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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    A skewed equation in Iraq: huge cash reserves and high debts

    Rocky
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    • Post n°1

    A skewed equation in Iraq: huge cash reserves and high debts Empty A skewed equation in Iraq: huge cash reserves and high debts

    Post by Rocky Wed 01 Nov 2023, 9:23 am

    [size=38]A skewed equation in Iraq: huge cash reserves and high debts[/size]


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    November 1, 2023[You must be registered and logged in to see this link.]
    Baghdad/Al-Masala Al-Hadath: Questions arise about the possibility of Iraq using its huge cash reserves, amounting to about 113 billion dollars, to pay off debts and get rid of the interest burdens owed on them.
    Last July, Deputy Governor of the Central Bank of Iraq, Ammar Khalaf, announced that foreign exchange reserves had risen to 113 billion dollars, while he confirmed that the volume of internal debt had risen to 70 trillion Iraqi dinars (about 47 billion dollars).
    Financial experts talk to Al-Masala that it is possible for Iraq to use its huge cash reserves, amounting to about 113 billion dollars, to pay off debts. These cash reserves represent more than double Iraq's public debt, which amounts to approximately $70 billion.
    There are several reasons for Iraq to pay off its debts, including debt interest, which represents a large burden on Iraq's general budget, amounting to about 10 billion dollars annually.
    High public debt and debt interest lead to a lowering of Iraq's credit rating, making it difficult for Iraq to obtain new loans on good terms.
    Economic academic Ali Daadoush explains, “The public debt is divided into two external parts amounting to approximately 13 billion dollars until the beginning of 2023, and these are paid on an ongoing basis and deducted from the oil revenues achieved as a result of the rise in oil prices above the price of a barrel of oil specified in the general budget.”
    Daadoush added in a press statement, “In addition to the presence of an external debt amounting to $5.8 billion, pre-2003 debt, and unaddressed debts outside the Paris Club amounting to about $40 billion, which have not been claimed by the Gulf states.”
    He continued, saying, “As for the internal debt, it has reached about 70 trillion dinars, of which 50 trillion are for the benefit of the Central Bank of Iraq, and these are rescheduled from time to time, with an interest determined by the government.”
    He believes that “the government’s hesitation not to pay the internal debt is a result of its many obligations towards investment and service projects within the government curriculum, especially since the size of the planned deficit in the general budget for the year 2023 amounted to about 64 trillion dinars, and this also prevents the government from paying the internal debt, which portends the existence of “Financial and economic problems facing the current government in the near future.”
    He pointed out that “an opportunity was available to pay off the internal debt before the Corona crisis, specifically during the period (2017-2019), during the achievement of financial abundance, but it was not paid as a result of the lack of a clear-cut plan, in addition to the failure of private banks and some parties that financed the internal debt to demand their debts.” Because it has high liquidity through which it can confront banking risks, if any.”
    Daadoush concluded by saying, “In general, the external debt is paid with continuous debt service, while the internal debt is paid only from time to time in very small amounts.”
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