Foreign loans in the budget.. A government advisor details their percentage and disbursement mechanism[You must be registered and logged in to see this link.] |Today, 15:[You must be registered and logged in to see this image.]
Baghdad today - Baghdad
Today, Tuesday, Mazhar Muhammad Salih, the financial advisor to the Prime Minister, clarified the percentage of foreign loans in the Federal Budget Law and the mechanism for disbursing them.
Salih told (Baghdad Today) that "foreign loans are for the purposes of investment projects and are limited in all cases and constitute only 20% of government investment spending in the 2023 budget, which constitutes 25% of total public spending."
He pointed out that "these loans are mostly old commitments and agreements that took place between Iraq and foreign institutions and governments, which stipulated the obligation to provide loans."
He pointed out that "withdrawals are made from it to the account of completing the implementation of investment projects annually and gradually, such as the Japanese government loan (JICA) or part of the American Export-Import Bank loan and others."
He emphasized that "these loans are mostly allocations in return for withdrawing the part allocated for the loan as financing, that is, to complete or implement government investment projects."
Earlier, the Parsec Consulting website quoted in a report on the economic advisor, Mazhar Muhammad Salih, as saying, “The Ministry of Finance maintains an external debt of $20 billion, which is owed to a group of creditors, and is expected to be amortized in 2028, in addition to $6 billion owed to the governments of Japan and the member states of the Union.” The European Union, which pledged to finance parts of the Iraq Development Program at the Madrid Donors Conference in 2003, however, these are long-term loans and have not yet matured.
He added that "Iraq has debts estimated at 116 billion dollars at the present time, although the country plans to repay 76 billion of the total," according to the report.