*********Parliament warns of bankruptcy within two months if the government did not pass a budget

02.12.2014



 Baghdad / Mohammad Sabah

Called for financial and economic committees in Parliament, on Tuesday, to deal seriously with the IMF warnings on the expansion of government spending in Iraq, and its implications for monetary reserves.

Chairman of the Finance Committee stressed the need to reconsider the government spending plans, saying that the annual increase will lead to a distortion of the general budget and harm our resources of oil.

 Despite the warnings of the International Monetary described as "mere expectations," said the government threatened with bankruptcy and financial reserves run out within three months if they do not pass the budget.

Meanwhile, a predicted member of the Economic Commission to see oil prices drop significantly in 2014 due to the return of Iranian oil to markets, stressing that the budget lacks economic vision clear, due to the supervision of the people, "non-professionals", warning of prejudice reserve Iraq in the trunk of my father EFE or central bank money.

The International Monetary Fund has warned the Iraqi government to proceed with the implementation of its plans the spending for the year 2014, stressing that it will face inflation rates of the standard would lead to the depletion of the country's reserves of hard currency.

 "And pointed out the International Fund to the need for Iraq because oil is priced at $ 105 at the very least to be able to achieve balance the budget.

Commenting on that, says MP Haider al-Abadi, head of the parliamentary Finance Committee, that "the assessment of the International Monetary Fund to the government's plans the spending is just expectations may believe has been incredible," returned the calculation of the budget on the basis of 90 dollars per barrel of oil as "not too bad."

He said al-Abadi, the "long" yesterday, said, "but in the case of a collapse in the global economy then it is radically different," and believed that "reducing the price calculated per barrel of oil in the budget needs to deductions many of the expenses of the government," stressing that "you can not cut the salaries of employees not investment budget allocations nor the petro-dollar. "

He said the parliamentary Finance Committee Chairman "agreed with the IMF in terms of the need to reduce expenses and control is limited because our oil production, even in the export and hence the expansion costs will lead to a distortion of the budget." He warned that "failure to pass the budget would lead to the depletion of reserves the government during the months of May or June."

To a description of another member of the Finance Committee of the IMF report on government spending, as a "logical", arguing that "all the accounts of the Iraqi state and its resources dependent on oil revenues."

The MP said Dler Abdelkader told the "term", said that "Iran to restore its international standing and extraction of coal in large quantities in the U.S. will impact on oil prices," adding, "I expect a decline in oil prices in global markets, which will impact on the federal budget."

He believed Abdulkadir said that "Iraq can not fulfill the size of prices and quantities of oil estimated in the budget," likely to "face the oil revenues in the coming year a large deficit," stressing "the need to address this deficit before approving the budget in 2014 in order to avoid any economic disaster."

He said a member of the Finance Committee, saying "if it was the budget deficit of 50%, it required the state to declare bankruptcy," But he said, "ruled slump in oil prices below the $ 90." For his part, the Attorney Mahma Khalil, a member of the parliamentary Economic Committee, said that " budget estimates did not take the economic developments in the euro area and Southeast Asia and relations with Iran and the 5 +1 nuclear file and the accompanying breakthrough and production of OPEC oil. "

Khelil said, in an interview for the "long", saying that "economic vision that prepared the federal budget was foggy and unclear and did not put specialists and concerned," adding that it "is not a budget, but are just customizations."

He warned of a member of the Kurdistan Alliance, "exceeded the government or any other party on the reserve fund in Iraq DFI or the central bank," expressing his fear that "the decline in oil prices leads to expansion of the deficit significantly more than it is."


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