Undo the effects of debt on economic performance

Undo the effects of debt on economic performance       
 
 

10/12/13 12: 00 am


Government actions followed led to achieve
Baghdad-Mostafa Hashemi
Receiving the public debt overshadowed Iraq's economic performance in terms of its impact on public budgets, debt overhang, events experienced by the country, the need for after 2003 to freedom through the Ministry of Finance has contracted with foreign financial institutions to settle foreign debt because of their extensive experience and the effects of the creditor States and companies.
The definition of public debt

Economic academic Dr Majid Al said (morning) the public debt is divided into two types, external and internal, that is what the State's public agencies borrow from others to finance its work owing to the inability of its own resources to meet these business demands expenses, and that is a global phenomenon that is acceptable to a certain extent by specific controls, and if it is a problem but has aggravated the crisis lead to bad effects and significant risks to public and the national economy as a whole.

International consulting

The Government has contracted with 4 international banks and financial institutions as external consultants who provide advice, support and consultancy to all Iraq's foreign debt. They're both Ernst & young (accounting Advisor waltdkiki) responsible for the checking and matching foreign debt of Iraq and Cleary kotlob (outside counsel) and the French cooperation mission, alzard Foundation, support and coordination between the Finance Ministry and the Central Bank of Iraq and the Paris Club countries (18) State all his money with debt settlement because of its close relationship with the Club. Foundation English is Loki holihan financial advisor of the Ministry of finance is responsible for providing support to all States of the London Club debt settlement or (non-members of the Paris Club) and two city JP Morgan and Krupp were two of their mission to provide support to the Ministry of finance to debt settlement trade creditors (private sector) has been assigned the task to them due to the wide spread around the world, along with the large number of commercial creditors.

The Paris Club

He said that the foreign debt of Iraq's position, according to the Finance Ministry, shows that the total debt is settled for the Paris Club was up 51.6 billion US dollars in 2004 and the end of 2012 by 9 444 billion dollars. Refers to the total debt settled for countries outside the Paris Club was up 18.33 billion dollars in 2004 and by the end of last year, borders 2 712 billion dollars in commercial debt totaled processed right within 19 billion dollars in 2004 and the end of last year (3 681).

Instant financing

And the internal debt Division is developing a clear and effective strategy to provide funding when needed (through borrowing) based on law No. 95 of 2004 and directives issued under it no. 1 of 2004. The funding is the first version of the types of securities (allocate Treasury or Treasury bonds) through the issuance of two types of remittance voucher Treasury bonds registration system (GSRS) and for (182 days). And Treasury investment transfers issued for the purpose of financing investment projects (such as electricity and water transfer and transport). He noted that the second be funding process through direct lending and the loans made or granted to self-funded public companies to pay its personnel which are granted by the State banks as a Bank (and good).

Follow the religion

Economic researcher said Suhad virgins should follow domestic debt through debt Department in the Ministry of finance to repay internal borrowings the customizations needed in preparing the budget strategy for the payment of principal and interest through the preparation of correspondence to the Department of budget to inform the accounting service follow-up adjustments and disbursements. The (morning) set up tables on the size of the borrowing (through the issuance of money orders or direct loans) in addition to the annual payment tables and internal debt. The follow-up to the settlement of Iraq's foreign debt Department, external debt abradkhal all data adjusted with indebtedness and trade creditors. This is explained under bilateral agreements and the settlement offers in the database that were adopted by the DMFAS system and is an acronym for Debt Management and Financial Analysis System and financial analysis system and the debt management and financial reporting and the preparation of statistical guesses that the federal budget each year, and payments made to the Government of Iraq under bilateral agreements and the settlement offers (as a result of restructuring its debt) and in coordination with the departments of budget and accounting in addition to the Central Bank of Iraq.

Debt rating

She said Iraq's debt classified virgins on the 4 categories, are debts to Paris Club debt of States non-members of the Paris Club and commercial creditors (private sector), and the debt of GCC countries in addition to contracts for consultants (accounting and legal). M u j to the permanent of Yen trading Yen
(Private sector) debts were estimated at over 20 billion dollars and the hundreds spread out all over the world so I had to start searching for the best way to deal with them. The presentations were made to settle the debts of these creditors by offering a cash purchase, which included buying the debt of 10 $ 25 of the total debt and the abolition of the remaining 89 $ 75 percent, she has participated in the commercial creditors who offers less than $ 28,000 for 35 million total settled amounts to 5 billion dollars or debt buy view religion as guaranteed loan bonds by 20 percent of the total debt in favour of the creditor and the exemption for the remaining 80 percent and repayments of bonds The loan over the years 2020-2028 and calculated interest on bond loan 5 $ 80 percent took part in the presentation of adult trade creditors who are over their demands for $ 35 million. She concluded her talk by saying that the virgins total indebtedness settled under this offer amounted to around $ 14 billion.

 



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