Reduced government spending policy

Reduced government spending policy

5/11/2016 0:00

Adnan Kanani

confirm most of the international official reports and economic analyzes on the continuing decline in world oil prices until the year 2020.oiatmd Iraq entirely on imports of selling its oil on the world market to cover general expenses specified in the annual general budget.

It is necessary to continue the austerity and pressure government spending to meet the requirements of the policy services, salaries and support for security forces to confront the gangs «Daesh» terror.

It is certain that the government continued to reduce the size of spending to significant levels in the draft budget for 2017 in order to continue to perpetuate the work of state and reduce dependence on oil revenues in order to strengthen the national economy and sustain the momentum of life.

government this year I expected 2016 deficit of 25 billion dollars in budget size of $ 100 billion, and it needs the proceeds bonds to pay salaries and fund infrastructure projects in the gas, oil, electricity and transport sectors.

but informed sources in this aspect specifically, she said that investors demanded very high returns which it will carry Iraq 's heavy financial burdens.

Iraq has failed to collect two billion dollars from the global debt markets, by launching an international government bonds, to bridge the budget deficit gap as a result of lower oil prices, because the US Congress refused to guarantee half the value of the bonds. the

government said earlier it is seeking to issue bonds worth billion dollars the United States contained entirely in order to reduce debt costs before issuing other bonds worth billion dollars, and in the framework of the state budget in 2017 , which enjoys the support of the international Monetary Fund, and within this context , the Ministry of Finance said at the time: Iraq halted his plans to issue an international government bonds. On the other hand , said the Ministry of Finance: Iraq halted its plans to issue international bonds that the yield to be paid will be too high, and the former finance minister , Hoshyar Zebari , «ordered a halt to bonds because the interest rate will be high». It should be noted that Iraq has held several meetings with investors in Europe and the United States in an effort to promote this version of international government bonds planned, where he aspires to collect about two billion dollars from an initial denominated in US currency issuance ( the dollar) in the framework of the versions of the series was the will to six billion dollars.

to confirm credibility has told the Finance Committee rapporteur in parliament that the former Finance Minister Zebari has told the Finance Committee (that it is very difficult to accept the payment of dividend of up to 11.5 percent on the bonds two billion dollars).

and assigned to Iraq 's three major banks process the order are all from ( Citigroup, Deutsche Bank, and JP Morgan Chase) , but many of the institutional investors reluctant to risk.

An official at a European investment company: the »outlook for pricing Iraqi bonds were not identical. It is an exporter of oil and activates the organization Daesh on its territory, and this has had a negative impact on the bond deal, as well as a decline in global oil prices.

Iraq hopes to increase crude production even more in the next year , 2017 looks to sell record amounts of oil to buyers from the southern export terminal .

Iraq has seen growth exceeded expectations in production over the past year in 2015 has contributed to the glut of global supply that has worsened after Saudi Arabia 's decision largest member of the OPEC not to cut production in order to defend market share in the face of producers Mrtfie cost non - members of the organization.

«the plan Iraq index new to the top Organization of Petroleum exporting countries members (OPEC) will not budge in their bid to protect market share rather than curbing supplies to support prices.

In view of the government is required to take new measures to pressure government spending , especially the three presidencies and privileges of the ministers and members of parliament to provide new financial returns appointed to pass this suffocating financial crisis as a result of lower oil prices , the only independent source of Iraq to continue the momentum of life.