Parliamentary Finance: The government spent bank reserves and conditions of the International Monetary crisis will make us

History of edits:: 2015/11/14 8:32

Parliamentary Finance Committee said, the government spent stockpiling reserves in state banks and the International Monetary conditions Sdnouk will make us into a financial crisis.
According to the Commission's decision Ahmed al-Haj told all of Iraq [where] that "the 2016 budget is based on the source oil revenues, the amount of 3.6 million barrels per day," explaining that "the Department of exports come from the Kurdistan region is equivalent to 550 000 barrels divided into two parts 250 000 barrel from the region and 300 thousand barrels through the Kirkuk fields. "

He added that the "allocated to the province, the budget is 17% of the budget, but there are limits and restrictions, including actual spending," noting that "in the case of lack of commitment by the province to deliver oil to SOMO, the company the government will not abide by any agreement to Kurdistan," explaining that "the financial budget for the year 2016 is a clone of its predecessors in 2015 ".

Haj and pointed out that "the government may resort to loans, but in the case of increasing interest, Iraq would accept a big financial and economic crisis," noting that "one of the conditions of the International Monetary Fund to borrow is to force the government to raise support for the citizens."

He added that "Iraq is able to overcome the financial crisis through austerity and internal borrowing from banks because they are free of interest," noting that "no stock of reserves for banks to exchange it by the government."

The International Monetary Fund hinted last Wednesday, a large loan for Iraq removal of subsidies on fuel requirement.

The head of the IMF mission, to Iraq's Christian Gooch last Wednesday, that "the IMF is expected to gross domestic product of Iraq recorded growth of 1.5 percent this year due to increases in oil production and that the deficit in the current account rising to 7 percent of gross domestic product." .

It is said that, to get a loan from the International Monetary Fund will help Iraq OPEC member to achieve the financial stability to the conditions while suffering because of falling oil prices and the costs associated with fighting the terrorist organization Daash.

He informed a senior IMF official said last month that the new loan will be the largest of Iraq "several times" of the emergency funding of $ 1.24 billion, the Fund has agreed to be submitted in July.

And any large loan from the IMF for Iraq will come from conditions such as Baghdad steps to cut energy subsidies [include hydrocarbons such as benzene, fuel, etc.] and the reform of state-owned enterprises which steps may be difficult at the political level.

The House of Representatives has ended in its last Tuesday, the first reading of the draft 2016 budget law Baardat estimated at more than 83 trillion dinars, compared to 106 trillion dinars as expenditure against a deficit of 22 trillion Danar.

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