Parliament will not approve a new borrowing law, MP says

Shafaq News / A member of the Parliamentary Committee to follow up the Government's Program and Strategic Planning, Muhammad Al-Baldawi, confirmed on Wednesday that the Council of Representatives will not approve the new borrowing law "to prevent Iraq from drowning in debt".

Al-Baldawi told Shafaq News agency, "If the Iraqi Council of Ministers insists on the same approach of borrowing, then this means drowning Iraq with debt and tying it up with it", indicating that, "the Iraqi parliament approved the borrowing law some time ago, in exchange for the government's submission of a financial and economic reform paper".

He explained that the government today is moving towards borrowing only, and has no intention of financial and economic reform, describing this as a "dangerous matter."

Al-Baldawi stated, "The Iraqi parliament will not accept drowning Iraq with debts. For this reason, it is very difficult to agree to the new borrowing law", adding, "the government must assume its responsibility in providing employees' salaries, away from loans, especially since there are many revenues for the Iraqi state".

The Iraqi Parliament approved, on June 26, 2010, a bill that allows the government to borrow internally and externally to bridge the country's fiscal deficit.The government was able to meet the state’s expenditures for July, August, and September. However, it returned to introduce a new borrowing law to address the deficit in expenditures for October, November, and December.