Iraq resorted to sell bonds to $ 6 billion or selling oil on credit to overcome the financial crisis

03/04/2015 (19:55)


BAGHDAD / long-Presse

Finance Minister Hoshyar Zebari said Iraq is considering several options to overcome the fiscal deficit, which is currently suffering from it, and these options are borrowing from government banks and the issuance of six billion dollars worth of loans, bonds, in agreement with international banks.

While the new Baghdad and Erbil's commitment to the agreement reached on the export of oil, expected to be the next round of talks between the two "difficult because of the crisis of confidence between them," and other factors.

Zebari said in an interview with Reuters news agency, on Tuesday, and followed up (range Press), "The ministry is looking for ways to cover the fiscal deficit by several means," noting that among the "issuing bonds or borrowing from state banks and the conversion of part of its assets deposited in the Central Bank to six billion dollars worth of loans, bonds agreement with Deutsche Bank and Citibank German American. "

The Finance Minister said that "the ministry is also considering the possibility of resorting to the prior sale of oil to get the money if the Council of Ministers refused to issue loan bonds, which extends for a period of ten years," noting that "the proposal to convert half of banks deposited state assets in the Central Bank of the bonds will save nearly five billion dollars. "
Zebari said that "Iraq will resort to special drawing rights enjoyed by for a billion and $ 800 million from the International Monetary Fund, as part of his quest all the means available to cover the projected shortfall in the current budget for the year 2015".

The House of Representatives, was passed, the end of January last financial budget for the current year, B119 trillion dinars, and a deficit of 25 trillion dinars, as a result of the decline in world oil prices and the repercussions of the war being waged against terrorism.

In the axis of his interview with Reuters, new Finance Minister Hoshyar Zebari, "the federal government and the Kurdistan Regional Government the agreement reached by the oil export commitment, despite differences over charged and reimbursements quantities," adding that there are "different expectations and a lack of trust, but the deal is still standing and discussions going on about. "

Zebari revealed on "The federal government convert 250 billion dinars to the Kurdistan region so far, are part of the required amount originally," and expressed hope that "the other premium pay off soon, especially that another round of talks will be held soon if the parties wanted to keep on their agreement." .

Federal Minister of Finance predicted that "the talks between Baghdad and Erbil difficult, because of the lack of trust between the parties," adding, "But the agreement between them will not collapse."

Reuters quoted, quoted officials as saying that "the Iraqi government headed by Haider al-Abadi, is that the interest rate (on bonds) amounting to nine percent is too high and unacceptable."

The agency said that "the Iraqi oil exports for the current year 2015, the rate remained below two million and 600 thousand barrels per day, due to the poor weather conditions when loading the main station south of the country, despite assurances Zebari on their increase."

It is noteworthy that the appearance of Mohammed Saleh, an economic advisor to the prime minister, Haider al-Abadi, said in an interview to the (long-Presse), earlier on Tuesday that the federal budget law for 2015, the current authorized the Minister of Finance issued remittances treasury or financial bonds to oil companies operating in Iraq , totaling no more than 12 billion dollars, indicating that the period of issuance and interest incurred by Mitrokan the Ministry of Finance.

Said Haider al-Abadi, head of the Council of Ministers, on Monday, on the sidelines of a meeting with the heads of the Kurdish forces blocks and a number of members of the National Alliance, that Iraq's enemies rejoice band of Iraqi political blocs, while stressed the need to adhere to the agreement of Baghdad - Erbil, called for the rejection of differences between political blocs.

The head of the Kurdistan Regional Government, Barzani, has confirmed, in 23 of the last month, the region's commitment to the Convention on the oil with Baghdad, and called on the federal government to abide by, while the accused "parties to disrupt the" implementation of the agreement, expressed his willingness to visit Baghdad again.

Agreed the federal and Kurdish governments in the (second from December 2014 the past), to allocate a portion of the allocations of Iraqi ground forces of the Federal to the Peshmerga forces, and to recognize the KRG 250 thousand barrels of oil per day in addition to the export of Iraq, 300 thousand barrels per day of Kirkuk.

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