Iraq on the door of bankruptcy: in months may be unable for the salvation of his staf
Iraq on the door of bankruptcy: in months may be unable for the salvation of his staff
1/6/2016 0 Comments
Hoshyar Zebari: the continuing decline in oil prices, prevent us from providing four billion dollars is the sum of seven million people monthly salaries. One of the alternatives: more borrowing from international institutions, warned Finance Minister Hoshyar Zebari said Tuesday the likelihood of inability to pay staff wages in April / April, in the event of continued low oil prices. Zebari said "In the past year, we have succeeded in the distribution of salaries, but this year, according to estimates available to me, we have exposed to the problematic in April / May may not be able to staff the distribution of salaries for that month," pointing out that "this is a reality and people must know ".
He added that "there are seven million people are paid salaries of Iraq's total population of 36 million," noting that "the total amount to be distributed from the monthly salaries of four billion dollars."
And on the procedures to be followed if oil prices continued to decline, Zebari said that "there are several alternatives, including borrowing from international institutions a few of the benefits," adding that "Iraq has received a few days ago billion and $ 200 million from the World Bank."
Iraqi Minister of Finance said that "The other option is how to raise the Iraqi dinar exchange rate, and although it choose the risk and could 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 whenever We have to provide. "
According to international and local reports that government corruption the main reason for the loss of record amounts of money Iraq.
He said Zebari earlier in 2015 expressly to "that Iraq is suffering a liquidity crisis for lack of sufficient to cover the expenditure of funds," adding that "the financial crisis due to the declining oil prices and the expenses of the purchase of the necessary weapons to counter terrorism organization Daash and military equipment."
According to the first of the year 2015 to triple digits, the Iraqi Central Bank reserves fell from foreign currencies to $ 68 billion, from $ 77.7 billion the end of 2013, an increase of $ 9.7 billion and by 12.5 percent.
Because of the shortfall in the payment of project expenditures, the Iraqi planning ministry decided last June, orientation to reconsider the project by about 9 thousand in the provincial completion rates (30-60%), by the financial crisis that affected the provinces and territories in northern Iraq.
Analysts say that "the crisis is not oil-related, but related to poor planning and a lack of strategic vision over the past 12 years to build the internal economy, and activating the productive enterprises rather than keeping the country's economy dependent on one-sided revenue."
Analysts and asserts that "the industrial movement in Iraq's semi-Off, due to lack of electricity despite the fact that the electricity sector has spent billions of dollars to it but it is still faltering, because of corruption and poor planning."