[ltr]2023.01.15 - 15:14[/ltr]
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Baghdad - people
The appearance of Muhammad Salih, the financial advisor to the Prime Minister, confirmed, on Sunday, that the foreign reserves in Iraq are very high, while determining the total public debt.
Saleh said, in a statement to the official agency, followed by "NAS", (January 15, 2023), that "the internal public debt of the country is currently estimated at about $50 billion, the possession of which belongs entirely to the government banking system (i.e. debt within the government apparatus and not outside it)."
He added that "63% of the internal public debt is held by the Central Bank of Iraq and represents local assets in the structure of the central bank's balance sheet," noting that "the remainder of the internal debt is held by the three main government banks, with an annual interest of between 2-3%."
He pointed out that "the effective external debt that must be paid during the period from 2023 does not exceed 20 billion dollars, which means that the total public debt is estimated at about 70 billion dollars currently, and it constitutes only a percentage of 30% to 35% of the country's gross domestic product, which is a very safe percentage." Compared to the standard or international standard rate of 60%.
He continued, "The efficiency of the country's foreign reserves is very high and covers external debt liabilities by 5 times, which is a high and reassuring standard ratio and reflects the strength of Iraq's financial situation," noting that "the mechanism for repaying internal and external debts takes place through annual allocations approved in the federal budget."
And he continued, "Fiscal policy in Iraq tends to adopt the principle of financial discipline, which is based on gradually reducing the total accumulated public debt, offset by narrowing the annual deficit in the federal general budget and making the debt created when necessary within the standard ratios, so that the new public debt does not exceed 3% annually."
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