Iraq plans to cut spending non - oil 15% in the budget of 2016



2016-07-14 18:54:22 | (Voice of Iraq) - Baghdad

Revealed a document issued by the International Monetary Fund, on Thursday, for the determination of Iraq spending cuts the non - oil 15 percent in the budget of 2016 due to lower average oil prices, as suggested reduced the budget deficit to 4.9 billion dollars during the current year, it confirmed that Iraq aims to pay all arrears owed ​​to companies global oil by the end of the year.

According to the document cited by "Reuters" that "Iraq will cut spending non - oil 15 percent in the budget of 2016 due to lower average oil prices than expected at $ 34.5 a barrel , " pointing out that "it is expected the budget deficit reduced to 4.9 billion dollars in 2016 and 13. 2 billion in 2017-2019. "

She added that "Iraq is expected to include funding for 2016 deficit to borrow $ 1.9 billion from the IMF and two billion from the World Bank , " indicating that "it is expected to decline in foreign reserves for Iraq to $ 31.5 billion in 2020 from 59 billion last year due to deficit financing."

The document explained that "Iraq aims to pay all arrears due for international oil companies by the end of this year and is expected to include funding for 2016 deficit also bonds of one billion dollars US to ensure international bonds and a similar amount , " noting that "gross domestic Iraqi shrank 2.4% in 2015 and is expected to grow 10.3% in 2016 ".

The Information Office of the Prime Minister Haider al - Abadi denied (June 26, 2016), and traded news on removing part of the employees ' salaries as a result of the memorandum signed by the Iraqi government with the International Monetary Fund, as pointed out that the memorandum will provide financial support for Iraq worth $ 5.4 billion over three years The interest rate does not exceed 1.5 percent.

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