Iraq and the IMF agree on the price of 43 dollars for oil in the budget of 2017

Said the International Monetary Fund, Sunday, that the size of the deficit in the budget for Iraq in 2017 and it is difficult large coverage, and while stressing the need to reduce it by half, I suggest the need to determine the sale price of oil at $ 43 a barrel, instead of the current price budget.

The governor of the central bank on the Keywords in an interview on the sidelines of the Iraqi delegation to the ongoing in Amman, the IMF mission, said that "discussions revolve around two axes foundations first concerns the periodic review of the Convention on the willingness of credit, and the actions taken by Iraq during the period that followed the agreement."

He added Keywords "The second axis has focused on discussing budget for Iraq in 2017 and the study of its terms and size of expenditures and revenues and the deficit expected in," noting that "the Iraqi delegation For his part, presented a report on the actions taken during the last period, The Fund delegation point Iraq's commitment to implementing most of the provisions of the Convention , and with a limited items requiring completion in November of this year, a month ago. "

Among Keywords that "the Fund found that the size of the deficit in the 2017 budget of 34 trillion dinars represents a large deficit is difficult to be covered, and should need to be reduced by more than half."

He noted the central bank governor and the agency that "the bank's view sees this deficit carries great risks and there is a need to be reduced, especially if the proposed coverage of the resources in the budget bill is not possible and is readily available, which would disrupt the implementation of the general budget allocations and have distorted implementation and puts the Ministry of Finance in a difficult position." .

Keywords and continued that "the size of the deficit will increase the general government debt to very high levels, where domestic debt will be only on the government end of this year more than 40 trillion dinars," pointing out that "the government's borrowing and demand from the central bank to buy treasury transfers impact and will greatly affect the Central Bank foreign currency reserves, the fact that pumping Iraqi dinars without the presence of Maakablh of the dollar, which means generating demand for the dollar more than it received by the Central Bank of the currency from the Ministry of Finance. "

Keywords and pointed out that "the requirements of safeguarding Iraq's cash reserve call not to build the budget on the deficit exceeds the effective level of public debt service reserve," pointing out that "the Fund suggested that the price of oil source in the budget of 2017 about $ 43, based on the expectation of prices in the coming period of oil, as the fund proposed further reductions on costs and increase some of the revenue that is still being sought on them. "