External General Loan Fund -

Abstract

     The public loans, used by the countries which lack the natural resources, are not only successful means but also became the last havens which are rich in those resources. The best example is the situation in Iraq where global oil prices have fallen sharply calling for external borrowing as a solution to face the financial crisis within political instability.
     The study assumes that external loans are risky means used by the government. These loans are considered as a significant resource the government cannot survive without. But on the other hand, there should be considerate employment of these resources by the government. This cautious use will not be achieved unless laws are applied to control the income.