##### Minister of Finance: borrow to pay off the petrodollar if Parliament approved the issuance of bonds and the most likely to avoid deficit

Minister of Finance: borrow to pay off the petrodollar if Parliament approved the issuance of bonds and the most likely to avoid deficit

 
   Published on Thursday, 23 December / 2 January 2014 13:49



BAGHDAD / Center Brief for the Iraqi Media Network (IMN) - The Minister of Finance Agency purity of net debt, the government would borrow 9 trillion dinars to repay the funds petro dollars allocated to the provinces, if approved by the House of Representatives, stressing that the allocation of petro dollars acquired right and the government is obliged to reimburse remains debt in the case of lack of funds.



He suggested in an interview with the private Center Brief for the Iraqi Media Network (IMN), the issuance of bonds to cover the budget deficit, estimated at 23 trillion dinars.





The following is a transcript of the interview:

IMN: Let's start from the debate petro dollars, why did not Tdauha in the draft budget?



Net: dollars five Petro dollars acquired right to the provinces and not the prerogative of the government to change a constant, whether we have mentioned in the budget or not remind him, and previously when he was a customization one dollar, the petro-dollar decision of the Council of Ministers so he ensures that the budget law to proceed is implemented, but now we have a code number 19, which amended the provincial law No. 21, which approved the allocation of five dollars to the provinces producing oil for every barrel produced every barrel filtered, and for each 150 cubic meters produced from the gas, and this law fixed permanent and clear and must be implemented, and who talked about that, and who talked about we we re-allocation of petro dollars to one dollar, not Bdqiqin, and we have new paragraphs on Sndifaa five dollars to the budget law, the guest ambiguous part of the budget to block the way for stalkers in the murky water, and do not stay for the field of political intimidation.

IMN: Why did not translate the beginning of this acquired right in the draft budget to the current year budget?



Net: failure to allocate five dollars in the budget law does not mean they will be banned, even if the money can not be given back to the Treasury, the allocation of petro dollars stays where it acquired right, usually translated through the accounts of speculative production and filtering in each province, and set amounts of discretionary the budget is then at the end of the year the expense of production and liquidation of actual, and is the process of reviewing, Value is the total amount of petro dollars is 9 trillion dollars, but we put 2 trillion just the equivalent of the amount that is calculated for them in the last year according to the calculation dollars per barrel did its disposal provinces, and will remain their right to the content in the five dollars they acquired rights to it acquired rights a religion on the government, and if there is no money by 9 trillion Snguetred but borrowing subject to approval by Parliament, because this year's budget is facing difficulties, including the revenue assumed in the past year, calculated revenue 9 trillion dinars of exports Oil Kurdistan region but the region has not given us this money, even though the government paid the region's share in the budget.

IMN: So if you ye have received about nine trillion dinars from Kurdistan to Adtrrtm to defer dues petrodollars?



No this is not necessarily linked inevitable, because the budget deficit did not go away even if the province pay full dues.

IMN: Do you agree with me that the ministry Tsenmk proxy accounts linked to the budget that you changed?



Net: I do not know.

IMN: Thank you for this smile, but who knows?



Net: I do not know who said it has issued a fatwa.

IMN: how the ministry dealt with the budget deficit?



Net: We relied on oil by 93%, and we relied on taxes and fees by 7%, did not exceed our revenues the state at 140 trillion dinars, Pima our preliminary estimates of the spending total allocations of ministries and provinces with Alaptrodola Tjazat 200 trillion, we were forced to reduce expenditure and made ​​it about 163 trillion leaving a deficit of about 23 trillion, and know the necessity of a balance between revenues and expenditures in the budget, and when we have a deficit we have to show the way funded, and here we say that we finance the deficit of funds in the Development Fund for Iraq and found little amount does not exceed seven trillion of the dinar, and thus we are forced to borrow of the International Monetary Fund, and the use of special drawing rights from the World Bank estimated Petrleonin dinars, as well as expectations of increased production teams and increase prices, and if prices do not rise we will resort to the issuance of securities and sell them, and be part of the public debt.

IMN: Ptkadirk, you Stljún for this option?



Net: Yes, most likely because this year we have a problem.

IMN: Where to resolve the dispute with the Kurdistan?



Net: disagreement with the Kurdistan befuddled budget, now we have built a budget to calculate the revenues of 400 thousand barrels of exports from the Kurdistan region which is estimated at $ 16 trillion and a half, under the current budget share of the region are also estimated at $ 16 trillion and a half, if not enter the region this amount of oil revenues will get deficit further in the budget by the share of the region, and so will the deficit to 39 trillion dinars, we addressed us Kurdistan region quite frankly, that if they did not pay income of 250 thousand barrels as agreed in the last year, and then threatened us hold them accountable and non-payment and then we give them in the end but this the public can not, because the provinces of petro dollars embarrass the government and the press to take the dues, as we are keen to pay the rights of the citizens of the region.

IMN: Is it close to the horizon to resolve the dispute?



Net: now closer to the settlement of the dispute with the territory, and there are fears of the non-fulfillment of the government and we said that it is their right to fear it is our duty to remove these fears, Talibona expenses of production of $ 6 trillion, and we do not mind, but we asked them to provide us with billing to be audited by the Office of financial control, but they did not submit these invoices, We proposed solution to end the problem of production expenses, that bears the region production expenses of its stake in the budget, the federal government paid the expenses of production in the rest of the provinces of 83% of the budget, and so are production costs become far from sovereign expenditure, and within ordinary expenses, and in this case would be the share of the Kurdistan region of 19.9 trillion because it will ensure the production expenses, decreased with the remainder of the country.

IMN: What's the use?



Net: Interest will be realized in the long term in the coming years will be reduced production expenses with the exception of the Kurdistan region, because its contracts sharing contracts, but we put controls should be to be export by marketing company National Oil (SOMO), and be in the company's board members of Kurdistan and all producing provinces, but even put representatives in export centers, the coordination is achieved by demanding that the province.

IMN: What about funding?



They demanded that the funds Region's exports within the quota, so we agreed, but we stipulated that the implementation of Iraq's obligations towards the UN Security Council that go all the revenues of the Iraqi beginning to the Development Fund for Iraq, to be deducted Kuwait's share, then the Central Bank to withdraw the amount and we we convert it into a branch In Erbil, provided that not more than their share of assessments in the budget, and then will come the liquidation, and the proportion in liquidation also Estelmoha and Iraq will be a single, When the ratio is filtered 15% or 16%, and if it became they need less of this, it is their right to issue what is left and take revenue, and if they agree to this formula, it will be presented to the Cabinet for amending some of the texts.

IMN: So when are recognizing the budget?



I expect that the budget will be approved within days, and if approved, the budget will be approved after some editing of texts, and we are keen to finish on a formula showing Iraq are sovereign in front of the outside, and the remaining details with us at home, but may not be issued alone may not be receiving revenue alone .

IMN: If so, why do not you demand revenues of 250 thousand barrels agreed to pay in the past year?



Net: Oil Ministry of Finance sent a book stating that the amount did not arrive and the Ministry of Finance has, documents that the region must pay this amount but pay other amounts owed ​​to the province and must be settled, but the subject is subject to negotiations.

IMN: Ok economically supposed to be an annual financial budget plan, where is the harmony between the budget and the five-year development plan?



Harmony only on paper, but in the implementation shows that our budget is still stereotyped and traditional.





IMN: Is not it time for the preparation of the budget in a manner programs, to achieve better efficiency?



We did not get this up to now, and there is another problem hindering the achievement of economic efficiency, which is the politicization of economic issues, and you noticed what happened to prevent the passage of the infrastructure that had been hoped by speeding up the development process by accelerating the benefits and postpone the costs, payment system on credit as well as contracting with international companies sober.

IMN: Why did not Tstthmron the remaining funds in the ministries and provincial budgets of the past, which is more than the amount you requested to finance infrastructure projects?



This can not be because the remaining funds earmarked for projects list.

IMN: List a few years ago and failed?



Both are not enough, but maybe your words will be achieved in the funds that accumulate projects petro dollars, Basra is, for example, have large amounts of petro dollars did their disposal.

IMN: the students are waiting for news about giving them accurate, you will be paid in the current year?

Yes will be disbursed this year as exists in the budget.



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Finance Minister : Government plans to borrow to pay the allocations of petrodollars
   

1/25/2014 0:00

Likely to pass the general budget of the country during the next few days

Baghdad morning

The Minister of Finance Agency purity of net debt , the intention of the government to borrow 9 trillion dinars to repay the funds petro dollars allocated to the provinces , if approved by the House of Representatives , stressing that the allocation of petro dollars acquired right and the government is obliged to reimburse remains have them in the event of lack of funds .

He guessed the net in his speech for the " Center Brief for the Iraqi Media Network ," the issuance of bonds to cover the budget deficit, estimated at 23 trillion dinars , noting that this year's budget is facing difficulties , including the revenue assumed in the past year, calculated revenue 9 trillion dinars from oil exports of the Kurdistan region but region did not give this money , even though the government paid the region's share in the budget.

And how to handle the Ministry of Finance with the budget deficit , noted Net that the ministry relied on oil by 93 percent , and taxes and fees by 7 percent , did not exceed the state revenue of 140 trillion dinars , while the initial estimates of the spending total allocations of ministries and provinces with petrodollars exceeded 200 trillion , and it has been reducing the expenditure up to the limits of the 163 trillion and the deficit remained at about 23 trillion dinars.

He guessed Minister option of borrowing from the International Monetary Fund , and the use of special drawing rights from the World Bank estimated Petrellna dinars , as well as expectations of increased production teams and increase prices to cover the deficit , noting that in the case did not rise prices will be resorting to the issuance of securities and sell them to be part of the public debt , pointing out that the deficit financing of the funds in the Development Fund for Iraq was not enough because the amount does not exceed seven trillion dinars .

predicted net that is approving the budget within days , stressing at the same time that the student grants will be disbursed during the year as provided it in the budget.

And financial problems with the province , Safi said that " the dispute with the Kurdistan confused budget ," he said, adding that this year's budget was built on the calculation of revenues of 400 thousand barrels of exports from the Kurdistan region which is estimated at $ 16 trillion and a half trillion dinars , pointing out that in the event did not enter region this amount of oil revenues will further deficit in the budget by the region's share , noting that the administration of the province did not pay income 250 thousand barrels agreed last year .

He Net hope for the imminent settlement of the dispute with the region , especially after the proposal, which stipulates that bear territory production expenses of its stake in the budget , the federal government paid the expenses of production in the rest of the provinces from 83 percent of the budget , and so the cost of production is far from sovereign expenditure , and within ordinary expenses , and in this case would be the share of the Kurdistan region of 19.9 trillion because it will ensure the production expenses .

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