Iraqi Government should Stop External Borrowing: Integrity Bloc

The Iraqi Parliamentary Integrity bloc expressed their feelings and objection on the continuous external borrowing. The Iraqi government is using foreign loan as a major source to overcome the deficit problems in the Iraqi federal budget 2017. The integrity bloc stressed the government to review the borrowing policy and lack of seriousness regarding the future plans of borrowing. The chairman of the integrity bloc, Ammar Tohme issued a press statement that “we repeat our resistance against the continuous external borrowing and considering it as the major source to manage the deficit issues in the Iraqi federal budget 2017. Point to be noted that current Iraqi government has borrowed a huge amount from international financial institutions, especially from the World Bank and the IMF. The major reason behind the massive amount of foreign loans has been considered a significant amount of decline in the global oil prices. Though, the oil prices are showing a positive attitude an increasing remarkably since it was added in the Iraqi budget 2017.

Iraqi Government should Stop External Borrowing: Integrity BlocHe further indicated that our objection has been increased after the amount of external borrowing showed massive figures. He added that we have noticed that the British loan has been exceeded at 12 billion U.S dollars. The original borrowing need has indicated that the amount of non-existent premium mentioned in the current year’s finance projects are not exceeding from 500 million U.S dollars. He indicated that the rest of the borrowing amount would provide benefits in long future for a couple of years. The financial and economic issues were increased due to decline in the global oil price, but the government should develop other non-oil resources in order to decrease pressure on Iraqi budget 2017. The government should consider the justification and expenses on the priority basis and most essential needs should be at the top priority. He also pointed out that there is no need to get more external loans and Iraqi government should review its external borrowing policy in order to decrease burden on Iraq citizens.

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