Mazhar Muhammad Salih, the financial advisor to the Prime Minister, stated that the budget for 2024, which went into effect, had a “precautionary deficit” of approximately 64 trillion dinars.
In a press release, Saleh said that Iraqi oil sales for 2024 are expected to average at least $75 per barrel. He also said that the general need for “bridge loans,” which are short-term loans, to deal with the possibility of a deficit may not exceed 10 trillion dinars in all cases, which is the borrowing amount allowed by Law No. 13.
The financial advisor added that the country’s “financial life” in 2024 is going well, but he was curious about how the Ministry of Finance and the Central Bank of Iraq managed to issue “Achievement Bonds” for public subscription in 2024.
According to Saleh’s explanation, these bonds are issued in multiple categories and are denominated in Iraqi dinars. One category offers 500,000 Iraqi dinars for two years and a 6.5% annual return. This indicates that these bonds are a safe investment because the government has committed to paying annual interest on them. Additionally, they are an essential component of bridging the deficit in the general budget for the year 2024, which means that they will take effect.
