A member of the representative economy warns of the collapse of the country's economy due to external borrowing
2020/08/15 12:23
Baghdad today - Baghdad
A member of the Parliamentary Economic Committee, Representative Ali Al-Lami, warned, Saturday (August 15, 2020), of the collapse of the country's economy due to external financial borrowing, while stressing that when governments resort to external borrowing, they commit a crime against the people, he said.
Al-Lami said in an interview with (Baghdad Today), that “successive governments resorting to foreign financial loans is a crime against the people and the country, due to its many negatives,” noting that “$ 5 billion was paid as interest on loans in the 2019 budget.”
He added, "The current government committed the same mistake and resorted to financial loans, which have no economic feasibility, and if the situation continues, it will lead to the collapse of the country's economy."
He pointed out that "the loans shackle us with financial benefits that accumulate year after year, although alternative solutions exist, by maximizing the financial resources available in Iraq."
On Thursday (June 25, 2020), the President of the Republic, Barham Salih, approved the law on domestic and foreign borrowing to finance the fiscal deficit, after the parliament voted on it.
A presidential statement received (Baghdad today) said, "The President of the Republic, Barham Salih, approved the domestic and foreign borrowing law to finance the fiscal deficit for the year 2020."
During his signing of the law, the President affirmed that "the approval comes to get out of the financial crisis that the country is going through in light of the outbreak of the Corona pandemic, and to finance the salaries of employees and retirees and the necessary government expenditures," stressing that "government spending must be rationalized at the current stage."
Saleh's approval came after the law reached the Presidency of the Republic from the House of Representatives, after what was voted on Wednesday (June 24, 2020).
The Presidency of the House of Representatives had published, earlier, the final version of the Borrow Law.
The law, which the House of Representatives voted affirmatively, included, "nine articles, which included authorizing the Minister of Finance, Ali Allawi, to borrow internally and externally, provided that a proportion of no less than (15%) of the loans be allocated to investment projects, and that the borrowing ceiling does not exceed $ 5 billion from External borrowing, and 15 trillion dinars of domestic borrowing.
According to the documents, loans and transfers are exempt from taxes and fees.
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