Adel Abdul-Mahdi writes: provide liquidity as possible

01/22/2016 08:15

Books and Iraqi Oil Minister Dr. Adel Abdul-Mahdi: facing the country would balance the liquidity crisis like many states, but the country will allow a reasonable possibilities to ease the crisis, and some of these trends executable immediately, and there are other require some action:

1. What the Central Bank of the situation still reassuring, despite the decline in the reserve but has reserves of more than $ 50 billion, and compared to all, it has been the reserve in mid-2003 almost non-existent .. oil and imports less than 20% of what it is today, despite low prices, and foreign debt in excess of $ 120 billion, the highest level in the interior, and imports plunging markets.

Although the Reserve Bank is not the property of the government, but it represents a guarantee to move the economy, through the monetary instruments and exchange and interest rates, banks and secondary markets to help the government.

2. In state institutions, financial accounts deposited in banks tens of trillions of dinars. These funds mainly due to the ministries and companies, but some of these funds, can contribute to the establishment of funds and portfolios help generate more currency to help improve liquidity in the country and inject vitality in economic activities.

3. among the citizens banknotes ranging from 30-40 trillion dinars, of course, and these funds are the property of the citizens, and did not enter the economic cycle or banks, it is considered the process of hoarding, and the freezing of funds. It is known that saving sense Economic must equal investment, and therefore can lure trillions of dinars to enter the session and the transition to a productive funds, invested all its consequences on the liquidity and other economic aspects, and will be considered a real reform of the transition from the cash economy Cash Economy to the banking sector, which is the mainstay of economies Betty and modern development.

4. The state owns the assets of tens and hundreds of trillions of dinars from in-kind assets, and real estate assets, and land and plants are idle, and buildings experience and assets of the neglected, and the investments lost to ill departments, investment and opportunities for successful, and the activities of the economy move and lift the burden of the state a great burden, and provide a quick and direct Saullac, and reforms economic seriousness. Can fiscal policy of tax and other help in providing more resources for the State of smart actions do not strain the citizen, and the movement of the civil economy.

5. does not exceed inflation levels of 2% .. The debt is high .. Iraq has oil wealth .. large reserves .. natural resources .. and investment opportunities for large .. These are all the temptations of an attractive, to lend to Iraq and give him the necessary facilities in different forms. Religion is not a defect or shortage, it is economically, if they need to face in investment trends and possessed payment capabilities. Indeed, Iraq has always met its obligations when he was in the most difficult circumstances, the World Bank approved the granting of Iraq recently so I did not hesitate a loan of $ 1.2 billion on easy terms, on condition stop gas flaring, and stave off the collapse of the Mosul Dam, and all these things are in the end, for the sake of economy and the country.

6. What exists today in the treasury, nevertheless Dafh- not more than it was in the Treasury at the beginning of 2015 .. though Iraq was able public transit safely despite a lot of difficulties, and the war against Daash "and the destruction of many of the facilities, including the refinery Yeji, and recorded this of Finance and the central and prime minister .. they cut unnecessary expenditures, and spent only 63% of the budget in 2015.

As well as by increasing production of oil and exports than planned, which offset the rate of loss due to falling prices .. and achieved a net oil resources of $ 43.046 billion, driven them full dues of oil companies, which would be certainly (receivables) in 2016 lower than in 2015.

Concern the state and the citizens, the project, and must inform the public on the facts no matter how harsh .. but panic and the launch of rumors and lies and scare people is harmful work, and the solutions will not provide a complete solution and a final, but it will help to relieve the pressure, and resolving the issue of liquidity remains less complex than the solution the issue of the economy as a whole .. This is the best opportunity to carry out radical reforms, reduce the country's dependence on oil, and launched the movement in the market economy and enliven the real in different sectors.