Tuesday Afternoon Iraq Parliament News Highlights 9-27-22
The risk of delaying the budget threatens the flow of repayment of external and internal debts
Posted On2022-09-27 By Sotaliraq Baghdad / Hussein Hatem There are conflicting economic opinions regarding the mechanism for repaying Iraq’s internal and external debts, as specialists believe that delaying the 2022 budget will complicate the payment mechanism for a longer period. On the other hand, the budget delay is not related to the payment of debts, as it is scheduled within the 2021 budget.
There is a financial glut resulting from high oil prices. According to the latest official government statements, Iraq’s debt is divided into three types: internal, external, and long-term very concessional.
The internal public debt amounts to 50 billion dollars, and the Central Bank of Iraq still possesses 63% of the principal debt and its interests, and the annual interest ranges between 2 and 3%, and the rest of the internal debt is still in the possession of government commercial banks, which means that they are settlements within the financial system The government, exclusively, in the form of treasury transfers for a period of one year, the payment of which was postponed until the annual interest on it was paid from the annual allocations in the general budget, according to a government financial advisor.
As for the external public debt, it is twofold. The first is payable debt, amounting to 20 billion dollars, which is currently paid annually on a regular basis by the Ministry of Finance, and is expected to be repaid by 2028.
[size=45]As for the second part of the foreign debt, amounting to 40 billion dollars, it represents almost bad debts that the creditors did not claim under the terms of the Paris Club agreement for the year 2004 regarding the cancellation of 80% of Iraq’s foreign debts before 1990, and it dates back to the era of the former regime.
According to official government statements, the suspended external debt belongs to 8 countries, 4 of which are Gulf countries that loaned Iraq during its war with Iran, and it is considered in international norms as obnoxious or hateful debts because it financed the war and did not serve economic development, but it still appears in the accounts books of those countries It is expected to be written off 100%, without specifying a time.
As for the last part, which was detailed by the official figures, it is a very soft long-term debt related to the financing of development projects provided after 2003 according to the pledges of the Madrid Donor Conference in October 2003, and it is due to be paid after more than 20 years, and it is estimated at about $6 billion belonging to the Agency for International Economic Cooperation. Japan and some EU funds.
A member of the Parliamentary Finance Committee, Jamal Cougar, said in an interview with Al-Mada that “the payment of internal and external debts is proven in the 2021 budget.”
And Cougar continued, “If there are debts that are due to be paid, the delay in the 2022 budget will have an impact on it, as long-term amounts have not been allocated to it.”
A member of the Parliamentary Finance Committee added, “The rise in oil prices enabled the economy to restore its monetary activity, raise reserve rates, and pay large sums of debts owed internally and externally.
In turn, the rapporteur of the Finance Committee in the former parliament, Ahmed Al-Saffar, said in an interview with (Al-Mada), that “a large part of the debt was paid as a result of the financial abundance resulting from the rise in oil prices.”
Al-Saffar explained, “There is a debt scheduling that has nothing to do with the current year’s budget, since foreign debts are investment loans, and are not limited to one year,” adding, “This does not mean that delaying the budget does not affect, as its delay affects the joints of the state in general.” “.
The former deputy pointed out, “The internal debts are of unknown fate, due to the lack of transparency, and the failure of the Ministry of Finance to show its periodic reports related to the total revenues, expenditures and the remaining balance.”
And Al-Saffar, that “Iraq’s debts during the previous parliamentary session amounted to about 80 billion dollars, internally and externally.”
He pointed out that “the government is currently working according to the 1/12 system related to the 2021 budget, despite the approval of the Food Security and Development Law for emergency support,” noting that “the amounts allocated within the Food Security Law are still unknown, and there is no actual data showing the percentage of implementation this is the law”.
For his part, financial expert Safwan Qusay told Al-Mada that “the debt settlement process, especially long-term, requires the approval of a financial budget.”
Qusay added, “The absence of a budget means delaying the payment of debts for a longer time, especially foreign debts.”
The financial expert pointed out that “there is at least $20 billion in external debt, and at least $50 billion in internal debt.”
Qusay explained, “The internal debts can be settled in a quick way, through the Ministry of Finance’s transfer of those debts to the balances of the retirement fund and some Iraqi banks.”
For his part, constitutional law professor Wael Munther said in an interview with Al-Mada that “the payment of internal and external debts depends on the operational budget that falls within the general budget.”
Munther added, “The absence of the budget does not affect the payment of debts if the payments owed by Iraq are equal,” adding, “In this case, payment can be made according to the 1/12 mechanism.”
Iraq relies on more than 95% of crude oil exports to build the general budget annually, while the agricultural, industry, tourism and other sectors constitute only about 5% of the annual finance. LINK
Iraq Plans To Develop And Expand The Export Of Liquefied Gas Abroad
Energy Economy News – Baghdad The Basra Gas Company reported, on Tuesday, that the production of liquefied gas from Basra gas covers 80% of the local need and the surplus is exported abroad, at a time when the company is working on developing and expanding export quantities.
The Deputy Managing Director, Director of the Higher Production Authority, Marfa Al-Asadi, said, “The company continues to work in the production of liquefied gas used in cooking to meet the country’s needs,” noting that “the current production covers 80 percent of the local need, in addition to exporting the surplus 6 years ago.” Through the company’s Umm Qasr port,” according to the official “Al-Sabah” newspaper.
He added, “The company is seeking to update its plans to export liquefied gas abroad, as it has worked on developing its facilities and exporting semi-cooled gas (4 degrees Celsius), which contributed to the possibility of loading the product into ships with larger capacities that almost double the previously exported quantity.
It reaches 10,000 tons, which allows our product to reach farther markets and to have more tankers used for this material, after relying on exporting gas in small vessels with capacities ranging from 3,500 to 5,500 tons, depending on the type of ship. “.
Views 81 Added 09/27/2022 – 10:08 AM Update 09/27/2022 – 1:04 PM
https://economy-news.net/content.php?id=29920
Lebanon: We Are Waiting For The Remaining Fuel Shipments From Iraq And Are Seeking To Renew The Agreement
Energy Economy News _ Baghdad Today, Tuesday, Lebanon announced that it is awaiting the remaining shipments of fuel from Iraq within the contract concluded between the two parties, indicating that it seeks to renew the agreement.
The Minister of Energy and Water in the caretaker government, Walid Fayyad, said in press statements, “There are developments in the Iraqi fuel file, because of which the shipment of Iraqi fuel was delayed in reaching Lebanon,” noting that “we will have a virtual working session today with the Iraqi party to work on the issue of specifications.” .
And he added, “We will solve this problem with the Iraqi side after the meeting, to get back to getting the remaining Iraqi fuel shipments, which amount to 190,000 tons,” expressing hope that they will “arrive in the next two months.”
Al-Fayyad also indicated, “He will then issue the renewal of the agreement to obtain fuel with the Iraqis, and for this purpose we will visit Iraq, to discuss the renewal of the agreement to obtain an additional one million tons of fuel, which can provide between 3 and 4 hours of electricity supply per day, for a period of time.” year”.
Lebanon signed an agreement with Iraq in July 2021 to import one million tons of fuel fuel to alleviate the country’s electricity crisis, and the first ship arrived in Lebanon carrying 31,000 tons of this substance on September 16, 2021.
Fuel is a mixture of oils that remain in the oil refining unit after distillation (heavy fuel) and burn in a furnace or boiler to generate heat or to generate electrical or kinetic energy.
Iraq and Lebanon agreed on an energy exchange, under which Iraq would give Lebanon, which is going through the worst economic crisis in its history, heavy fuel oil, in exchange for “services and goods” that Iraq would get from Lebanon. 26 views Added 09/27/2022 – 10:06 AM Update 09/27/2022 – 1:01 PM
https://economy-news.net/content.php?id=29919
Masrour Barzani: We Will Continue To Implement Service Projects And The Battles Hinder The Reconstruction Of The Border Areas
Kurdistan Masrour Barzani za service projects
The Prime Minister of the Kurdistan Regional Government, Masrour Barzani, confirmed today, Tuesday, September 27, 2022, that the government will continue to implement service projects, noting at the same time that the ongoing battles between Turkish forces and the Kurdistan Workers Party (PKK) impede the reconstruction of the border areas.
Masrour Barzani’s speech came during his participation in the ceremony of laying the foundation stone for several service projects in the independent administration of Zakho.
Masrour Barzani said that “during the past year, many projects were implemented in the sectors of education, tourism, health and road construction,” adding that “Zakho was not previously serviced in the required manner, so its residents must be compensated.”
The Prime Minister added, “We have other future projects, such as the 60 Metric Street in Zakho, the Bativa District Hospital and the Industrial District in Zakho,” noting that “these projects will provide job opportunities for the people of Zakho and will be a means to develop the industrial sector throughout Kurdistan.”
He stressed that “Zakho is an important city and its people gave a large number of martyrs in the service of Kurdistan and its gains,” stressing that this region has commercial importance, linking Kurdistan through Turkey with Europe, and a large proportion of Kurdistan’s trade takes place through it.
He pointed out that “turning the streets and roads of Zakho into a highway aims to facilitate trade between Zakho and the Kurdish cities and link them abroad,” stressing that “it will be a great step to strengthen the economic infrastructure in Kurdistan.”
And he added, “A year ago, it was said that 60 percent of the roads and streets inside Zakho are unpaved,” stressing that “during this year, 30 percent of them have been completed and we will work to complete the rest.”
“The Zakho area is a very beautiful and comfortable city,” he added, but “unfortunately, because of the ongoing battles in the border areas in Zakho and its villages, we cannot rebuild and develop these areas.”
“We hope that the sovereignty of our country will be respected and that the battles in those areas will be ended so that their people can return to them and the government will be able to develop these areas and increase their economic development,” he added.
At the conclusion of his speech, Masrour Barzani revealed the government’s intention to build a dam for the Zakho region as one of the projects on the lists of the ninth cabinet in building dams within all regions of the region, and to provide support to farmers and to contribute to improving the climate and solving water problems that constitute a serious challenge.
Masrour Barzani: We will continue to implement service projects and the battles hinder the reconstruction LINK
