Economists: the government did not take advantage of falling oil prices enabled reforms that are consistent with the visions of international institutions



Economists stressed, on Saturday, that the government did not do the reforms that are consistent with the visions of international institutions such as reducing some forms of financial support and employment policies and stop uncontrolled spending, while pointed to confusion in the clear economic policies that produced the successive crises.
The international institution credit rating, announced adjusted classification of the Iraqi economy from "stable to negative", while attributed to the decline in oil prices and poor political and security situation and tensions "ethnic and sectarian," predicted improvement in the situation in Iraq during the 2017 year.
The economist said Maytham defect in an interview for the "long", that "Iraq and years ago was unable to provide a model for a disciplined economy in recent years, both with the increasing oil prices earlier in the year or declining prices."
He added that "get loose an unprecedented financial and negative economic indicators jumped to levels that are no longer acceptable never before international institutions, where the budget deficit-to-GDP ratios have increased dangerously ES accepted international rates."
He explained that the defect "economic reform efforts have not succeeded in recent years in which they are supposed to take advantage of the decline in oil prices in order to activate the reforms that are consistent with the visions of international institutions such as reducing forms of support and to stop hiring and spending policies uncontrolled."
He said the "ruling elite is aware of the importance and necessity of reform, as well as political and security conditions and the lack of seriousness in accomplishing the reforms have led to the deterioration of all economic indicators in various industrial and agricultural sectors."
Fitch said the International Foundation for credit rating, in its report, which announced on Thursday (March 3216), and I followed (range Press), "The classification of the Iraqi economy rate was amended from stable to negative, to one degree (B-) of the deterioration of oil prices, increasing the deficit in the gross domestic product GDP from 8.2 percent in the past year in 2015, to 15 percent during the current year 2016, in line with expectations, "likely the possibility of improving the Iraqi economy more during the next year, in 2017 the deficit rate to fall to 7.6 percent of the total gross domestic product."
She said the organization, that "the rating was based on key indicators including the decline in oil prices, which led to the deterioration of the financial situation of Iraq, which relies more than 90 percent of its economy on oil imports, which constitutes 50 percent of GDP," indicating that "the inability of the Iraqi economy As a result increased to 8.2 percent during the 2016 year. "
She explained Fitch, the "predicted the survival of the price of Brent crude rates during the current 2016, at $ 35 a barrel, would increase the deficit rate of growth of the Iraqi economy, to 15 percent during the current year compared to the past in 2015," pointing out that "other indicators that have been adopted in the classification, related to bad political and security situation. "
According to the institution, that "Iraq has made some progress against Daash, but the threat of regulation is expected to continue during the current year 2016 at least," he continued that "ethnic and sectarian tensions are also led to political instability in Iraq." Predicted Fitch, too "weak growth of investment in Iraq during the current 2016 because of lower oil prices, with the government's inability to repay the amounts spent by international companies in their projects within the country," the follow-up to the "indicators that are expected to lead to improved economic situation more during the next year in 2017, is the possibility of the high price of crude Brent from $ 35 a barrel during the current 2016, to $ 45, predicted the survival of export rates at three million and 300 thousand barrels per day, for the years 2016-2017, as well as the recovery of non-oil sectors, which will coincide with the expected improvement in the security situation. "
In turn, an economist Mustafa Mohamed Habib said in an interview for the "long", that "the inability of the government to adopt a clear and explicit understanding of the country's economy over the past years led to mislead the public opinion of the external advisory and research institutions that assess countries' economies annually."
"The decline in assessing the Iraqi economy from stable to negative was the result of confusion obviously suffered by previous governments in the economic file management and control of corrupt officials on the overall financial institutions of the state."
He explained that the beloved "worsening of the financial crisis almost two years without setting realistic solutions by the government led to a decline in the local market movement is cause for concern, with increasing opportunities to enter Iraq in the new political and economic crises."
He said the "non-state institutions in response to the instructions and tips global financial institutions need to reduce government support for some of the non-productive sectors, in addition to legalize non-essential expenditures prevented the improvement in the financial situation of the country."
Habib stressed that "recycling money and help the private sector in addition to developing plans based on realistic figures and without waste of oil money, possible factors that restore the Iraqi economy to recover gradually." The Fitch international institution credit rating, Fitch Ratings, is a wholly owned subsidiary of Hearst Corporation, one of the three rating majors along with Standard & Poor's and Moody's, the company was founded by John Knowles Fitch, in (24 December 1913), in New York city on behalf of Fitch Inc., it merged with IBCA Limited, based in London in December 1997.
The credit rating agencies are private companies independent, evaluates the creditworthiness of bond issuers from countries or companies, that is the extent of the company's ability or the state to repay the debt or the ability to invest in, and reflected the classification issued by positively or negatively, on investors' confidence in the state or the company involved.
And based credit rating institutions on several criteria based on the economy, legislation and impacts of geopolitical and corporate governance, corporate governance and competitiveness in its credit rating institutions / countries, Kalrlakeh, assets and financial flows that show in the end the current financial situation resulting in the expected outlook for the institution or the state.
And return control of those three companies, the decision by the US Securities Commission in 1975 as accredited by them companies, as many of the financial institutions and insurance companies do not invest only in high-rated bonds, the easiest way by exporters bonds to prove their creditworthiness is to obtain credit from a company or two of these three companies classified into these three companies monopolized institutions like credit rating around the world.
The use of rating agencies symbols to describe the creditworthiness start from AAA as the highest credit rating (mean safer), down the rankings least deserved through letters AA, A and BBB, and so on, right down to D (mean stuttering), while the mean rating (B-), which granted Iraq (risk).