Economic Observatory Warns Against Proposed Foreign Borrowing Law and Its Repercussions on Non-Oil Revenues

mniraq - A specialized economic observatory warned against the proposed foreign borrowing law, considering that some of its clauses could open the door to corruption, negatively impact non-oil revenues, and create unfair market competition. In an official statement, the observatory clarified that the proposed law, prepared by the Parliamentary Finance Committee, grants the Council of Ministers the authority to borrow externally up to a maximum of $5 billion per case, while granting the Minister of Finance the authority to borrow up to $2 billion. Amounts exceeding these limits would require parliamentary approval. The statement added that the law includes exempting lenders from taxes and customs duties related to their projects, warning that these exemptions could weaken state revenues and allow for the introduction of materials outside the scope of the projects under the guise of exemptions. It noted that these privileges might create unfair competition with Iraqi companies and contractors who fully pay their taxes and duties.