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KTFA
Clare » April 11th, 2024
Disclosure of Iraq’s creditors internally and externally
4/11/2023
An economic expert revealed the most prominent creditors of Iraq.
Salah Nouri, former director of the Financial Supervision Bureau, told Al-Furat News Agency, “The amount of declared external debt is approximate, because there are external debts in the form of investment projects such as building hospitals and schools, especially the Japanese International Agency. These have complex accounting treatments in order to record them in the Ministry’s records.” Finance.
He stated that “the most prominent creditors are the International Monetary Fund, the World Bank, German and Japanese foreign international agencies, and international Islamic development funds, and there are no debts to Arab countries after 2003.”
Nouri pointed out, “The settlements of external debts through the Paris Club Agreement have ended, and they are related to debts before 2003, and as far as I know there are no new consultations, and the remaining ones mostly belong to the Gulf countries.”
He explained, “As for internal debts, the creditors are government banks.” (Al-Iraqi Trading Company) TBI, Al-Rafidain, Al-Rasheed) in addition to the employees’ retirement fund, which is approximately 60 trillion Iraqi dinars.
On April 8, the Iraqi government announced a reduction in external public debt by more than 50%, bringing the debt down from $19.729 billion late. in 2022, to $15.976 billion in 2023, reaching approximately $8.9 billion in the current year.
Raghad Dakhham LINK
A government advisor announces the start of implementing the reform plan in government and private banks
4/11/2024 Baghdad
Adviser to the Prime Minister for Economic and Financial Affairs, Mazhar Muhammad Saleh, confirmed on Thursday that Prime Minister Muhammad Shiaa Al-Sudani is interested in reforming the course of the private and government banking system, while indicating the start of implementing the reform plan for government banks.
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Saleh said, in a statement reported by the official news agency and seen by Al-Iqtisad News, that “the banking market has a great division. For example, the capital of private banks, or their share of capital from the government, is about 78 percent, while the capital of government banks is 22 percent.”
He continued, “While government banks account for 85 percent of activities and assets, while private banking activity is 15 percent, so there are large disparities between private and government banks.”
He explained, “Private banks have almost coexisted on government allocations, whether through the window or by opening letters of guarantee for projects, meaning that any vibration exposes private banks to serious problems, so approximately 29 banks have been deprived of dealing in foreign currency.”
Saleh added, “Prime Minister Muhammad Shiaa Al-Sudani is very interested in reforming the course of the private and governmental banking system,” stressing that “there is a reform plan for government banks, and there is a foreign company that evaluates the banking work, its capital, and its functions until they are parallel to the work of international banks.”
He stated, “Private banks are facing a dilemma, especially after being deprived of trading in foreign currencies, even though they have coexisted with this issue. Therefore, the government is trying to create an internal environment that is supportive of them, and they need to correct their situations first.”
He went on to say: “The Prime Minister is correctly supportive of private banks, on the condition that these banks improve their course of work,” stressing that “there is a reform plan to correct the course of private banks that will be implemented soon.”
A government source revealed, the day before yesterday, Tuesday, that Prime Minister Muhammad Shiaa Al-Sudani issued a set of measures and steps to revitalize the private banking sector, while directing a study of the possibility of strengthening the needs of private bank branches abroad in foreign currency.
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The source told the Iraqi News Agency (WA): “Within the framework of the Iraqi government’s efforts to formulate a strategy that stimulates the activity of the private banking sector during the next stage, allowing it to engage more in efforts to diversify the economy and strengthen its foundations, Prime Minister Muhammad Shiaa Al-Sudani directed the adoption of a set of measures and steps in this regard.” The matter, including: –
1 – The Ministerial Council for the Economy studies the proposal to increase deposits of government institutions and the central government with private banks, enabling them to provide more banking operations and contribute to the development of various vital sectors and increase their ability to provide various financing services inside and outside Iraq.
2 – Support The Iraqi government and the Central Bank of Iraq to private Iraqi banks through foreign institutions and banks, taking into account the credit rating of each bank.
3- Study the possibility of enhancing the needs of private bank branches abroad in foreign currency for the purposes of financing foreign trade – the private sector and in accordance with the applicable contexts.
4- Establishing The Board of Directors of the Central Bank of Iraq to determine the contribution of foreign capital in Iraqi banks and evaluate the reality of the situation in a way that benefits the Iraqi economy and in accordance with what is stated in Banking Law No. 94 of 2004.
5- Participation of representatives of the private banking sector when discussing relevant issues in all state institutions, including Meetings of the Board of Directors of the Central Bank of Iraq.
6- Studying the reactivation of the financing initiative presented by the Central Bank of Iraq and in accordance with the contexts proposed by the Central Bank in this regard.
7- The Competition and Monopoly Affairs Council shall take the necessary measures under Law No. 14 of 2010 to prevent monopoly in banking services, provided that the Council shall submit reports to the Central Bank of Iraq and in coordination with it periodically and in accordance with the aforementioned law. LINK
Source: Dinar Recaps
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