Experts: Iraqi foreign debt payment guaranteed by activating productive sectors and investment


Baghdad – follow up

After Iraq's internal and external debt exceeded the $159 billion as a result of the financial crisis and plummeting oil prices have made the Iraqi economy is on the verge of collapse as borrowed funds go to the operational budget and investment, are born great economic circles concerns the possibilities of future economic problems in the country if their claim to creditors

Economic Affairs specialists believes that oil prices will recover and resume rising in the shadow of the problems in the region and the world as a number of experts predicted oil price of $60 for the next period

Under the expected increases in oil prices had specialists that Iraq needs at least 30 or 40 years to pay off his debts, internal and external

The parliamentary Finance Committee, says that Iraq adopted a policy of borrowing in financial affairs stroll, this policy is a solution to the country's temporary financial problems and if followed will lead to inevitable problems on the economy to be borne by future generations.

A member of the Committee mp Ahmad Haji in interview: Iraqi economic growth so weak in dependence on oil, which is long and a big drop in prices, and that threatens the Iraqi Government not to rely on borrowing, but think of new sources of financing through activating productive sectors and investment in the country.

He added that Iraq owes to several different entities including banks of internal and international banks as well as compensation to States such as Kuwait, where Gulf compensation 40 billion and 700 million dollars, these all need a long repayment ranging from 30 to 40 years in the event of an improvement in oil prices and the recovery of the Iraqi economy.

Meanwhile, Economist Greg just download the current Government and previous Governments for the country is going through major financial crisis pushed the country to rely on borrowing.

Greg said in an interview: it's almost 3 years ago oil was sold more than $110 a barrel, wondering where the money was going in the absence of services and electricity and low standard of living of citizens.

The Economist called regulators and body integrity responsible in previous Governments and questioned them about the money spent in vain and benefit to the country

The parliamentary Economic Committee, revealed earlier on foreign loans and debts incurred on Iraq, while the country's ability to pay that money.

Answer truthfully, Committee member Najib said in a press statement: that the foreign debt inherited from the previous regime and the Iraqi Government for the Paris Club countries, adding to the estimated war reparations Kuwait totalling 13 billion dollars.

He added that the indebtedness of the objects by Iraq dedicated to foreign investment companies debt, plus business estimated at 45 billion dinars

She answer given that total loans to Iraq by Japan are estimated at around six billion dollars, as well as the World Bank and the International Monetary Fund loans and u.s. estimates some 70 billion dollars in all

And I followed the Iraqi Government Economic Committee member unable to pay that money and pay interest on those loans and foreign debt

Member of the Finance Committee Jabbar Abadi reporters earlier that Iraq succeeded in overcoming the global economic crisis that accompanied the collapse of international prices of oil market

Abadi said that economic conditions have improved from what it was in the past, the Government provided salaries for employees and retirees and social protection when price was at its lowest levels capable of that now in conjunction with the marked improvement of the oil market

He noted that international experts expect continued oil price and exceeded $60 during the next two years and is a good indicator for Iraq and achieves a kind of détente in financial distress

But in return for that sees beyond the current budget deficit of only the arrival of Iraqi oil to 60 dollars, that barrel Brent least cost about $65

Member of the parliamentary Finance Committee has ruled that the Government resorted to changes on the current budget deficit rates because the bypass is the only way to submit a supplementary budget to Parliament for approval, is impossible under present conditions

Abbadi completed by saying that economic conditions in Iraq are improving, that the current budget will continue to run until the end of this year in accordance with sections that spoke of texts

For her part, despite the slight improvement in oil prices, other Committee member Magda Tamimi spoke in a press statement on the financial and economic challenges facing Iraq in the next phase.

Tamimi said that Iraq's oil prices to align with what was put in the budget at a rate of $42 per barrel

Abbadi agreed with the need to provide not supplementary budget because they involve more expenses, asserting that Iraq needs to compress and reconsideration of unnecessary expenses

Tamimi followed that a future Government to meet internal and external debt, including the imposition of conditions the IMF and the World Bank to reduce staff salaries and retirees, revealing that Iraq's debt of more than 100 domestic and international billion dollars.

Member of the parliamentary Finance Committee rejects any tampering with these segments, indicating that the Government must take all measures to counter the present juncture

Tamimi was that continued spending, oil prices did not meet the level of ambition, even if the file is over the war against the terrorist organization of ISIS, we have allocated funds for the reconstruction of the devastated areas.