Finance: Government economic policies weaken the private sector
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Economy News - Baghdad
The Minister of Finance, Ali Allawi, announced that the government's economic policies over the past years have weakened the private sector, indicating that achieving economic and financial reforms requires 5 years, stressing that the economic reform paper will be presented in the middle of next month.
Allawi said in his speech during hosting the House of Representatives today and seen by "Economy News", that the economic reform program needs a long time to be presented because the economic situation in Iraq is going through a critical situation due to the repercussions of previous cumulative economic policies that passed on the Iraqi state since the 1950s in the last century until Now, especially the legislation of the Agrarian Reform Law and the decisions of the socialist package, in addition to the loss of the economic vision that weakened the private sector and made all resources in the hands of governments.
He pointed out that the current government suffers from a scarcity of funds that forced it to borrow internally and externally and cannot implement the presentation of the paper within the period specified by the law voted upon, noting that a specialized team has been formed with a cadre of 40 employees working continuously to work on preparing and presenting the required paper despite the circumstances. The current health system, indicating that the reasons for delaying its submission are technical and historical, setting the ceiling for the government’s submission of the first negotiable reform paper at the end of this month, while the reforms paper will be submitted in its final form in the middle of next month .
Minister Allawi pointed out that there are three types of loans, including commercial that the Iraqi government has moved away from, borrowing from governments and the third by borrowing from international development institutions such as the World Bank and the Arab Fund for the purpose of investment, especially those related to the requirements of improving the electricity sector by activating previous economic agreements with my company. Siemens and General Electric, stressing the importance of reviewing the exchange rate so that the Iraqi economy enters the cycle of competition with the interest of the International Monetary Fund in the issue of the exchange rate, noting that the ministry received an amount of 15 trillion dinars in full to meet the needs of salaries .
The Minister of Finance indicated that the need to borrow was to support the general budget and fill the financial deficit without giving support to investment projects, explaining that the tendency to borrow from the International Monetary Fund comes because it has specific programs supportive of countries suffering from financial crises such as Iraq with loans for a period of three years provided that they are linked With administrative and financial reforms, pointing out that the government opened communication channels with the International Monetary Fund because Iraq has no source for internal borrowing except the Central Bank of Iraq and the absence of accredited financial markets in Iraq, in addition to the fact that government banking institutions are saturated with debts to the government to finance the financial deficit in budgets and private banks are not It has a large financial financing .
The minister added that it takes 5 years to carry out concrete economic reforms by finding new alternatives for revenues, noting that the total debt represents 80 to 90 percent of the Iraqi national product, which amounts to 160 trillion dinars of foreign debt, including Kuwait and Saudi Arabia's debts amounting to 40 billion dollars, stating no The possibility of the Ministry of Finance to count the monetary mass in Iraq.