Iraq's external public debt has decreased to $20 billion, al-Kadhimi’s advisor says

politics/Economy

13-11-2021, 11:34

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Baghdad-INA

The Prime Minister’s Adviser for Financial Affairs, Mudher Mohammad Saleh, announced today, Saturday, that the country’s external public debt has decreased to $20 billion , while stressing that the year 2022 will be free of financial hardships and financing restrictions.

Saleh told the Iraqi News Agency (INA): "Iraq's external public debt is decreasing, and it is around 20 billion dollars, and the public budget bears the debt-extinguishing according to set timings," noting that "the internal debt is still the largest at the present time, as it exceeds the external debt three times.”

Saleh continued "Iraq is in recovery and will inevitably live in the next year 2022 without financial hardships or funding constraints, caused by a lack of revenues, due to the recovery of the energy market and the rise in demand for oil, as well as the increase in the proceeds of Iraq's oil production by 400 thousand barrels per day," noting that "" This addition to the current total oil production and alone will generate an annual added revenue estimated at about 17 trillion Iraqi dinars if if the average price per barrel of oil is $75".

He also elaborated that "The subject depends on the total budget expenditure ceilings, and if it is assumed that the expenditure ceiling in the 2022 budget is the same in 2021, and that the average price of a barrel of oil achieved throughout the year is not less than $75, then the oil revenues will alone cover the total budget expenditures and achieve some surplus of other non-oil revenues".

Saleh added, "This means that, for the first time, there will be a budget that achieves a financial surplus without the need to borrow, and if borrowing is achieved, it does not exceed 3% of the gross domestic product, which is stipulated in the Financial Management Act in force due to ongoing construction projects whose financing is linked to international loans," he pointed out that "According to my estimation, it does not exceed 3 billion dollars a year, in addition to the construction loan whose bonds are offered for circulation to the public at a trillion dinars".