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The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, announced that the total foreign debt owed by Iraq ranges between 23-25 billion dollars, indicating that 9 trillion dinars have been allocated in the 2021 budget as “debt services”.
The Iraqi News Agency quoted Saleh as saying that “Iraq's payable debts are those that were reduced by the Paris Club agreement and are called pre-1999 debts and debts achieved during the financial crisis and the war on ISIS terrorist gangs, including remnants of Kuwait's compensation, all ranging between 23-25 billion dollars. “.
On Iraq's compensation to Kuwait approved by the United Nations Compensation Committee formed in 1991, and set an amount of $ 52.4 billion, which Iraq pays to Kuwaiti individuals, companies and government agencies, which suffered losses due to the Saddam Hussein regime’s invasion of Kuwait, he explained that “the remnants of Iraq's compensation to Kuwait do not exceed two billion dollars. “.
The advisor to the prime minister pointed out that "the number related to the so-called debt service allocations, ie the annual interest and installments payable, was estimated in the federal general budget for the year 2021 at about 9 trillion dinars, which represents 7% of the total spending in the aforementioned general budget."
And he indicated that "this percentage is not allocated to external debts only, but most of it is allocated to internal debts, which amount to about 70 trillion dinars." By more than 60% of the total allocations for public or government debt service in the general budget 2021, and that they are payments from the government to the government.
In mid-April, Muhammad Salih indicated that Iraq's internal and external debts amount to 113 billion dollars, of which 40 billion dollars are debts pending in favor of 8 countries since the 1980s and 1990s, including Iran, Saudi Arabia, Qatar, the UAE and Kuwait, worth 40 billion dollars, and they refuse to write off their debts. Although she is a member of the Paris Club.
The Paris Club, a grouping of countries and global financial institutions, was founded in the 1950s, and its function is to provide financial loans to spare countries and entities the risk of bankruptcy.
And a number of countries affiliated with the Paris Club decided in 2004 to write off 80 percent of their debts owed by Iraq since the 1990s, and reduce those debts from $ 38.9 billion to $ 7.8 billion.
The value of the public debt owed by Iraq constitutes 49.1 percent of the country's GDP, estimated in 2020 at $ 230 billion.
During the past months, Iraq was suffering from a suffocating financial crisis that threatened the salaries of its employees, until the authorities decided, on December 20, to reduce the value of the dinar against the dollar to 1450 instead of 1184, to contain the crisis, but the decision caused stagnation in the economic movement and an increase in commodity prices in the markets. Local.
And on Wednesday (March 31, 2021), the Iraqi parliament voted on the Federal Budget Law for the Republic of Iraq for the year 2021 in general after months of heated debate over the law between political parties, with a total value of about $ 69.9 billion, calculated based on the export of crude oil on The basis is the price of $ 45 a barrel, and the rate of exporting three million and 250 thousand barrels per day.
On April 11, the Iraqi Prime Minister, Mustafa Al-Kazemi, said during his visit to Basra that the Central Bank’s foreign currency reserves rose to more than $ 60 billion, after it was 51.9 billion before the reform measures of this government began.
He attributed the increase to "the reform measures taken by the government after many bet on its failure and failure to continue," adding: "We have succeeded in stopping the waste and the great corruption in the notorious Central Bank auction, and we are proceeding with our measures and will not stop."
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