Al-Arabiya

  In Al-Arabiya

Negotiations between Iraq and the IMF to borrow $ 5 billion

The Parliamentary Finance Committee announced today, Monday, that the Iraqi Minister of Finance began negotiations with the International Monetary Fund to borrow $ 5 billion.

“The issue of internal and external borrowing will be brought up in Parliament on certain conditions,” said committee member Hanin Qadoo, noting that “the committee will present a paper of economic reforms to the government that includes not relying on single rents,” according to what was reported in the “Iraqi” news agency.

He stressed, “The need for an internal loan amounting to 15 trillion dinars in order to cover salaries and operating expenses,” noting that “the Minister of Finance began negotiating with the International Monetary Fund to borrow $ 5 billion, and it is hoped that it will be allocated for the benefit of investment.”

Qaddo called on the government to control customs and border outlets, focus its program on the private sector, diversify financial resources to reach safety and not need to borrow.

The Parliamentary Finance Committee had confirmed earlier the government’s intention to submit a paper of radical reforms during the coming period, while referring to the details of the borrowing law.

“The Minister of Finance informed the Finance Committee that the government will present a paper of radical reforms that includes all economic and financial aspects,” said the committee’s rapporteur, Ahmed Al-Saffar.

He added that the Finance Committee discussed government borrowing for the purpose of financing the deficit and paying salaries.

He continued, “The text of the borrowing law indicates that the government is allowed to borrow abroad at $ 5 billion, and the internal 15 trillion dinars from Iraqi banks for two months,” noting that “the vote on the law was postponed after talking about deductions in salaries.”

The House of Representatives finished the second reading of the draft of the domestic and foreign borrowing law to finance the fiscal deficit for the year 2020, and the Cabinet agreed to re-prioritize spending items in line with the financial and economic reform adopted by the Iraqi government. Source