Iraq steps away from bankruptcy

Sunday, 06 March / March 2016 10:21

Iraq faces the threat of bankruptcy, especially in the wake of the continued battle against al Daash that drain the treasury Iraq nearly $ 4 billion between the salaries of the fighters and the military, at a time when world oil prices are suffering low, since Iraq depends on its budget on oil by 90%.

And stresses the Washington Post reported, citing Iraqi officials, that the Iraqi government is obliged to pay the salaries of about 7 million government employees, at a time when the United States seeks pressure on the Baghdad government to rationalize spending and initiate a plan of austerity, but this may lead to a comprehensive disorders permeated the cities of Iraq.

Oil prices, which have tumbled to less than $ 30 a barrel affected the entire region and forced it to cut budgets and reduce government spending and make difficult adjustments, but that it is for Iraq not only that, but also there is a war being waged by the Iraqi state against the organization, "State", The bill for the reconstruction of liberated cities and help some 3.3 million people displaced within Iraq.

The paper explains that while Iraq is suffering from the threat of bankruptcy looming, the reforms adopted by the Prime Minister Haider al-Abadi does not seem to be unpopular in some cases.

The paper quotes an expert economic adviser to the Cabinet the appearance of Saleh as saying that a milch cow, which was yielding milk no longer give milk, the milk is no longer, in reference to the emptiness of Iraq's budget, noting that the Iraqi monetary policy is currently based on the principle of filling the void.

According to Saleh, the Iraqi government began to draw from its assets abroad and cash reserves, noting that Iraq's reserves will be reduced from 59 billion dollars recorded in October / last October to $ 43 billion this year in order to satisfy the public budget deficit.

Among the measures resorted to by the Government of Abadi pay for treatment fees in government hospitals, even for visitors to patients in these hospitals, at a time is expected to raise the electricity tariff.

Abadi Despite talk about the weakness of the Iraqi imports, he said that the government plans to bring in more money, and expected to register Iraq's budget deficit of $ 25 billion, but it was on the basis of calculating the price of a barrel of oil at $ 45.

A Western official who spoke to the Washington Post on condition of anonymity, that Iraq has begun to burn cash reserves faster than expected, indicating that things are difficult to sustain in this way.

Iraq is seeking to get more funding from the IMF, especially after he got on an emergency loan of $ 1.24 billion last year, also received a US loan of $ 2.7 of the agreement in the military sphere, Germany has also provided a loan of $ 220 million for the reconstruction of cities affected.

This comes crippling economic situation that the country is living at a time when Iraqis pretending to protest what they called the corruption of their leaders, accusing government officials of squandering the country's wealth.

Mishan al-Jubouri, the deputy in the Iraqi parliament and a member of the Integrity Committee, admitted through a television interview that he was paid millions of dollars in bribes, a statement that caused an uproar in the Iraqi media.

Government Abadi moving within the framework of the prosecution of corrupt, as has referred four Iraqi officials to court on corruption charges last month, according to the adviser to the prime minister for economic affairs in favor of the appearance of it is not easy, it is the corruption of 12 years is required Abadi be chasing him.