Parliamentary warnings of flooding the country with debt

Journal May 11, 2017

Baghdad - Journal News

The Committee on Economy and Investment parliamentary that the amounts borrowed by Iraq from the International Monetary Fund and the World Bank and some donor countries went mostly to pay Iraq's debt to other countries and to support the war on terrorism.

A member of the committee, Abdul Salam al-Maliki, told the "Journal News" on Thursday, that the size of debt in Iraq to neighboring countries, including the Kuwaiti side of about 119 billion dollars. "

He added that "the amounts received by Iraq, whether from the Paris Club or the World Bank or loans or donations that came through countries, including loans from Germany, Britain, Japan and the rest of the world amounted to 10 billion dollars."

"There is a financial constraint on Iraq, and debt can not rise more than this level because the country will sink into debts that are difficult to repay and there will be a severe financial and economic crisis," he said.

He explained that "despite the increase in Iraqi oil exports, but prices are still low compared to previous years, so most of the money did not spend in investment projects because the latter does not need loans, but funded by investors in the field of electric power, roads, bridges, hotels and markets and the rest Infrastructure fields ".

He stressed that "the cost of war on the duel and the US air strikes, which cost Iraq a lot of money, and the operating budget estimated at $ 15 billion in salaries for employees and the size of the budget of $ 72 billion."

He said that "the state has supported the projects completed by 90 percent of that amount go mostly to pay off internal and external debt, and there are layers of society that the government calls for entitlement, including contractors, investors and farmers."

Maliki called on the government to "not rely on the amounts obtained from oil as there must be a development movement through customs, taxes and fees to create new resources without relying on a single resource."