Government spent bank reserves and conditions of the International Monetary crisis ..
The government spent bank reserves and conditions of the International Monetary crisis will make us
11/14/2015 0 Comments
The Parliamentary Finance Committee said, the government spent stockpiling reserves in state banks and the International Monetary conditions Sdnouk will make us into a financial crisis. According to the Commission's decision Ahmed al-Haj told all of Iraq [where] that "the 2016 budget is based on the source oil revenues, the amount of 3.6 million barrels per day," explaining that "the Department of exports come from the Kurdistan region is equivalent to 550 000 barrels divided into two parts 250 000 barrel from the region and 300 thousand barrels through the Kirkuk fields. "He added that" allocated to the province, the budget is 17% of the budget, but there are limits and restrictions, including actual spending, "noting that" in the case of lack of commitment by the province to deliver oil to SOMO, the company the government will not abide by any agreement to Kurdistan,"explaining that" the financial budget for 2016 is the clone of its predecessors in 2015 ".
He said al-Hajj that" the government may resort to loans, but in the case of increasing interest, Iraq would accept a financial and economic major crisis, "noting that" one of the conditions for IMF International borrowing is to force the government to raise support for the citizens.
"He added that" Iraq is able to overcome the financial crisis through austerity and internal borrowing from banks because they are free of interest, "noting that" no stock of reserves for banks because it disbursed by the government ".
The Fund International Monetary hinted last Wednesday, a large loan for Iraq condition removal of fuel subsidies.
The head of the IMF mission, to Iraq's Christian Gooch Wednesday, that "the IMF is expected to gross domestic product of Iraq recorded growth of 1.5 percent this year due to increases in oil production and that the deficit rise in the current account balance to 7 percent of GDP.
"It is said that, to get a loan from the International Monetary Fund will help Iraq OPEC member to stabilize the financial to the conditions while suffering because of falling costs in oil prices associated with fighting organization Daash terrorist .
A senior IMF last month and reported that the new loan for Iraq will be the largest "several times" of the emergency funding of $ 1.24 billion, the Fund has agreed to be submitted in July.
Any large loan from the IMF for Iraq will come the terms of such steps from Baghdad to reduce support prices Energy [include fuels and fuel such as benzene and other] and the reform of state-owned enterprises which steps may be difficult at the political level.
The House of Representatives has completed in its meeting last Tuesday, the first reading of the draft 2016 Baardat budget law estimated at more than 83 trillion dinars, compared to 106 trillion dinars as expenditure vs. deficit of 22 trillion Danar.