The Iraqi government asked Parliament on Wednesday for authorisation to borrow from international markets and plug what is expected to be a steep budget deficit this year.
Iraq has occasionally resorted to international markets for borrowing since the US-led invasion toppled Saddam Hussein in 2003.
Official media said the legislature on Wednesday heard the first draft of a law to allow the Finance Minister, Ali Allawi, to borrow “from international financial institutions and foreign banks to finance public expenditures”.
A copy of the proposed law said the government was facing difficulty in financing its expenses because of budgetary delays, the coronavirus and a sharp drop in oil prices.
Parliament ordered the government to present the 2020 budget by the end of this month.
Sarkawt Shams, a member of the the Kurdish bloc in Parliament, told The National that the new legislation lacked any curbs that could help to contain Iraq's runaway spending, and gave Prime Minister Mustafa Al Kadhimi wide discretion.
"It is really not a bill but just a couple of lines to allow Kadhimi to freely get loans from whoever he wants," Mr Shams said.
He said he feared that the new borrowing would continue to be spent on salaries, not on investment Iraq badly needs.
Repeated delays in replacing prime minister Adel Abdul Mahdi since street protests forced him to resign in November last year contributed to postponements in passing the 2020 budget.
The authorities, supported by pro-Iranian militias, cracked down on the uprising, killing unarmed demonstrators and committing other violent acts.
A report released by the World Bank in spring said that if oil prices stabilised in the low $30s a barrel, the Iraqi government would need to raise $67 billion (Dh246.09bn) in financing in 2020, equal to 39 per cent of gross domestic product, to cover spending.
The oil price is hovering in the high $30s, having recovered some of its record losses this year.
Iraqi Parliament figures in April showed that a draft $135bn budget for 2020 by the Abdul Mahdi government was calculated based on a projected oil price of $56 a barrel.
They said the budget deficit, forecast at $40bn, could more than double to $85bn this year.
Mr Al Kadhimi said he found state coffers were empty when Parliament approved him as prime minister on May 5.
A former intelligence chief who is supported by Washington, he this week ordered pay cuts for the Cabinet and general managers in the bureaucracy, as well as Parliament and the presidency.
The country is one of the top five members of Opec, with oil exports providing at least 90 per cent of government revenue.
Most public spending goes on salaries to seven million public employees.
Mr Al Kadhimi said he also ordered the elimination of dual salaries and what he called wages to fraudulent names on the government payroll.
“Solutions to the financial crisis will not be at the expense of limited-income employees, retirees and those who deserve to be on social welfare,” he said.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Honeymoonish
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
MEYDAN%20RACECARD
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12%20restaurants%20opening%20at%20the%20hotel%20this%20month
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Despacito's dominance in numbers
Released: 2017
Peak chart position: No.1 in more than 47 countries, including the United States, the United Kingdom, Australia and Lebanon
Views: 5.3 billion on YouTube
Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification
Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.
Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards
How to volunteer
The UAE volunteers campaign can be reached at www.volunteers.ae , or by calling 800-VOLAE (80086523), or emailing info@volunteers.ae.
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
CREW
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Wonka
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Formula One top 10 drivers' standings after Japan
1. Lewis Hamilton, Mercedes 306
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 234
4. Daniel Ricciardo, Red Bull 192
5. Kimi Raikkonen, Ferrari 148
6. Max Verstappen, Red Bull 111
7. Sergio Perez, Force India 82
8. Esteban Ocon, Force India 65
9. Carlos Sainz Jr, Toro Rosso 48
10. Nico Hulkenberg, Renault 34
RESULT
Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')
Afcon 2019
SEMI-FINALS
Senegal v Tunisia, 8pm
Algeria v Nigeria, 11pm
Matches are live on BeIN Sports
Results
4pm: Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m; Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
4.35pm: Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m; Winner: Walton Street, William Buick, Charlie Appleby
5.10pm: Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m; Winner: Canvassed, Pat Dobbs, Doug Watson
5.45pm: Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m; Winner: Midnight Sands, Pat Dobbs, Doug Watson
6.20pm: Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m; Winner: Lord Glitters, Daniel Tudhope, David O’Meara
6.55pm: Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass
7.30pm: Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m; Winner: Final Song, Frankie Dettori, Saeed bin Suroor
The Al Barzakh Festival takes place on Wednesday and Thursday at 7.30pm in the Red Theatre, NYUAD, Saadiyat Island. Tickets cost Dh105 for adults from platinumlist.net
