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Finance reveals the need for Iraq to borrow about $ 38 billion to cover the deficit

The Parliamentary Finance Committee revealed, today, Thursday, the amount of borrowing funds that the government needs to secure employee salaries and cover the levers in the general budget.

“The finance and planning ministers informed us during the committee meeting, yesterday, Wednesday, that the government needs $ 5 billion in external borrowing and 40 trillion dinars in internal borrowing (equivalent to about $ 38 billion),” the committee’s reporter, Deputy Ahmed Al-Saffar, told Shafaq News. It shall be from the Rafidain, Rashid, Real Estate and Central Bank banks.

He added that “approval of borrowing is subject to a condition,” noting that this condition requires the government after 60 days to present a reform paper regarding the provisions of the draft general budget bill.

And Al-Saffar said, “Deduction of part of the salaries of employees and retirees is not a solution, but resorting to borrowing is the best solution to get out of the financial crisis and secure salaries and fill the gap that exists in the public budget.”

And revealed the Parliamentary Finance Committee, earlier, the percentage of deficit “unprecedented” in the country’s general budget for the current year 2020, estimated at “69” trillion Iraqi dinars.

It is noteworthy that sending the federal budget by the government to the Iraqi parliament has been delayed due to the continuous protests since last October, which led to the resignation of the previous government headed by Adel Abdul-Mahdi and its transformation into a caretaker government that is not empowered to send the draft budget to the parliament. Source