the budget of 2016 ". On the back Council of Ministers the draft 2016 budget to the Ministry of Finance, Emeritus says that this is due to "the government's efforts to reduce public spending and pressure ministries allocations as well as calculate the price of the barrel in order to reduce the size of the budget deficit next year." In the opinion Parliamentary Counsel that "the adoption of the price of a barrel of oil dollars to 45 ordered exaggerated and need to reconsider in line with the size of the economic challenges facing the world prices. "