18:15 - 2023-02-15
Today, Wednesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined the total public debt of Iraq, while noting that extinguishing debts and paying them are subject to a tight financial program and regular timings.
Salih told the agency, "The internal debts of Iraq, which are exclusively in the possession of the government banking system, are estimated at about $55 billion if they are valued in foreign currency according to the new exchange rate," noting that "a percentage of no less than 63% of the internal public debt is in the possession of the Central Bank of Iraq, whether in the form of government bonds or treasury transfers.
He added, “The average annual interest on all of them is about 3% with the offer,” pointing out that “the external public debt that must be paid between the years 2023-2028 is estimated at 21-23 billion dollars, which means that the total internal and external indebtedness is 76 billion.” dollar".
He pointed out that "the total balance of public debt (internal and external) still does not exceed 35% of Iraq's gross domestic product, while international standard ratios allow up to 60% and consider it stable."
And he continued, "Based on the rules of discipline or fiscal reinforcement, the fiscal policy should reduce the total amount of public debt annually, as well as gradually reduce the annual deficit rate through rational management of public spending and maximizing total public revenues, especially non-oil revenues, the proportion of which should become About 20% of total public revenues in the budget instead of the current percentages that do not exceed 8%, according to what was stated in the ministerial curriculum of the government of Prime Minister Muhammad Shia'a al-Sudani.
He noted that "extinguishing and repaying debts are subject to a tight financial program and regular timing, especially external debt receivables through the allocations allocated in the general budget for debt extinguishment and services, which still indicates Iraq's high creditworthiness with international credit rating institutions and according to its data issued periodically since its adoption." from 2015 to the present.
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