Iraq on way to bankruptcy, say experts
October 26 2017
11:22 PM
Iraqi experts have warned against a further decline in foreign reserves in Iraq due to the country's sole dependence on oil exports the Baghdad Post reported Thursday.

In a statement to the Baghdad Post, financial expert Mohamed Abdul-Rahman said, "Iraq's debts amounted to 120 billion dollars, and in light of fluctuation of oil prices, the reserve of cash may see a frightening retreat

He attributed the crisis to Baghdad's dependence on the export of oil as a major source of income

Iraq depends too much on the "unilateral economy" of the export of oil in the absence of development of other sectors, including agricultural and industrial, and all those reasons may push the reserve of cash to decline he said.

Abdul-Rahman added that Baghdad would face bigger crisis amid continued withdrawal of the Central Bank foreign reserves to address the growing budget deficit

Global declines in oil prices along with the country's consumption of third of the budget on monthly salaries have made the crisis even more worse

In the same context, economic sources confirmed that "Iraq is on its way to bankruptcy, and that the Iraqi government will be unable within two months to secure the salaries of state employees after they rely entirely on the Iraqi cash reserves, which is about to run out
They added that Iraq, since the era of former PM Nuri al-Maliki, has depended mainly on oil exports, neglecting other resources to improve its economy https://www.thebaghdadpost.com/en/sto...ts#section_236