Alforat News

Iraq is borrowing $5 billion from abroad

A member of the Finance Committee of the parliamentary, Hoshyar Abdullah, the arrival of Iraq’s foreign loans to five billion dollars.

Abdullah said in a statement received by the agency {Euphrates News} a copy of it, “The most important things agreed by the Committee in the financial budget for the year 2019 stop foreign borrowing and avoid dumping the Iraqi economy in the long and short term foreign debt.”

“We have a vision in the Finance Committee that continued foreign borrowing in 2019 is a big mistake to pay for future generations, there is no justification to borrow about $ 5 billion, while Iraq has a good cash reserve.”

He pointed out that “there are other mechanisms that can be resorted to as an alternative to borrowing, such as voluntary savings and revitalization of government banks by raising the interest rates for amounts deposited by individuals and companies, and seeking to increase local production and put restrictions on the import of the product can be provided locally, Such conditions are going through countries with an economy similar to the Iraqi economy. ”

Abdullah explained that “long and short term foreign loans have high benefits, and what was borrowed during the previous years is a serious strategic error,” noting that “the suspension of external loans in 2019 is a national step requires the support and support of the House of Representatives.” Source