Iraq counts on Gulf States to lift it from the crushing financial crisis

Shafaq News / The parliamentary financial committee expected on Sunday, that the financial and economic crisis in the country will soon end, by   convergence and openness with the Gulf countries.

"The financial and economic crisis in the country will end soon after opening up to the Gulf states and regional countries, which will contribute to a significant improvement in the economic situation and achieve great political stability," the committee member and deputy of Diyala governorate, Ahmed Madhar al-Jubouri, told Shafaq News Agency.

"The government's control over all border outlets will also contribute to the end of the financial crisis and overcoming it soon," noting that "there are trends and constants in the government and parliament not to prejudice the salaries of employees and improve their living conditions during the coming periods,” he added.

The transmission of the federal budget by the government to the Iraqi parliament was delayed due to the continuous protests since last October, which led to the resignation of the government headed by Adel Abdul-Mahdi and its transformation into a caretaker government that is not within its powers to send the draft budget to the parliament.

The current year’s budget (according to the government’s proposed project) is 162 trillion dinars (135 billion dollars), with a planned financial deficit of 48 trillion dinars (40 billion dollars), including three trillion dinars (2.5 billion dollars) to implement the projects agreed with China.

On his part, the independent deputy, Bassem Khashan said on Sunday that Prime Minister Mustafa Al-Kadhiimi is going to borrow from Gulf countries to secure the employees ’salaries.

"Prime Minister Mustafa Al-Kadhimi has become obliged to borrow financially from the Gulf countries because of the financial crisis and the deterioration of oil prices; in addition to that it is not possible to borrow from Iran because of its economic situation,” Khashan told Shafaq News Agency.

"The Gulf countries are the closest to Iraq now," noting that "the government will borrow from these countries to contribute in securing the salaries of employees and retirees and providing them."

Khashan pointed out that "there are financial benefits that will accrue to Iraq because of these loans, which will be borne by future governments."

The Iraqi government had sent Finance Minister Ali Allawi to Saudi Arabia and Kuwait, discussed with officials of the two countries the economic situation and oil prices in light of the outbreak of Corona virus and the decline in global economic growth because of the pandemic.