Experts in the economy: the most prominent of these solutions to tackle the financial crisis in Iraq

Monday 11 January 2016 | 18:12

BAGHDAD / .. put the economic crisis faced by the Iraqi economy in the last third of the year 2015, the government in front of a sliding may result in an end to the collision with more than 4 million employees and retirees, particularly with regard to reduction of salaries under the name of "new peace" or any another name and campaign Limbering government and the abolition of many of the positions of sovereign and management proxy. .

In conjunction with the wave of popular anger of government performance, and demonstrations, and moving water reforms by reference in Najaf, last Friday, and claim to be reforms, "real", came Finance Minister Hoshyar Zebari's remarks, which are denied by the post, not the government's ability to continue to push forward employees' salaries during the next April, as a prick in extra feet Iraqi employee.

First oppositions and set off on a decision by the reduction of university professors, and who have expressed their categorical rejection to reduce the portion of their salary through large demonstrations, denounced the government to go towards reducing the monthly dues.

"Compensate for the lack of liquidity" process at a certain point and did not stop until it became the modern citizen, the first occupant, to take his share in the mode of expression cynicism once, and in a way ironic again, while others came as proposals, most notably a proposal "to grant parliament leave for an entire year without salary "for a few expenses.

Amid the presence of the fingers point towards the fact that the austerity measures announced by the government work out, may be "conditions" of the International Monetary Fund to lend to Iraq, nodded activists and economists specialists, they took the economic crisis seriously, by the possible reduction of the crisis and bridging the gap deficit in the 2016 budget year, which exceeded the 24 trillion dinars.

And he predicted the parliamentary finance committee member Majda al-Tamimi's government to take "measures" and described "a failure", to meet the fiscal deficit, the government, represented by the orientation towards reducing the rate of the dinar or mortgage oil.

She said Tamimi's "Eye Iraq News", that "the government is expected to tend to reduce the value of the Iraqi dinar against the dollar or mortgage Iraqi oil for decades to come," asserting that "these two options Sadharan the Iraqi economy and the citizen significantly."

But the trend is expected for the Government of the Central Bank found lookout, where the latter stressed that "the bank's board is the only body authorized according to the law determining the dinar exchange rate."

And is reducing the value of the dinar against the dollar, and a pledge of oil, economists expressed fears of government directed towards another proposal represents a reduction of pensions, and Parliament voted to approve the material contained in the budget of 2016 pertaining to the deduction of 3% of the employees and pensioners, and provides this article on the distribution of this deduction of 60% of the popular crowd and 40% of the relief to the displaced, another paragraph added to the budget.

Economic spokesman Antoine said for "Eye Iraq News", that "the government and the judge of Representatives decision to deduct part of the retirees and employees' salaries would have a negative economic returns and it will help increase the Iraqi market contraction," explaining that "Iraq is going through an economic crisis and a clear and thus Fastqtaa salaries though by relatively few, it will greatly affect the majority of Iraqi citizens who depend on salaries. "

When he proposed obtaining the debt of mobile phone companies and others as well as the application of the customs tariff would have saved the government large sums of money to be bigger than achieve deduct salaries to clog the fiscal deficit ", especially since the value of the indebtedness of the mobile phone companies have reached more than $ 400 million.

In addition to the above solutions, the Iraqi government stressed the need to go to the Iraqi industries and the development of the industrial and agricultural sector to ease the pressure on oil, which some dropped to the difficulty of the advancement of the domestic industry, which took decline gradually after 2003, until it became the "Made in Iraq" a number of anecdotes until the tomato paste tray.

The proposed other solution has walked away Iraqi map, down to the Arab and European countries, representing the levy Iraqi funds contraband, and foreign affairs, in addition to the cancellation of Mentvih economic agreements necessary, including the Baghdad agreement-Oman, and the judge to sell a barrel of oil at less than rolling the market price at $ 20, which will provide 200 thousand dollars a day for the Iraqi treasury, as opposed to "good neighbor" principle taken by Oman, and even Baghdad, for the continuation of the Convention concluded between the two parties.

"Forced savings" from the staff proposal also emerged within the possible suggestions, as well as "granting leave without pay", the last of which was represented by "giving Parliament an open leave without pay" to reduce costs, and benefit from the allocation of parliamentarians and the presidency of the House of Representatives in more directions necessary and reduce the number of protections, and reducing the number of members of the provincial councils in half, and the most unusual proposal may represent the distribution of salaries every 45 days, instead of the 30 followed.

In addition to the solutions to the many proposals submitted to the cabinet table, the last insists rely on external borrowing, excluding financial and the metal of the accounts of the Central Bank reserves, to confront the crisis, which now haunts the employee and the ruling alike, and highly influenced by degrees, because of saving it all of them. " black day "as described by the popular proverb.

Hussein Al-Attiyah

No new earth shattering news in this article. It is just a compilation of all the suggested solutions that have been presented lately -Loop