Iraq is approaching the resolution of the external debt profile

3/25/2017 0:00

Saudi Arabia after the declaration of its intention to cancel the debt

Baghdad / Mustafa al-Hashemi

At a time when Saudi Foreign Minister Adel al - Jubeir revealed his country 's intention to cancel the previous debt owed by Iraq and to improve bilateral economic relations, an economic researcher stressed the importance of closing the external debt profile and orientation towards a genuine and effective development of the LAPD.

A Foreign Ministry statement has said that the minister Ibrahim al - Jaafari met with his Saudi counterpart Adel al - Jubeir on the sidelines of the International Alliance meeting against "Daesh" in Washington DC, and discussed with him bilateral relations and the development witnessed during the last period, and ways to deepen, and open new horizons for joint cooperation in all fields .

The two sides agreed - according to the statement - the need for the exchange of visits between the two countries officials, including ministers of trade and industry during the coming period to increase the volume of trade and investment.

Jaafari stressed Iraq 's desire to establish better relations with the Kingdom of Saudi Arabia, pointing out that the country is still in need of financial support, and the reconstruction of the infrastructure of the Iraqi cities after its liberation from the grip of a fully "Daesh".

For his part , the Saudi foreign minister expressed satisfaction with the visit of the Iraqi delegation to Riyadh, describing it as good and came to activate the volume of cooperation between the two countries.

Jubeir revealed about his country 's intention to cancel the previous debt owed by Iraq, noting that his country seeks to open a flight route from Riyadh to Baghdad and Najaf in the context of strengthening bilateral relations between the two countries.

The cast amounts of external debt overshadowed the economic performance of Iraq in terms of its impact on public budgets, which led the accumulated debt, due to the events experienced by the country, the need to get rid of them for their access to the settlement of such debts as they have a clear impact in supporting economic development.

Economic researcher Firas Amer pointed out that the closure of the external debt profile, especially the Gulf ones, it has become a necessity required by the current stage in order to begin the process of real economic development as that those debts restrict the Iraqi economy and impose upon specific mechanisms for investment spending greatly affected the development of the country.

Amer saw the possibility of converting some other external debt to a long or medium - term investments after coordination and agreement with the creditor countries to do so.

According to the Saudi debt owed by Iraq, the sources of around $ 15 billion.

The classified Iraq 's foreign debt on 4 ratings which all of the countries of the Paris Club debt, the debt of non - member countries of the Paris Club, debt trade creditors (private sector foreign), the debt of the Gulf Cooperation Council ( GCC ) in addition to consultants contracts (accounting and legal).

It is said that Iraq 's foreign debt position, as announced by the Ministry of Finance years ago, shows that the total debt , which has been settled for the countries of the Paris Club was up to $ 51.6 billion in 2004 and became the end of 2012 up to 9.444 billion dollars.

As the total debt has been settled for countries outside the Paris Club was up to 18.33 billion dollars in 2004 and became up to 2.712 billion dollars in 2012, while total commercial debt processed up to $ 19 billion in 2004 amounted to become in 2012 (3.681) billion.