Parliamentary Finance: Lower oil price will push the government to borrow abroad
15:41 - 28/08/2019
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BAGHDAD (Reuters) - A drop in the sale price of a barrel of oil will prompt the Iraqi government to borrow abroad during the preparation of the federal budget bill for 2020, the parliamentary finance committee said on Wednesday.
Committee member Hanin Kaddou said in a statement to the information, that "the decline in the sale price of a barrel of oil below $ 50 will push the government towards external borrowing to address the expected deficit," pointing out that "the government is still determined to adopt the sale price of oil barrel $ 56 within the 2020 budget ”.
He added that "the adoption of the price of 56 dollars will put the country in front of a serious financial crisis in light of the decline in oil prices globally," noting that "Parliament will go to reduce the price to 46 dollars to avoid the risk of fiscal deficit and high external debt of [You must be registered and logged in to see this link.]
Oil expert Hamza al-Jawaheri predicted last week that world oil prices would fall below $ 50 per barrel, while the government warned against the adoption of $ 56 to sell a barrel of oil in the draft federal budget law for 2020.