International Monetary Fund: $ 70 billion cost of low oil prices in the region

The IMF's vision floated toward the region, said h.e. Mrs Christine Lagarde, Director General of the International Monetary Fund to fund as much as by 2015 that lower oil prices in the region will be $ 70 billion, or the equivalent of 5% of the GDP of the GCC countries.

And h.e. Christine Lagarde, a lecture in which I discussed the economic challenges faced by the GCC States in Arabic, following the meeting of the GCC financial and economic cooperation Committee and the joint meeting of the Finance Ministers of the Gulf Cooperation Council States with the Committee of Governors and the Director General of the IMF, hosted by Doha.

She reviewed Ms. Lagarde, Director General of the International Monetary Fund, some preliminary papers done by IMF on how best to support that could be provided for the GCC countries, with a view to addressing the significant challenges faced by the region, making the responsibility of policy makers regarding the burden responsibility to address those challenges.

The GCC is experiencing declining growth by certain factors, comes at a time when the world is witnessing other challenges including interest rate increases expected in the United States, beginning a new cycle-perhaps goes-on low prices, are a reminder that strong leadership and international cooperation and wise policies help to deal firmly with those challenges.

Low value added tax value to increase the income and revenue provided in this connection see the IMF toward the region, explained policies that can track particular jointly and collectively, along with how the IMF could play a role in meeting the needs of the States of the region and other States.

The sharp decline in oil prices, adding that countries in the region began to absorb the shock of that growth in non-oil sector looks sluggish, too, is the decline coincided with the increase in oil production, but weak non-oil sector would only fund forecast a drop in rates of GDP in 2016, the growth Outlook for the GCC region Gulf Arabic, decline in growth to 3.2 percent this year, compared with 3.4% in the year before, down To 2.7 percent next year.

According to the International Monetary Fund estimated in 2015 that lower oil prices in the region will be $ 70 billion, or the equivalent of 5% of the GDP of GCC States, "it is a significant number and it is time to take steps in this regard", explaining that it was better that the States begin to impose value added tax value low, would increase revenue and earnings, calling that is not accelerating in this way.

As regards the financial aspects, finance, invited His Excellency Ms. Christine Lagarde, Director General of the International Monetary Fund, Gulf countries to assess the capacity of the banking sector over sovereign debt sustainability, and should take into account the issue of credit risk assessment that would be borne by States and Governments, and noted the positive factors including the GCC banking system occupies a good under dealing with falling oil prices and declining growth rates.

According to recent studies, indicated that GCC States have progressed much on the side of financial supervision and regulation by applying the standards of Basel III, in relation to capital and other aspects, but updates should take place in the real estate sector in the region, indicating that it does not apply to all countries.

They stressed that the private sector plays a larger role in the GCC States by moving forward in structural reforms to make the private sector more diverse. Commending the role of the private sector in countries like Oman and Saudi Arabia, and Qatar.

The continuing decline in global growth rates, will result in a sharp decline in financial and monetary equilibrium, because spending has not adapted in most countries with low oil prices, expected cash deficit to 13 percent of GDP for countries in the region, but cautioned that this deficit can be tghith in the short term because the GCC countries, was able to build large reserves of oil revenues over the last decade.

It reviewed economic secretions to the political situation in the Middle East, calling for coordinated international steps to respond to the demands of the migrant crisis, not only in States that access, but also at the level of countries of origin, thus requiring modification of monetary policies and adopt policies that promote stability and stimulate the private sector to create jobs and growth.

Turning to talk about monetary and fiscal aspects, most GCC countries have followed prudent fiscal and monetary policies have been put into effect, which made the position of strength that can counter the negative effects on growth, indicating that the monetary and fiscal frameworks should strengthen over the medium and long term, in order to avoid any future repercussions.

Support the region's countries praised the reforms of 2010, the IMF, which will be ratified once this year, and "the reform should be to reflect the diversity and the changing economic roles in the world". D9%82%D8%AF_%D8%A7%D9%84%D8%AF%D9%88%D9%84%D9%8A_7 0_%D9%85%D9%84%D9%8A%D8%A7%D8%B1_%D8%AF%D9%88%D9%8 4%D8%A7%D8%B1_%D8%AA%D9%83%D9%84%D9%81%D8%A9_%D8%A 7%D9%86%D8%AE%D9%81%D8%A7%D8%B6_%D8%A3%D8%B3%D8%B9 %D8%A7%D8%B1_%D8%A7%D9%84%D9%86%D9%81%D8%B7_%D9%81 %D9%8A_%D8%A7%D9%84%D9%85%D9%86%D8%B7%D9%82%D8%A9-ZAWYA20151109071251/