A former official at the Central Bank: Money Box main Astnzvth expenses

26.03.2014 (0:01 pm)





Said senior economist and deputy governor of the Central Bank of the previous appearance of Mohammed Saleh, said the money fund Iraq's main it contains usually at about 18 billion dollars is enough necessary expenses and guaranteed for six months, while the decline in the amount currently, due to increased expenses, to a third, and spread concern among circles concerned, at the time you say informed sources that he is no longer the only four billion dollars.

He guessed that in favor of the government will not be able to control the budget deficit this year to the instability of the level of oil sales, but a member of the parliamentary Economic Committee played down fears of bankruptcy and pointed out that the current deficit is expected.

And the Development Fund for Iraq, DFI form under UN Security Council Resolution 1483 to protect Iraqi funds from international claims and pirated after the events of the year 2003.

It means the word of experts that Iraq lost relatively relaxed in expenses, and that any obstruction in the rates of export of oil or fluctuation in rates, will affect the ability of the faster government spending, amid unprecedented political crisis in the country.

The economist said Vice former Central Bank the appearance of Mohammed Saleh, the "long" that "Iraq builds the budget deficit by default, so that calculates the price of a barrel of oil at less than global prices of $ 15," stressing that "the funds in the Development Fund for Iraq, was an asset well can of which cover the deficit repeated in every budget. "

Saleh explained that "Iraq possessed between 2012 and 2013.18 billion in the fund dfi, and the amount is enough for the salaries of the staff of Iraq for six months," but he says that "between 2013.2014 - according to IMF data - fell to 6.3 billion dollars. "

He sees that "the expenses of Iraq on the rise over the past years, has been unable to achieve the level of export two million and 600 thousand barrels per day - according to Planned in 2013 - is a stable day, which caused a decline in the balance of Iraq in the Development Fund for Iraq."

The benefit of the reduced balance of Iraq in the Fund dfi index scary, especially since the budget deficit of between 30 and 40 billion dollars during the current year, stressing that Iraq will not be able to control the deficit, but that the "issue a daily 2.9 million barrels, after the agreement with the Kurdistan export 400 000 barrels, which is worth 16 billion dollars, and sell a barrel of oil at a price of $ 105, "but he questioned the ability of Iraq to stabilize the levels of sales, the price of oil, which sells when Iraq is far less than $ 105, also stresses the importance of reaching an agreement" quiet "with Kurdistan to export oil.

He also points out that the economic expert's lack of control of Iraq to the deficit in the current year budget, will lead to a reduction of investment projects and services, "which basically having problems annual deficit is settled on the road projects is carried out annually."

A report issued by the International Center for Development Studies, based in London, warned, bankruptcy of Iraq in three years because of the budget deficit, which now threatens the Iraqi oil sector is clearly, as I have indicated that the military operations in Anbar daily cost of $ 7 million.

 The former Vice President Adel Abdul Mahdi, said a few days ago that "the assets of the Treasury (DFI) decreased from (18.5 billion dollars) to the end of 2012 (6.5 m / d) end of (2013) .. and .. oil exports fell, reaching last December ( 2.341 m / b / d) and (2.229 m / b / d) in January, while the adopted budget (3.4 m / b / d) of which (400,000) barrels of Kurdistan.

fallen oil resources to January last to 7 billion dollars, after it was (7.4) billion dollars last December, according to the Ministry of Oil.

 remained oil prices up to (+100) dollars / barrel ..

and subtracting the expenses will not be much higher than the budget estimate ($ 90) ..

It is expected, "the IMF international "oil prices fell to 103 dollars / barrel in 2014 and 100 in 2015, while the minimum that meets the budget estimates is (106.1) U.S. $ / barrel for Brent.

Meanwhile, reduced member of the parliamentary Economic Committee, Qusay al-Abadi of fears the arrival of Iraq to the brink of bankruptcy, said the "long" that "fears Bankruptcy in Iraq is unjustified, especially since Iraq is still the issue of oil levels of seriousness," noting that "the month of February, Iraq could export 2.0006 million barrels a day."

The Abadi said that "Iraq puts oil money every month in the Development Fund for Iraq, and withdrawn on a monthly basis, but does not have stocks in the fund because of high costs," pointing out that the only year in which jammed our money in the fund dfi was in 2012, reaching amounts to 18 billion dollars.

And a member of the Economic Commission explains the presence of large amounts of 2012 in the Development Fund for Iraq, but "that year was not the spending and the disruption of a number of projects, so Iraq did not withdraw large sums from the reserve."

Asked Adel Abdul Mahdi, a former deputy president of the republic, in an article the newspaper justice "Do we go back to borrow also proposes to pay on credit and IMF special drawing rights, etc. ..

or increase our Treasury bonds, which are collected to borrow from the public .. or use, trespassing , the central bank reserves (77 billion dollars) ..

which also means violation of the laws and taken from the people, by causing the decline of the value of the dinar and rising prices, which will provide the liquidity that was what, Vlochehr is only a few. "


http://www.ahewar.org/news/s.news.asp?nid=1617002

Economist warns of loss of control over the budget deficit and Vice reduces fears of "bankruptcy" of Iraq



25/03/2014 23:33



Long-Presse / Baghdad

Expert warned prominent economist, on Tuesday, the loss of government control over the budget deficit the year 2014 the current, the instability of the oil sales rates and prices, which will lead to reduced investment projects and services that are experiencing problems essentially, calling for a "settlement quiet" between Baghdad and Erbil on file oil , while considered a member of the parliamentary Economic Committee, that the expected budget deficit, diminishing the risk of "bankruptcy" of Iraq.

The economist said the deputy governor of the Central Bank of the former, the appearance of Mohammed Saleh, said in an interview to the newspaper (range), said that "Iraq builds its budget deficit by default, as a result of considering the price of a barrel of oil is less than the global average of $ 15," noting that "the funds in the Development Fund for Iraq, it includes a good asset from which to cover the deficit repeated in every budget. "

Saleh added that "Iraq possessed between 2012 and 2013, amounted to $ 18 billion dollars in the fund DFI, it was enough for the employees' salaries for six months," adding, "but this amount decreased between 2013-2014, to six billion and 300 million dollars only , according to data from the International Monetary Fund. "

And saw an economist, that "expenses Iraq were on the rise during the past years, was unable to achieve the level of export of 2.0006 million barrels a day, as planned in 2013, about a stable, causing a decline in the tally in the Development Fund for Iraq," returned to "decrease in the fund balance of Iraq's DFI is an indication of scary, especially that the budget deficit of between 30 and 40 billion dollars, the current through the year 2014."

Salih stressed that "Iraq will not be able to control the deficit only through export 2.0009 million barrels of oil a day, after the agreement with the Kurdistan region to export 400 thousand barrels per day," noting that it "constitutes a value of 16 billion dollars, to sell Iraq a barrel of oil at a price of $ 105. "

Questioned the economic expert, in "Iraq's ability to ensure the stability of the level of sales of oil, and their prices, especially as currently less than 105 dollars," stressing the need to "come to an agreement with the Kurdistan Regional quiet on the mechanism for the export of oil."

Saleh promised, that "the lack of control of Iraq to the deficit in the current budget year 2014, will lead to a reduction of investment projects and services in facing the problems of an annual basis, especially to be settled through the project is implemented."

And the Development Fund for Iraq, DFI form under UN Security Council Resolution 1483 to protect Iraqi funds from international claims and pirated after the events of the year 2003. It means the word of experts that Iraq lost relatively relaxed in expenses, and that any obstruction in the rates of export of oil or fluctuation in rates, will affect the ability of the faster government spending, amid unprecedented political crisis in the country.

The Global Center for Development Studies, based in London, warned in a report of the possibility of bankruptcy Iraq within three years because of the budget deficit, which now threatens the Iraqi oil sector clearly, noting that the military operations in Anbar cost the treasury a day seven million dollars.

But a member of the parliamentary Economic Committee, Qusay al-Abadi, played down fears the arrival of Iraq to the brink of bankruptcy.

Ebadi said, in an interview to the newspaper (range), "The bankruptcy fears Iraq is unjustified, especially since he is still a serious issue oil levels," noting that "last February, Iraq has witnessed the export of 2.0006 million barrels a day."

The member of the parliamentary Economic Committee, that "Iraq puts the funds of its oil exports every month in the Development Fund for Iraq, and withdrawn a month as well, and there has confounded the fund because of high costs," noting that "the only year that jammed the money in the fund DFI was 2012, reaching amounts to 18 billion dollars. "

He attributed the Abbadi, the presence of large amounts in the fund in 2012, it "has not seen spending due to failure of a number of projects, and not having to withdraw large amounts of reserves."

The former Vice President Adel Abdul-Mahdi, said a few days ago, the balances of the Treasury (DFI) decreased from (18.5 billion dollars) to the end of 2012 (6.5 m / d) end of (2013) .. and .. oil exports fell in December, reaching last (2.341 m / b / d) and (2.229 m / b / d) in January, while the adopted budget (3.4 m / b / d), including (400,000) barrels of Kurdistan. And decreased oil resources to last into January (7) billion dollars, after it was (7.4) billion dollars last December, according to the Ministry of Oil. And oil prices remain around (+100) dollars / barrel .. and subtracting the expenses will not be much higher than the budget estimates ($ 90) .. It is expected, "the International Monetary Fund," the decline in oil prices to 103 dollars / barrel in 2014 and (100) in the 2015, while the minimum that meets the budget estimates is (106.1) U.S. $ / barrel for Brent.

Asked Abdul-Mahdi, in his article, newspaper (justice), you go back to borrow also proposes to pay on credit and IMF special drawing rights, etc. .. or increase our Treasury bonds, which are collected to borrow from the public .. or use, trespassing, central bank reserves ( 77 billion dollars) .. which means also in violation of laws and taken from the people, by causing the decline of the value of the dinar and rising prices, which will provide the liquidity that was what, Vlochehr is only a few. "


http://www.ahewar.org/news/s.news.asp?nid=1617003