[ltr]2020.05.01 - 12:18[/ltr][/size]
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[size=20][size=20]Baghdad - people
The head of the Parliamentary Finance Committee, Haitham al-Jabouri, revealed, on Friday, the scenarios that the government will resort to in order to provide salaries for employees in the event of a continuing collapse in oil prices, while warning of the collapse of the Iraqi dinar in the event of "tampering with" the currency reserves in the central bank.
Al-Jubouri said in statements followed by "Nass" (May 1, 2020), for the "shortest path" program presented by colleague Nabil Jassem, "The world’s need for oil before the Corona crisis is 70 million barrels per day, while the world offers 100 million barrels, there is an increase The supply is estimated at 30 million barrels per day before the arrival of the Corona crisis. "
Al-Jubouri added, "OPEC controlled 80% of the global oil market, but now it controls only about 25% of the market. Therefore, its measures to stop the collapse of prices are no longer meaningful," noting that "55% of the oil storage capacity" In the world, it was filled with the stop of factories and the large supply. "
On the concerns of stopping the sale of Iraqi oil, Al-Jubouri said that "96% of Iraq’s financial revenues are from oil, while taxes and customs are zero at the present time as a result of their closure," explaining that "the Iraqi barrel of oil is now sold for less than $ 20, meaning that Iraq He may only get 25% of the revenue in 2019 during this year. "
And Jubouri said, "Iraq receives its revenue after 60 days of sale, so the state has not yet absorbed the blow of decline," noting that "the recent meetings between the relevant authorities and the Parliamentary Finance Committee ended that what is required to provide salaries and debts that must be paid requires providing At least 72 billion dollars. "
The Chairman of the Parliamentary Finance Committee pointed out that "Iraq needs $ 7 billion a month as the minimum for securing salaries, while the net sale of oil barrels does not exceed 8 dollars only," explaining that the size of the salaries of employees rose from 40 trillion dinars in the past year to 52 trillion Dinar due to "unlawful release of contracts and appointments by the government of Adel Abdul Mahdi."
Haitham al-Jubouri said, "The salaries of employees for the month of May are insured, but there are indications of a significant decrease in revenue during the next two months (June and July)," noting that the Finance Committee has put in place urgent and reformative solutions to ensure the continuation of employee salaries.
Al-Jubouri revealed that there are 4 urgent solutions to secure a monthly fund of $ 7 billion, which are:
- Withdrawing the excess liquidity from some banks.
- Breaking the $ 4.4 billion Iraq deposit related to the purchase of American weapons.
Borrowing from the International Monetary Fund by $ 2.2 billion.
- National bonds between the central bank and Iraqi banks can solve 40% of the problem.
Al-Jubouri said, "These solutions can secure Iraq financially for the next four months," expecting "oil prices to move to more than $ 30 a barrel after Trump's statement and his threat to Saudi Arabia."
Al-Jubouri stressed that paying the salaries of the employees without borrowing requires selling one barrel of Iraqi oil at $ 71, noting that there are medium-term solutions that may contribute to alleviating the crisis if the government begins it now.
He explained, that the solutions include "the automation of border border customs, which has an annual revenue of about 9 billion dollars, from which Iraq currently only receives 1.5 billion, as a result of waste, corruption, and the control of factions and influential parties."
And on the hard currency reserves in the Central Bank of Iraq and the possibility of tampering with it to overcome the crisis, Jubouri said that "Iraq has a reserve of hard currency in the central bank estimated at 81 billion dollars," noting that "the minimum required in the bank's reserves is 52 billion dollars to ensure that the currency does not collapse ".
Al-Jubouri also stressed that “ministerial orders issued to appoint people after December 31, 2018 are considered invalid due to the lack of legislation in the budget law,” explaining that some suggested reducing employee salaries but the committee did not support that option, without excluding deduction from employee salaries during the months Coming.
Al-Jubouri pointed out that "the poor planning of the Adel Abdul Mahdi government contributed to the aggravation of the crisis," noting that "many tragedies await the next government team on the economic, health and security levels."
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