Parliamentary Economic proposes to change the central bank's policy stresses: financial situation would be "the biggest challenge"


BAGHDAD / Ibrahim Ibrahim - the long-Presse

He confirmed in the parliamentary economic committee member that the economic situation will be "the biggest challenge" during the current year. While unveiled proposals to change the central bank's policy of selling the dollar and raise the price against the dinar, an economist pointed out that the decisions of the government and is floundering as a result of a deliberate shock drop in oil prices.

Said Nora Albjara, in an interview to the (long-Presse), "The economic crisis is the most difficult faced by Iraq in the current 2016", usually those that "the biggest crisis of the security problem of Daash terrorist gangs".
Albjara and added that "the economists expect a decline last in oil prices would require the Iraqi government and the central bank to prepare and develop the necessary to face it solutions", noting that "the Parliamentary Finance Committee presented a set of proposals out of the difficult economic situation in 2016, of which change the central bank policy Iraqi special to sell the currency, increasing the dollar's exchange rate against the dinar temporarily until out of the current crisis. "
MP said that "the secretariat of Baghdad have a lot of squares and properties that allow them the possibility of financing itself, if moved away from the cronyism and corruption."
The world oil prices fell more than 60 percent since the summer of 2014 the past, what the impact on imports of countries that rely on it as a resource for the basis of its economy, including Iraq.
In turn, the economic expert, Abbas Ibrahim Bahadli said in an interview for the "long", that "Iraq is characterized by the multiplicity of natural and human resources are able to activate the country's economy and take it out of its financial crisis, which currently suffers from."
"The exploitation of some of the resources by the government such as natural gas that is wasted on a daily basis for decades is a basic foundation for the diversification of natural resources in addition to providing millions of dollars that go to import pure gas for domestic consumption."
He Bahadli that "floundering so far the government does not know what to do as a result of shock drop in oil prices, which have entered in a vicious circle could not get out even if gradually, so note the loss of initiative element to put the austerity plan and clear to reduce disbursements institutions that are not subject to the real law defines financial revenues ".
He said the "next couple of months Sconan hardest financially due to mounting popular discontent toward the government, which did not provide only a few million dinars as a result of the constant truncated to the salaries of employees and retirees to fill the budget deficit of 22 billion dinars." He stressed that "to reduce expenses in accordance with the real plans and increase the resources of the state through taxes and the collection of money arrears for years in addition to the cancellation of the central bank daily auction through which the money the sale of oil smuggling may help in the development of the Iraqi economy on track right next to the stage."
For his part, MP for the Liberal bloc Messenger Sabah al-Tai, the government and the ministries concerned student to find an alternative to oil for the financing of public budgets for the coming years, considering that the continued decline in oil prices will enter Iraq in a real crisis could announce bankruptcy.
A member of the Committee on Parliamentary Services in a statement, received the "long" version of it, that "in light of the low price of a barrel of oil on world markets and the tense situation in the region, has to be on the government and the ministries concerned to find an alternative to oil for financing and building public budgets for the coming years."
He said al-Tai said "oil imports account for more than 90% of the general budget size annually, and must find another resource for the budget," pointing out that "the wages of collection to the Municipality of Baghdad and some of the ministries on the ads, shops and factories, businesses and restaurants, as well as taxes on phone companies mobile customs tariff and other, will be a good improbable for the government to fill some of the deficit to the draft budget. "
He said al-Tai "The government's dependence on oil imports, and regarded as a major supplier of the budget in light of the decline to $ 33, will enter Iraq in a real crisis could announce bankruptcy in the coming years."
It is said that the House of Representatives, in a voice (December 16, 2015) by a vote of those present on the draft budget law for fiscal 2016 valued at more than 105 trillion dinars, and a deficit of more than 24 trillion dinars, considered on the basis of the price of a barrel of oil to 45 dollars.