The financial adviser to the Iraqi Prime Minister promised that the important 20-year agreement between Baghdad and Beijing will be implemented this year, after the adoption of the country’s budget law.
“The Baghdad-Beijing agreement, which was not implemented last year, will enter into force after the adoption of the federal government budget law in 2021,” said Mohammad Saleh, the Iraqi prime minister’s financial adviser.
According to Al-Furat news website, he stated: “As everyone knows, this agreement is for 20 years and was signed on September 23, 2020, during the term of Prime Minister Adel Abdul-Mahdi, and after about a month, on October 18, it can be Done. Accomplished. However, the financial crisis delayed the implementation of this agreement and led to a decrease in Iraq’s reserves in the joint Iraqi-Chinese fund.
According to Saleh, the crisis of the Corona virus was another factor in the cessation of economic activities in China, in addition to other issues that were beyond the will of the two governments prevented the implementation of this agreement last year.
He stressed that the Iraqi Budget Law 2021 provides for the necessary financial resources for the implementation of this agreement, and two billion dollars will be allocated for the implementation of projects agreed upon by the parties, and another two billion can be added as a loan. . Other amounts can also be added in the form of China’s credit support for the agreement. If the budget law and the financing clause of this agreement are approved, this agreement will be implemented from this year.
According to Iraqi Prime Minister Mustafa al-Kadhimi’s adviser, the agreement guarantees funds for the purchase of 100,000 barrels of oil per day from Iraq in a joint fund to be spent on projects agreed upon by the two countries.
Noting that China is currently Iraq’s second-largest trading partner, he said he expects Iraq to increase its holdings to 500,000 barrels in the near future.
