Economist warns of loss of control over the budget deficit and Vice reduces fears of "bankruptcy" of

Economist warns of loss of control over the budget deficit and Vice reduces fears of "bankruptcy" of Iraq

03/25/2014


Expert warned prominent economist, on Tuesday, the loss of government control over the budget deficit the year 2014 the current, the instability of the oil sales rates and prices, which will lead to reduced investment projects and services that are experiencing problems essentially, calling for a "settlement quiet" between Baghdad and Erbil on file oil , while considered a member of the parliamentary Economic Committee, that the expected budget deficit, diminishing the risk of "bankruptcy" of Iraq.

--------------------------------------------------------------------------------



The economist said the deputy governor of the Central Bank of the former, the appearance of Mohammed Saleh, said in an interview to the newspaper (range), said that "Iraq builds its budget deficit by default, as a result of considering the price of barrel of oil is less than the global average of $ 15," noting that "the funds in the Development Fund for Iraq, it includes a good asset from which to cover the deficit repeated in every budget. "

Saleh added that "Iraq possessed between 2012 and 2013, amounted to $ 18 billion dollars in the fund DFI, it was enough for the employees' salaries for six months," adding, "but this amount decreased between 2013-2014, to six billion and 300 million dollars only , according to data from the International Monetary Fund. "

And saw an economist, that "expenses Iraq were on the rise during the past years, was unable to achieve the level of export of 2.0006 million barrels a day, as planned in 2013, about a stable, causing a decline in the tally in the Development Fund for Iraq," returned to "decrease in the fund balance of Iraq's DFI is an indication of scary, especially that the budget deficit of between 30 and 40 billion dollars, the current through the year 2014."

Salih stressed that "Iraq will not be able to control the deficit only through export 2.0009 million barrels of oil a day, after the agreement with the Kurdistan region to export 400 thousand barrels per day," noting that it "constitutes a value of 16 billion dollars, to sell Iraq a barrel of oil at a price of $ 105. "

Questioned the economic expert, in "Iraq's ability to ensure the stability of the level of sales of oil, and their prices, especially as currently less than 105 dollars," stressing the need to "come to an agreement with the Kurdistan Regional quiet on the mechanism for the export of oil."

Saleh promised, that "the lack of control of Iraq to the deficit in the current budget year 2014, will lead to a reduction of investment projects and services in facing the problems of an annual basis, especially to be settled through the project is implemented."

And the Development Fund for Iraq, DFI form under UN Security Council Resolution 1483 to protect Iraqi funds from international claims and pirated after the events of the year 2003. It means the word of experts that Iraq lost relatively relaxed in expenses, and that any obstruction in the rates of export of oil or fluctuation in rates, will affect the ability of the faster government spending, amid unprecedented political crisis in the country.

The Global Center for Development Studies, based in London, warned in a report of the possibility of bankruptcy Iraq within three years because of the budget deficit, which now threatens the Iraqi oil sector clearly, noting that the military operations in Anbar cost the treasury a day seven million dollars.

But a member of the parliamentary Economic Committee, Qusay al-Abadi, played down fears the arrival of Iraq to the brink of bankruptcy.

Ebadi said, in an interview to the newspaper (range), "The bankruptcy fears Iraq is unjustified, especially since he is still a serious issue oil levels," noting that "last February, Iraq has witnessed the export of 2.0006 million barrels a day."

The member of the parliamentary Economic Committee, that "Iraq puts the funds of its oil exports every month in the Development Fund for Iraq, and withdrawn a month, too, and there has confounded the fund because of high costs," noting that "the only year that jammed the money in the fund DFI was 2012, reaching amounts to 18 billion dollars. "

He attributed the Abbadi, the presence of large amounts in the fund in 2012, it "has not seen spending due to failure of a number of projects, and not having to withdraw large amounts of reserves."

The former Vice President Adel Abdul-Mahdi, said a few days ago, the balances of the Treasury (DFI) decreased from (18.5 billion dollars) to the end of 2012 (6.5 m / d) end of (2013) .. and .. oil exports fell in December, reaching last (2.341 m / b / d) and (2.229 m / b / d) in January, while the adopted budget (3.4 m / b / d), including (400,000) barrels of Kurdistan. And decreased oil resources to last into January (7) billion dollars, after it was (7.4) billion dollars last December, according to the Ministry of Oil. And oil prices remain around (+100) dollars / barrel .. and subtracting the expenses will not be much higher than the budget estimates ($ 90) .. It is expected, "the International Monetary Fund," the decline in oil prices to 103 dollars / barrel in 2014 and (100) in the 2015, while the minimum that meets the budget estimates is (106.1) U.S. $ / barrel for Brent.

Asked Abdul-Mahdi, in his article, newspaper (justice), you go back to borrow also proposes to pay on credit and IMF special drawing rights, etc. .. or increase our Treasury bonds, which are collected to borrow from the public .. or use, trespassing, central bank reserves ( 77 billion dollars) .. which means also in violation of laws and taken from the people, by causing the decline of the value of the dinar and rising prices, which will provide the liquidity that was what, Vlochehr is only a few.

[You must be registered and logged in to see this link.]