The government is working with three alternatives in order to avoid the economic crisis and the payment of salaries

Author: HH, ZJ
Editor: BK, HH

2016/01/13 12:17

Long-Presse / Baghdad
Denied Economic Adviser to the Prime Minister Haider al-Abadi, on Wednesday, and there is no intention to undermine the salaries of employees and retirees, and stressed that the government is working with three lines as alternatives to avoid the current financial crisis, while calling an expert to shift from the dinar to foreign currency being a "real constraint" on economic activity Iraqi, and carried the Finance Committee, a member of the parliamentary government, blamed for worsening the financial crisis and demanded not to take the consequences on citizens.

Abadi adviser: no intention to undermine the salaries of employees and retirees

He said the appearance of Mohammed Saleh, an economic advisor to the Prime Minister Haider al-Abadi, said in an interview to the (long-Presse), "The talk of cutting staff salaries or laid off or give them compulsory leave just rumors," denying that "the government has talked about the prejudice of those salaries."

Saleh added, "The government is working with three lines as alternatives to avoid the financial crisis faced by the country is currently estimated at guaranteed pay employees' salaries," noting that "the government is working hard to secure the needs of the fronts of the war against terrorism to liberate the land of Iraq as a job basis."

He explained adviser Abadi, that "the army and the crowd and popular Peshmerga, they were able to restore 50% of the usurped land by Daash terrorist gangs, so they deserve a lot," pointing out that "the government is responsible for the lives of four million and 500 thousand employees, and three million and 750 thousand retired , they are linked to government payments system, and it must do financial management to ensure the necessary financial sustainability by working hard day and night for the advancement of such great responsibility. "

The head of the Council of Ministers, Haider al-Abadi, denied on Tuesday (January 12, 2016), during the Cabinet meeting held in the province of Basra, "rumors" about the reduction of employees' salaries or give them leave or reduce their number, and accused "some people seeking to shuffle the cards and transmit rumors ".

Expert: should shift from the dinar to foreign currency being a real constraint on economic activity

For his part, economist Ahmed Rehn, said in an interview to the (long-Presse), that "the government will not have to cut employees' salaries or even reduced, because the central bank's reserves are sufficient to stroll things until the end of the current 2016," noting that it "includes salaries the general staff, not parliamentarians, ministers and senior officials. "

And saw Bureihi, that "the government problem lies being do not take the advice," adding that "a lot of experts and specialists have repeatedly asserted that the problem lies in foreign currency management, which constitute a real constraint on public finances, the first constraint on economic activity in Iraq."

He said economic expert, that "the government has neglected this constraint (foreign currency) instead of take care of him at this stage", calling on the government to "take note of the fact that oil supplier foreign currency intervention in Iraq, so the decline in prices leads to the problem of declining foreign currency volume in Iraq."

He Bureihi, that "the government wants to import and pay obligations abroad, and that the private sector is the other wants to import and invest abroad, which means there is an urgent need for foreign currency," stressing that "the state should be transformed from the dinar to foreign currency and manages the Iraqi economy Based on that".

Parliamentary Finance: to endure as a result of government mistakes and not take the consequences on citizens

She said a member of the Parliamentary Finance Committee Majida al-Tamimi, in an interview to the (long-Presse), "The decline in oil prices impact in all exporting countries, not just Iraq," afterthought "but the problem of Iraq that depends on oil by 93 percent versus seven percent for other revenue."

She said Tamimi, that "the other exporting countries diversified income and development funds to invest oil revenues, and the accumulation of financial reserves enabled it to cope with the current crisis," adding that "the current Iraqi government took office through September of 2014, ie at the beginning of the crisis, the collapse of oil prices, but not drawing up plans or programs to address them. "

She asked a member of the Parliamentary Finance Committee, "why the government is not working to find alternatives for the development of the economic side and avoid the current deterioration, and why not do the customs tariff which legitimized by the House of Representatives since 2010, which would have saved them added resources law", stressing the need to "government bear results not make innocent citizens pay the price for their mistakes. "

The world oil prices fell more than 60 percent since the summer of 2014 the past, where fallen from about $ 120 a barrel then, to less than 34 dollars currently.