Economic Expert Malaz al-Amin said that Iraq's
repayment of foreign debts will take over 30 years, which would significantly
affect the economic situation of the country.
Iraq's need to restore infrastructure and establish factories, besides its former war against ISIS caused the country to suffer huge debts, Amin said.
Concerning the budget, Amin said it mainly depends on oil imports, which leads the government to borrow from the IMF and the World Bank with huge interests, adding that this may threaten the economy in case of oil prices fell.
Setting the oil price at $56 per barrel (pb) at the 2019 budget has damaged it, forcing the government to resort to foreign loans, Parliamentary Finance Committee member Ahmed Rashid said on Sunday.
Iraq now sells the barrel for $43, said Rashid, which caused an $18-billion deficit in the 2019 FY budget.
This shortage in expenses could only be covered by loans, therefore, Iraq was forced to take foreign loans to meet its own needs, Rashid said.
Iraqi lawmaker Laila Mahdi al-Tamimi stated earlier this week that the state budget has hit a serious deficit, as the 2019 FY budget deficit jumped to 113 percent.
Tamimi also criticized the government’s decision to set the oil price at $56 per barrel, as economic figures indicate a fall in prices, noting that "the government is justifying [the deficit] by borrowing from domestic and foreign banks."