Iraq's Economic Crisis Precaution 'External Borrowing'!

Iraq's Economic Crisis Precaution 'External Borrowing'!

Iraqi Finance Minister Ali Allavi announced that the country will receive a loan from the World Bank as a precaution against the economic crisis it faces. Finance Minister Allavi held a press conference regarding the economic crisis due to the drop in oil prices in the country and the coronavirus (Covid-19) outbreak. Explaining that they will go to foreign borrowing because of the economic crisis faced by Iraq and the financial crisis where even civil servants' salaries cannot be paid, Allavi said:

"We will try to get credit from the World Bank to get out of the financial crisis."

Ali Allavi, who stated that it is difficult to accept the 2020 budget in the Assembly, said that they have started to make budget preparations for 2021. In addition, Allavi stated that they will continue to borrow from some local banks so that civil servant salaries can be paid without a hitch. Iraq had difficulties in paying civil servants and pensions in the past two months and had paid their salaries late. The Iraqi government had to withdraw loans from three domestic banks to avoid problems in paying civil servant salaries.