Iraq intends to cut spending 15% non-oil balancing 2016 because of low oil prices.

Thu, 14 Jul 2016 14:33:23

News/monitor Baghdad.


Revealed a document issued by the International Monetary Fund, Thursday, Iraq's intention to cut spending 15 percent non-oil balance 2016 by low oil prices, outweighed lower budget deficit to 4.9 billion dollars this year, stressed that Iraq intended to pay all arrears to the international oil companies by the end of the year.


According to the document, that "Iraq would cut oil spending 15 percent in 2016 by balancing lower average oil prices expected at 34.5 dollars per barrel," a sign that "the budget deficit is expected to decline to 4.9 billion in 2016 and 13.2 billion in 2017-2019.

"Iraq is expected to include financing the 2016 deficit borrow 1.9 billion dollars from the IMF and $ 2 billion from the World Bank", indicating that "expected Iraq's foreign reserves drop to 31.5 billion dollars in 2020 from 59 billion last year because of deficit financing".

The document clarified that "Iraq aims to pay all arrears to the international oil companies by the end of this year, and is expected to include financing the 2016 deficit also $ 1 billion bonds u.s. and international bonds guaranteed by the same amount," adding that "the Iraqi GDP shrank 2.4% in 2015 and 10.3% growth expected in 2016.

He was Prime Minister Haidar Al-Abbadi denied (26 June 2016), asked news on deduct part of staff salaries as a result of the memorandum signed by the Iraqi Government with the International Monetary Fund, pointed out that the Memorandum will provide financial support for Iraq worth 5.4 billion dollars over three years and an interest rate not exceeding 1.5%.


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