Zebari: low central bank reserves to $ 59 billion 1/5/2016
Zebari: low central bank reserves to $ 59 billion
1/5/2016 0 Comments
Finance Minister Hoshyar Zebari, said the Iraqi Central Bank reserves fell to $ 59 billion, revealing that he was thinking not to grant a full staff salaries and keep some loans, due to lower oil prices. According to Zebari, in a press permits pursued agency our economy news, that "2016 will be a difficult year for Iraq, because 2015 was difficult, and our expectations in the Ministry of Finance indicate that this year will be more difficult, but not the whole year, the rising oil prices in the month of September this year, noting that 90% of Iraq's economy depends on oil, so We had our calculations in order to know what we will do. "He explained," In the past year, we have succeeded in the distribution of salaries, but this year, according to estimates available to me, we have we are exposed to problematic In the month of April may not be able to distribute the employees' salaries for that month, and this is a reality, and people should know.
"On the possibility of high oil prices, the finance minister said," There are many parties estimated the price of oil, and private companies to oil prices, legal and companies, large global banks "pointing out that" the issue of oil price linked to supply and demand, when it increased the offer said price, said to be the aspect ratio will be reduced in the autumn of this year, affecting the price of oil, which has happened, the issue is oil linked to the situation which is going through the global economy, but Oil will remain conservative on its value as a commodity strategy.
"He added that" oil prices reached this level previously also, but rose later, "adding," but at this time no one can, not even Iraq to continue on the previous policy, because it is impossible to live on oil revenues only , The price of a barrel of oil dropped from $ 120 to $ 30, and if it merely dependence on oil, everything would be paralyzed, was a time when the distribution of salaries can not even come, so you should think about all the economic resources.
"He pointed out that" there are several alternatives [oil], including borrowing from international institutions, few benefits, and we did it. For example we have received help from the International Monetary Fund, and a few days ago we received one billion and 200 million dollars from the World Bank, we have introduced a monitoring program on how we manage the financial and economic policy, and if we succeeded we may get help more of them, as we intend to sell sovereign bonds, because the situation in Iraq this year better than last year in this regard.
"He explained that" The other option is how to raise the Iraqi dinar exchange rate, and although it choose risk has have repercussions, but we thought of not granting full salaries, and to keep some of our loans, and give a document that we will give money when the offer we have, and the other option is to sell oil and receive money in advance, in addition to raising the price of water, electricity and fuel service option, but is not easy, any government applied be subject to the reactions of citizens, economic and making painful, but it is said that any economic decision, if not painful, it is not a decision, and there are seven million people are paid salaries of Iraq's total population of 36 million, and distribute a monthly salary of four billions of dollars.
"And the Peshmerga allocations, within the general budget, said:" In these two years have been prepared in the financial budget for Iraq in a timely manner, and this did not happen in the history of Iraq, and we have talked with the presidency of the Kurdistan region and the presidency of the government to try to install the Kurdistan region's share of the budget as it is installed In the past year, we preserve the share of the Kurdistan region as a duty lying upon us, and if the Kurdistan region oil passed through the SOMO it will provide him with the budget of actual expenditures, because it no longer funds to Iraq.
"and" about the Peshmerga budget, they are found in the budget, budget Peshmerga within the constituent political program of the government, which is calculated within the Iraqi ground forces, and we have to secure that the budget for a period of six months, in accordance with the oil agreement between Erbil and Baghdad, but suspended later, and now when we talk with the government says it is ready to give it.