Iraq Economic News and Points to Ponder Thursday Afternoon 12-26-24
How Much Did Iraq’s Internal And External Debt Amount To? An Economic Expert Elaborates
Economy 2024-12-25 | Source: Alsumaria News 2,363 views Economist Nabil Jabbar Al-Tamimi’s chapter on the total Iraqi internal and external debt.
Al-Tamimi said in a statement to Al-Sumaria News, “The total Iraqi and foreign lending institutions external and internal debt amounted to approximately 96 trillion Iraqi dinars, of which 19.5 trillion dinars ($15 billion) are external debts, the majority of which are for the benefit of low-interest international.”
He added, "The remaining amount is approximately 77 trillion dinars of internal loans, most of which do not require repayment and are approximately 52 dinars for the benefit of the Central Bank, which financed the government in previous times through the issuance of cash through indirect financing methods via treasury transfers.
In other words, approximately 25 trillion dinars are due internal loans." Payment to commercial banks and national bonds, and the remaining 52 trillion dinars to the Central Bank.”
Regarding Iraq's most prominent external creditors, Al-Tamimi explained, "Iraq financing institutions borrows annually from international or foreign financing institutions, including the
German, British, and Japanese funds, and the
World Bank through the International Finance Corporation and the
Monetary Fund, as well as the remaining debts for the benefit of the countries in the
Paris Club and members outside the club associated with the legacy." The system before 2003.”
GDP
As for the ratio of debts to the Iraqi GDP, Al-Tamimi pointed out that “the Iraqi is estimated at 250 billion dollars, so the ratio of Iraq’s external debts to the GDP is approximately 6%, which is a low percentage, and the
percentage of total debts that must be repaid Excluding the Central Bank’s debts ($55 billion), 22% of GDP remains a reasonable percentage.”
As for the most prominent reasons for the accumulation of external and internal debts, he explained that “Iraq’s internal policies external debts are not considered large, and most of these loans were used to finance investment projects.
As for internal debts, the reason for their accumulation is due to Iraqi that financed much of the deficit through cash issuance, especially in “The years of war 2014-2016 and the year of the Corona epidemic in 2020.”
Al-Tamimi pointed out that “there are two types of other debts that were not included in the above calculations:
The first is the unofficial debts of the Gulf states linked to financing the Iran-Iraq war in the 1980s, which are estimated at $45 billion.
The second is the debts associated with the Iraqi-Chinese agreement, the details of which have not been revealed.” The economic expert concluded:
“External and internal debts do not pose any risks to Iraq, with the exception of loans and debts linked to the Iraqi-Chinese agreement.
The amount of interest on those debts or the guarantees provided is not known.”
https://www.alsumaria.tv/news/economy/510765/كم-بلغت-ديون-العراق-الداخلية-والخارجية؟-خبير-اقتصادي-يفصل
External And Internal Debts Do Not Pose Any Risks To Iraq... Except For One
Economy | Today, 23:33 | Baghdad today – Baghdad The specialist in financial and economic affairs, Nabil Jabbar Al-Tamimi, confirmed today, Wednesday (December 25, 2024), that external and internal debts do not pose any risks to Iraq. Al-Tamimi told "Baghdad Today",
"The total external and internal debt of Iraq amounted to approximately 96 trillion Iraqi dinars, of which 19.5 trillion dinars ($15 billion) are external debts,
the majority of which are for the benefit of low-interest international and foreign lending institutions, and the remainder is approximately 77 trillion dinars in loans.
" Internal, most of which do not require payment and are around 52% for the benefit of the Central Bank, which financed the government in previous times through the issuance of cash through indirect financing methods via transfers. "Treasury." He stated,
"In other words, approximately 25 trillion dinars are internal loans payable in favor of commercial banks and national bonds, and
the remaining 52 trillion dinars are in favor of the Central Bank." The specialist in financial and economic affairs added,
"External and internal debts do not pose any risks to Iraq, with the exception of loans and debts related to the Iraqi-Chinese agreement.
The amount of interest on those debts or the guarantees provided is not known."
Foreign debts constituted a huge burden on Iraq's finances for decades, and it began paying billions of dollars to a number of countries and organizations around the world as a result of the senseless wars fought by the former regime.
Today, under the government of Prime Minister Muhammad Shia al-Sudani,
the country began to breathe a sigh of relief after getting rid of the largest amount of foreign debts.
https://baghdadtoday.news/264654-الديون-الخارجية-والداخلية-لا-تشكل-أي-مخاطر-على-العراق.-باستثناء-واحدة.html
Economic: Amending Article 12 Affects Basra’s Share Of Petrodollars
December 25 19:34 Information/private.. Economic expert Abdul Rahman Al-Mashhadani confirmed today, Wednesday, that
amending Article 12 of the Budget Law related to the costs of producing and exporting the Kurdistan region’s oil affects Basra Governorate’s share of the petrodollar.
Al-Mashhadani said in an interview with the “Al-Ma’louma” Agency,
“Each oil well in Iraq has different production and transportation costs, and the evidence is in the licensing rounds, where the companies’ profits ranged from one to two dollars per barrel extracted from the southern fields, while the Angolan company profited from the fields.” Qayyarah in Nineveh is $6 for extracting one barrel,” indicating that
“estimating the cost of producing oil in the Kurdistan region within the amendment to Article 12 of the Budget Law is subject to By handing over the fields to SOMO Company for calculation estimation.” He added,
"There is an objection from the representatives of Basra to this matter, considering that there will be discrimination in the governorate's rights because the share of petrodollars for each barrel will be at its expense," indicating that
"it is normal for discussions about this matter to take time, and the delay in approving the general budget for the year 2025 will not affect... Project implementation.
It is noteworthy that Parliament has been witnessing an ongoing debate for months about amending Article 12 of the General Budget Law, which relates to the costs of oil production in the fields of the Kurdistan region, while Erbil seeks to limit the amendment in a way that does not lose control over the oil file in the region. https://almaalomah.me/news/86388/economy/اقتصادي:-تعديل-المادة-12-يؤثر-على-حصة-البصرة-من-البترودولار
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