monetary professional Salah Nouri showed on Wednesday the lifestyles of a liquidity disaster at some of government banks, which includes Rafidain and Rashd banks, further to the exchange bank of Iraq and the Iraqi employees’ Retirement Fund. He attributed the motive to the buildup of internal money owed at the Ministry of Finance as a result of its reliance on domestic borrowing to cover the price range deficit during the last years.
Nouri advised dinaropinions.com, “there may be a liquidity disaster plaguing authorities banks and the pension fund, as a result of the Ministry of Finance’s mounting inner debts to cowl the budget deficit for several consecutive years.”
He introduced that “this crisis has without delay impacted those establishments’ ability to meet their obligations,” even as noting that he “does not have specific figures which can affirm or deny the statements made with the aid of numerous MPs on this count, because of the Ministry of Finance’s directive no longer to provide government banks with any economic facts.”
In recent years, the Iraqi Ministry of Finance has trusted a policy of domestic borrowing to cowl routine deficits inside the public finances, by way of borrowing from government banks and the employees’ pension fund.
This method, although a transient degree to cope with working charges, has brought about the buildup of large money owed for the Ministry of Finance, without delay impacting the liquidity of lending monetary establishments.
