Central: The government did not reduce spending too much and need to be five trillion dinars for salaries


Thursday, February 18, 2016 - 19:43

Central: The government did not reduce spending too much and need to be five trillion dinars for salaries
The Central Bank of Iraq, said the government did not reduce spending too much, while noting it needs five trillion dinars for salaries, said the government will resort to borrowing to cover the deficit.
The governor of the bank on the Keywords that "the government still has to five trillion dinars per month to cover the salaries and expenses of critical," noting that "these five when they do not have enough cover from the dollar from oil exports will certainly be covered by government borrowing, which the government is doing now. "
Keywords and added that "the decline in oil prices posed a significant strain on the financial resources are limited and make it under the current prices found with no accompanying cut government spending at the same rate."
Keywords and pointed out that "expenses when they are not connected to cover the export of oil, it will be a pressure on the reserve, because these expenses will turn into a request to buy the dollar and therefore, this process will cut the reserve indirectly."
Keywords emphasized that "the size of government spending when they do not have a cover of foreign currency, he resorted to borrowing to Ngtih difference."

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