Development investment in loans


Economy News / Baghdad ...

Mohammed Abdul-Zahra al-Hindawi

Talk about the loan file carries a lot of worries and grief, especially after Iraq's transition from creditor nation to a debtor nation .. and today we groan under the weight of debt is back-breaking, as the data indicate that the amount of internal and external public debt exceeded 110 billion dollars, a figure astronomer probably accounts for (60 percent) of the amount of the total output.

The per capita share of the debt, according to the figures around 3000 dinars to 6000 dinars per capita share of GDP, and this percentage ignite the red light that we are we are now in the red Economic Zone, on the grounds that the amount of the debt exceeds by half the proportion in comparison with the total output.

How will we can fulfill this heavy financial obligations and our economy is still walking on one foot infected lameness as a result of excessive dependence on oil, which Maprah volatile in prices, down steps far from the levels during the price madness stage, which led to at us, the disease Alholnde.oma we entered into Iraq's debt depth and detail found divided into two internal and external debt, the danger lies in the external debt more.

Religion interior can be controlled by taking a range of measures and treatments that would solve the problem, as happened with dues Contractors resulting from their implementation of ongoing investment projects interrupted by the financial crisis resorted government to tear issuing bonds to pay off those of around 5 trillion dinars dues and so the rest of the debt.

The amount of external debt about 65 billion dollars, including 41 billion dollars of previous debts, mostly to the Gulf was the former regime had borrowed to sustain the momentum of the war with Iran, and therefore of bad debt that the Iraqi people did not benefit them in the developmental aspects of this religion precisely because they are so bad, the Gulf states did not call him so far so it was promise of outstanding debt, they are installed in the records without scheduling or annual interest Remember, this reduces to some extent the risk of public debt and makes GDP safe from Ktr.ouhan refer to the amount of external debt these figures are net debt after the write-off accounted for 80 percent of the debt within the framework of the Paris Club agreement in 2004 by which write off $ 100 billion. (This is what Saleh talked about during his interview on Sunday. - LOOP)

Aside from the size of the debt internally was or externally, the state continues to borrow from abroad, as well as internal debt, which is trying through which employees' salaries locked in some loss-making state-owned enterprises is, they are only the consumer and their number is not a little, the biggest problem and the most dangerous is that these debts large, mostly financial debt operational and not an investment, meaning that it is the debt of non-productive contrast entail annual benefits even if those benefits Mthaodh but ultimately Iraq must fulfill in one day, and that day is not far away, with respect to loans that have been obtained from the international Monetary Fund and some of the banks in 2020, which not only separates us from him three years will be the starting date for repayment of this debt is no room to resolve or postpone repayment. Here, let's turn our modern path to another destination, we say, that the religion that was not a product, it is a heavy burden on the economy, so it should give serious thought to guide foreign loans output towards development support that suffer a lot of structural imbalances, we need to vital projects in the agricultural sector and like the tourism sector as well as industry to guarantee at least a possibility to pay the benefits of those debts, by the other hand are taking steps toward activating the alternative development of oil sectors and to achieve sustainable development, which has become a target for the trends of the world all, the succeeded in making use of developmentally debt outputs of the process, we We will maintain the rights of future generations.

But it remains the most important question: Can we do without borrowing under the ongoing financial crisis and claims by the World Bank should be a package of reforms and financial, monetary and trade is to reduce overhead through the elimination of support for some of the services provided by the government, such as petroleum products and the ration card, as well as privatization of the public sector of transforming economic and governmental institutions to private institutions, and this has not been achieved for many reasons, as well as calling for trade liberalization to lift customs and administrative restrictions that would hinder movement of goods and capital, and in this particular partial some believe it has hurt the Iraqi economy and opened new horizons for the invasion of commodity cause condition serious exposure to the economy .. that is why a group of experts believes that the debt represent Tkpala economy, Belhaz that the current loan obtained by the country you go to meet the operating deficit in the budget, either as that earmarked for development and investment Flaakad little, or in other words, it loans is Productive.

The bottom line: The debt profile had become a major strain on the national economy and represents a threat to development not only in the present but will extend its effects to the future and therefore we need to procedures and treatments radical try from which to achieve two goals, the first possibility to stop borrowing, as it is not logical that an General Fund about $ 80 billion and we go to borrow 3 or $ 4 billion more harm than good ..

The second objective to initiate the implementation of funded economy projects can through what is achieved profits deduct a certain percentage of the debt repayment benefits, and so can we create real sustainable development to ensure the life of best for us and preserve the rights of future generations.