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Parliamentary criticizes the option of external borrowing: We need Iraqi dinars, not foreign currencies

The Deputy for the Block of Walkers, Inaam Al-Khuzai, called on Thursday, Prime Minister Mustafa Al-Kazemi, to avoid external borrowing, pointing out that financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget.

Al-Khuza’i said, in a message addressed to al-Kazemi, which NAS received a copy of (June 4, 2020). The reasons for the external borrowing law are the decline in oil prices, and this decline is not surprising, and Iraq has been living with it for years due to the fluctuations of oil prices, both low and high. She added, “Consequently, there is no need to mortgage the country’s economic and financial resources abroad due to the volatility of oil prices, especially since prices are experiencing a tangible recovery after touching the $ 40 per barrel barrier recently due to the commitment of major oil producers to control production and start global economic activity in coexistence with the Corona pandemic and gradually move the economic sectors.”

Al-Khuza’i explained, “The second reason for abandoning external borrowing is that the budget does not need cash (in foreign currency). Rather, there is a need for (Iraqi dinars) to bridge the financing gap until prices recover and maximize other government’s financial resources,” noting that, “The government directs External borrowing depends on Iraq’s fate to international wills and a serious threat to its political, economic and social security, and instead, internal borrowing should be approved by tracking the financial flows flowing from Iraqi banks (Rafidain and Rashid and the Iraqi Trade Bank) and other private banks, and the central bank will support these banks as It happened in 2016 and 2017.

The representative pointed out that “financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget, until oil prices improve and pay off all domestic obligations and debts without harming the sovereignty and political and economic future of Iraq,” stressing, “The government’s need to maximize revenue Non-oil, eliminating pockets of corruption, waste ports in state resources, such as border ports and huge revenues, real estate of the looted country, opening a file (debts owed by communication companies), and Iraqi money abroad, and other abundant financial resources, not immediately resorting to easy solutions ( External borrowing) and risking the future of the country and the citizen. Source