Al-Fahdawi: Iraq does not need Gulf loans and its economy is collapsing, but it will recover.
On Thursday, Muhammad al-Fahdawi, a leader in the Azm Alliance, revealed that the Gulf states refused to lend to Iraq due to the lack of political guarantees because of the tense situation in the region resulting from the war with Iran and the closure of the Strait of Hormuz.
Al-Fahdawi told Al-Maalouma News Agency that “the weakness of the country’s financial management is behind its resorting to asking the Gulf states to support it financially, and all data indicates that the Iraqi economy will recover without the need to borrow from the Gulf states, which handed over the management of their countries’ affairs to the Trump administration, and that the economic crisis that the country is going through has not led to the collapse of its economy.”
He added that “the Gulf states stipulated guarantees from Iraq in order to lend to it and provide financial support to rescue its economy, which is burdened with debt due to weak financial management and its inability to address the economic crisis in a well-thought-out manner, away from the improvisations that destroyed the country’s economy.”
He explained that “the lending process is difficult in light of the current circumstances in the region resulting from the Zionist-American aggression against Iran, the closure of the Strait of Hormuz, and the cessation of oil exports outside of Iraq.”
He affirmed that “the Iraqi economy is not suffering from a major financial crisis domestically, but it is experiencing a shortage of liquidity,” ruling out the collapse of the Iraqi economy in the current period.
Almaalomah.me