Iraq will resort to local borrowing only, MP says

Shafaq News / The Parliamentary Finance Committee stated on Friday that the council of Representatives will oblige the Iraqi government to locally borrow only to cover the deficit in operating expenses.  The Iraqi government had previously submitted a bill to the Parliament authorizing it to borrow an amount of 41 trillion dinars to cover the fiscal deficit for the remaining months of this year.  However, parliamentary sources told Shafaq News that Parliament will reduce the borrowing value to only 15 trillion dinars.  Member of the Finance Committee, Jamal Kocher, told Shafaq News Agency, "The Committee will inquire from the central bank administration and government banks about the possibility of borrowing and financing the government to bridge the fiscal deficit and secure salaries", adding", "the committee will make amendments to the law on financing the fiscal deficit to reduce the borrowing rate".  This is the second time that the government has submitted an authorization request to borrow money, after the first time in which it locally borrowed 15 trillion dinars and $ 5 billion from foreign sources.  Iraq has resorted to borrowing to fill the fiscal deficit in the country due to the drop in oil prices caused by the COVID-19 crisis, as revenues from selling crude cover 95% of state expenditures.