Finance Minister warns of serious economic repercussions
two hours ago
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The Minister of Finance, Ali Abdul Amir Allawi, warned Saturday evening of serious repercussions that may affect the Iraqi economy if the US embassy actually withdraws from Iraq.
Allawi said in a televised statement that "the application of the decision to withdraw the US embassy from Iraq has serious repercussions on the Iraqi economy," indicating that 90% of the Iraqi reserve is deposited in the American Federal Bank, as there are other countries that will withdraw from Iraq, and the decision will affect the work of international financial institutions. With the support of Iraq ”.
The Iraqi Minister of Finance added that "the withdrawal of the US embassy from Iraq will affect the activities of the Iraqi financial institutions and scrutinize their work. It will also affect the credibility of foreign foreign investment and affect the work of American companies in Iraq and also the activities of other international companies."
Allawi warned that "America has a great influence on global financial institutions and that foreign investment will be greatly affected in the absence of American support for Iraq."
The Iraqi minister continued, saying: "The problem between the federal government and the Kurdistan region arose as a result of the export of crude oil by the regional government, and that oil imports and border crossings must be returned to the federal state, and that the decline in oil prices is the cause of the financial dispute between Baghdad and the region."
Allawi went on to say: "The Kurdistan region's oil imports are unclear, and that the Kurdistan Regional Government pays large wages for the production and export of oil to foreign companies participating with the region, and that the region has an external financial debt to oil companies."
The Iraqi Minister of Finance stated, “The federal budget for Iraq for the year 2021 may not allow new appointments to be made in light of the current financial peace, and that the budget will depend on rationalizing the electricity and oil sector and expanding taxes on income, and that financial allocations above salary must be at an acceptable rate and that 150% is an acceptable rate for allocations. Above salary. ”
Allawi pointed out that "the cash reserve in Iraq currently ranges between 53 and 55 billion dollars, and this reserve is sufficient to meet the expenses for about 6 months."
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