Iraq postpones execution of projects to cut spending

21/08/2016 13:43

The Iraqi Ministry of planning has begun preparing for balancing 2017, especially in regards to completing the investment side. But the financial crisis undergoing in Iraq pay the Ministry «to try compressing expenses as much as possible, and not to enter into new financial commitments with the aim of easing the burden on State coffers. The budget bill «falls vacant of any new projects».

Ministry spokesman abdalshrh Hindawi told «life», the Ministry, in cooperation with those concerned and local Governments «endeavour to find appropriate solutions to finance 4500 ongoing project over the next year. He noted that the proposals developed so, funding for or view projects as investment opportunities to interested companies as well as private sector involvement in financing».

The Ministry was deleted earlier 296 projects at a cost of 10 trillion and 652 billion dinars (about us $ 9 billion), saying it was "not a priority at the current stage, 2169 postponed projects at a cost of 36 trillion at 720 billion.

And sources of project finance, Hindawi Ministry «funded part of the investment side balanced allocations next year, including projects that have reached advanced delivery rates, focusing on completing them at the earliest. He recalled that the Ministry "will take into account service projects that affect the lives of citizens like water, sewage, roads and bridges, power and infrastructure.

Hindawi drew to the Committee formed by the Cabinet headed by Minister of planning and membership of the Iraqi Central Bank Governor and officials of the ministries of State, to establish the structure for the distribution of benefits contractors, saying the first batch release is "payable and give the Central Bank responsible for payment through the issuance of Treasury bonds. He explained that the project was completed by the contractor «ratios exceeded 80 percent, his full financial dues, pledges to accomplish soon. While 40 percent will be spent for projects that do not exceed 80 percent completion rates, and the rest of the receivables after the completion of the project.

He was the Economic Adviser to the Prime Minister announced that favor appearance «financial distress remained, but their dangers lessened as a result of the availability of funding through borrowing from the International Monetary Fund, the budget structure and compressing expenses and reprioritization.

And parliamentary Finance Committee member confirmed Magda Tamimi, the country's financial crisis because of low oil prices «Government needs foreign loans to plug the shortfall in the budget, but that doesn't mean the adoption of these loans without activating other vital sectors. The large debts of Iraq has indoor and outdoor "is unable to repay.

In a statement said that "economic activity contracted by 2.4 percent 2015», «grow by 10.3 percent this year. She noted that the Government would cut spending, non-oil budget this year by 15 percent.