Parliamentary services and the governorate of Baghdad suggest moving towards borrowing

[size=52]Parliamentary services and the governorate of Baghdad suggest moving towards borrowing[/size]

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 Baghdad: Wafaa Amer

The Parliamentary Services Committee and the Baghdad Governorate suggested relying on internal borrowing as an alternative solution to complete the implementation of large investment and service projects, in the event that the allocations were not launched by the concerned authorities.
Committee member Hassan Salem told Al-Sabah: “Borrowing is one of the methods of financing projects in light of the current financial crisis, whether it is internal or external, but the internal is the most appropriate solution in financing large projects.”
Salem warned that “external borrowing makes the country heavily indebted in a way that greatly drains the budget and makes a large part of it go to cover it.”
And he indicated that "the current trend, whether for Parliament or the executive bodies from ministries and institutions, tends to internal borrowing in financing projects."
Salem explained that "Parliament was very keen to support the internal borrowing file as an appropriate solution for financing projects, whether investment or service, according to accurate and discreet mechanisms in choosing the financing mechanism."
In the same context, the Governor of Baghdad, Engineer Muhammad Jaber Al-Atta, confirmed to “Al-Sabah” that “the governorate has large and strategic projects in different sectors of water, sewage and housing projects, and they can only be financed through borrowing.”
He stated that "the governorate did not specify a final mechanism for borrowing because the issue depends on the nature of each project and the size of its financing, as large projects are either referred to investment or financed through loans."
With regard to the budget for the development of the regions, the governor clarified that “it cannot finance large projects, and therefore borrowing represents the most appropriate alternative to stopping projects.”
The Minister of Planning Khaled Battal Al-Najm recently held a meeting with the Ministry of Finance to discuss the borrowing mechanisms currently in place and reconsider them in accordance with the economic and financial conditions in the country, in a way that ensures maximum benefit from loans, whether internal or external, in financing investment and service projects in a manner that does not constitute a burden on the national economy.
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