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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Baghdad has a debt of 55 billion dollars and there are economic assurances about its repayment: its

    Rocky
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    Baghdad has a debt of 55 billion dollars and there are economic assurances about its repayment: its  Empty Baghdad has a debt of 55 billion dollars and there are economic assurances about its repayment: its

    Post by Rocky Sun 14 Jan 2024, 4:05 am

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    [size=52]Baghdad has a debt of 55 billion dollars and there are economic assurances about its repayment: its rise contributes to an increase in inflation[/size]

    [size=45]Baghdad/ Haider Hisham[/size]
    [size=45]The Iraqi economy was exposed to shocks during previous years, which prompted the government to resort to a borrowing policy, which pushed the state’s internal debt to rise to more than 70 trillion dinars. At a time when the government’s financial advisor pointed to the real reasons that led to reaching such levels of debt, Economists explained the impact of these debts on the state budget.[/size]
    [size=45]According to the latest statistics of the Central Bank, which was conducted in the sixth month of 2023, Iraq’s foreign currency reserves reached their highest levels in the financial history of Iraq and rose to 111 billion dollars.[/size]
    [size=45]The financial advisor to the Prime Minister, Mazhar Salih, calculated the size of the Iraqi government’s internal debt, and while revealing the reasons for the accumulation of this debt, he referred to the debt amortization mechanism.[/size]
    [size=45]Saleh said, in an interview with (Al-Mada), that “the internal public debt in Iraq is estimated at approximately 55 billion dollars, that is, approximately 73 trillion dinars,” indicating that “the accumulation of this debt with the Iraqi state came as a result of two shocks to which the country’s economy was exposed between the years 2014.” – 2021.”[/size]
    [size=45]He adds, “The first shock was financial and security, following the country’s exposure to the threat of ISIS terrorist gangs, in addition to the war in which Iraq won against ISIS terrorism, which at that time required financing the budget deficit; Due to the growing military expenditures and the sharp decline in oil prices.”[/size]
    [size=45]The Sudanese financial advisor points out, “The second shock, which was financial-health, was the result of the Corona pandemic crisis and the decline in oil price revenues at the same time; Due to the severe cycle of oil assets, the loss of a barrel of oil in both shocks amounted to approximately 40% of its estimated revenues as revenue to the general budget.”[/size]
    [size=45]“Based on the above, the financial authority in Iraq has resorted to borrowing from the government banking market, mostly by issuing treasury bonds or annual treasury transfers that carry an average interest of about 3%,” according to Saleh.[/size]
    [size=45]He continues: “Despite the above, this debt today constitutes only 27% of the gross domestic product,” indicating that “the Central Bank has discounted most of these internal debts by purchasing them from banks, at a rate of up to 65% of the total internal debt, and it is now an integral part.” From the investment portfolio of the monetary authority.”[/size]
    [size=45]The advisor notes, “The internal public debt has been traded exclusively within the government financial system, without the intervention of the banking market except in a very limited manner. That is, the internal debt, with its tools represented by bonds and treasury transfers, is traded at a rate of 95% exclusively within the government financial agencies.”[/size]
    [size=45]Regarding the debt extinguishment mechanism, Saleh explains, “There is a mechanism approved through the financial policy and the annual general budget that works to extinguish the debt and according to indicators of financial strengthening or discipline that leads to gradually reducing public debt in all its forms and an approved financial plan.”[/size]
    [size=45]Internal debt represents the money that the government borrows from individuals and institutions to face emergency situations, when public revenues are not sufficient to cover the public expenditures required by these emergency situations, such as war and severe inflation, to finance development projects, and to meet normal current expenses.[/size]
    [size=45]Most of these debts take the form of non-negotiable bonds, treasury bills for approximately three months, or negotiable bonds. The size of the state’s public debt is determined by calculating the percentage of public debt as a percentage of the size of the state’s domestic product.[/size]
    [size=45]In turn, economic affairs researcher, Ali Daadoush, explains the importance of paying internal debts by the Iraqi government, while pointing out the situation that could lead to an increase in these debts.[/size]
    [size=45]In an interview with Al Mada, Daoudesh stated, “There is no objection to paying or restructuring the internal debt by the government, especially if there is sufficient financial capacity as a result of the rise in oil prices in global markets, which has enhanced oil revenues.”[/size]
    [size=45]He points out, “The government, within its tripartite budget program, and the public-private partnership law, represent important points, especially the private sector will take the lead in the Iraqi economy in the coming years, which also motivates the Iraqi government to pay the internal debt.”[/size]
    [size=45]The researcher in the economic affairs continues, “Paying the internal debt will lead to the withdrawal of cash liquidity from circulation, which affects the monetary base and the money supply, that is, when the supply decreases, it directly leads to a decrease in the inflation rate, which represents the most important paragraph in financial and monetary policy.” He goes on to say, “The Iraqi government, at the present time, does not need debts, given that it allocated an oil price of $70 in the planning budget, and what is currently happening is that a barrel is sold for more than this price,” explaining that “stopping the Russian-Ukrainian war, in addition If the war in Gaza stops, it will lead to a decline in oil prices, and this is a dangerous indicator.”[/size]
    [size=45]Daadoush explains, “If oil revenues decrease, the government will resort to the Central Bank, by deducting central treasury transfers. To finance its expenses, this leads to an increase in internal debt.”[/size]
    [size=45]Iraq depends on oil for more than 95 percent of its revenues, while the federal budget law that covers the years from 2023 to 2025 is based on the assumption of $90 billion in annual oil revenues, although this number still leaves a large deficit, as $150 billion in annual spending is theoretically permitted[/size]
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