Finance: international bonds will revive the economy for a limited period 9/2
Finance: international bonds will revive the economy for a limited period
Baghdad/Noor Ali 2015/01/02
The parliamentary Finance Committee, predicted Tuesday the Iraqi economic recovery, by issue international bonds worth $ 6 billion, saying it's from the road when the economy collapses, with student economists attach budget cash flow tables in domestic and foreign currency, they should not send for
6 billion dinars.
Member of the parliamentary Finance Committee Sarhan told silvani "range" that "this step steps prescribed by the budget Act No. 2 2015, international bond issuance and one of the ways to address the shortfall in the budget, 25 trillion dinars, now under low oil prices I think up to 50 trillion dinars".
"This move could revive the proposal Ed Iraqi for a limited period until the stability of oil prices in world markets," for the purpose of addressing the shortfall in the budget, we have internal and external bonds, and the last is the best, because the demand for domestic bonds by weak citizens, notable to the level you desire.
Silvani continued that "the issuance of international bonds, negative impact on the long term and not the near future generations over the next 20 years will bear those expenses that will address the current economic situation, it is timely treatment."
Government revenues have fallen with the drop in oil prices at a time when Iraq is waging a costly military campaign to organize daash in Northern and Western provinces which resulted in a potential deficit of as much as 25 trillion Iraqi dinars ($ 21.4 billion).
For his part, says Economist Dr, Ahmed ibraihi, said in an interview to "range" to "$ $ 6 billion is not large compared with the size of the Iraqi economy, and size possible for oil revenue in normal circumstances, this command will not send for a reservation".
"But if foreign borrowing has become significant, when it should be, because it's not burdening the budget additional obligations, especially as oil supplier wobbling." "Borrow $ 6 billion would allow more foreign currency to the Ministry of finance, becomes able to sell more to the Central Bank which supports the last reserves indirectly."
He noted that "the need for religion need to reduce foreign currency inflows, personally demanded the House to attach a table showing the budget cash flow inside and outside of foreign currency, and foreign currency balance shall be accompanied by the general budget.
He noted that "this balance will show how to enter Iraq from foreign currency and km will come out, and the amount the Government needs them, and how much of the oil revenues and other sources", expressing regret for not applying this way. "
Increased by saying that "the absence of such a table that shows the inward and outward flow of foreign currency, we cannot estimate the need for borrowing, prompted the House of representatives in next year's budget to be annexed to this table, and on the basis of this table is to estimate debt from home and abroad."
Finance Minister Hoshyar Zebari (4 March 2015) that Iraq was studying several options to overcome financial shortfalls suffered by now, these options are borrowing from banks and issuing bonds worth six billion dollars, in agreement with global banks.
Zebari said that the Ministry is looking for ways to cover the fiscal deficit by several means, including "financial bond issuance or borrowing from State banks and part of assets deposited in the Central Bank to loan bonds worth a $ 6 billion agreement with Dutch you German city with you.