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Only lifeline in Iraq .. drop in oil prices in the country spewing a severe financial crisis
18-11-2014 10:47 AM
Iraq is heading in the current year to register the largest budget deficit in its history, up to about $ 60 billion, despite the non-payment of allowances of the Kurdistan region and stop the provincial allocations, which fell under the control of Daash.
Iraqi Oil Minister Adel Abdul-Mahdi acknowledged yesterday the big effects of the decline in world oil prices on the Iraqi budget, which is mainly dependent on oil revenues.
He said that prices fell at a rapid pace and lost nearly $ 40 per barrel of value, since peaking this year in mid-June.
Mahdi stressed by hosting a session in Parliament yesterday that "the most important factors of lower oil prices is an increase in shale oil production and increasing oil production in some African countries.
He added that those factors were offset by lower global demand and declining growth rates in some Asian countries, which goes to more than half of Iraq's oil exports, in addition to the global stock of oil rising in most industrialized countries.
The minister ruled out "a rapid rise in oil prices during the current period, despite attempts to ensure the stability of the oil market or to achieve a relative rise in prices occurs.
Haider al-Abadi: The government will follow the policy of austerity in unnecessary expenses
He said that "the price of oil expected to be counted in the construction budget for 2015 will appreciate by about $ 80 per barrel, although the improved performance of the Iraqi economy will depend on the correct guidance of financial resources through compression unnecessary expenditures." He said that the agreement with the Kurdistan Regional Government on the export of 150 thousand barrels per day is not associated with the granting of the amount of money compared to the amount of oil, but an important agreement for the purpose of resolving the differences between the government and the Government of the Territory.
He predicted that the agreement provides the region with new revenue for the Iraqi budget through the export of 150 thousand barrels of oil to the Turkish port of Ceyhan to calculate the Iraqi government.
He added that "Iraq and its resources will be affected by OPEC to cut production, despite the lack of full commitment to the decision of the organization." It seems that the agreement did not cover the amount of $ 2.87 billion, compared to the region obtained by exporting 34.5 million barrels abroad since the beginning of the current year.
Government intends to Erbil and considering those resources part of their share of the state budget amounting to 17 percent, because of the outstanding differences that existed with the former Prime Minister Nuri al-Maliki. And those differences have led to the adoption of the faltering current year budget, which was estimated at about $ 150 billion, the highest budget in the history of the country.
And remained in the drawers of the budget that the House of Representatives, which has stopped trying to approval because of the approaching end of the year.
And built on those distressed price of $ 90 a barrel, the budget adopted by 93 percent of oil revenues under the production of 3.4 million barrels per day. The government has been unable to reach any of those goals.
Experts stress that Iraq spent all oil export revenues, achieved during the first seven months of the year, although he did not pay the dues of Kurdistan, and the amounts allocated to Basra petrodollars, nor most of the financial obligations of the provinces that fell under the control of the organization, "Daash." The lack of adoption of the 2014 budget, the announcement of three Iraqi provinces of Karbala and Anbar and Maysan bankruptcy, and stop the implementation of all projects.
Hoshyar Zebari: likely differences Erbil and Baghdad relayed to 2015 budget
Iraq faces in the current financial year, the largest deficit in the budget up to about $ 60 billion, Danger lies in how to repay the deficit in the current circumstances, with the continuation of military operations and the decline in oil production.
The government is facing difficulty in resorting to borrowing from financial markets and international financial institutions, which do not have to use only the reserves of the Central Bank amounting to about $ 80 billion, which the IMF warned of resorting to it.
And bowed Prime Minister Haider al-Abadi to acknowledge that the government will follow the policy of austerity in unnecessary expenditures, because they "can not afford to fall short in the military effort and salaries and basic services to the citizens."
He said Finance Minister Hoshyar Zebari said the ministry will work on the preparation of the 2015 budget and to expedite the approval. He stressed that the large fiscal deficit problem, have not had a chance to the Council of Ministers to discuss the problems of Kurdistan oil with the federal government and resolved, likely "deported disagreements Erbil and Baghdad to the 2015 budget year."
The estimated loss of the Iraqi oil sector between July and October of about $ 16.3 billion, divided between $ 12 billion due to the drop in oil prices in the global markets, and about $ 4.3 billion due to stop production fields in the provinces of Kirkuk, Nineveh and Salahuddin.
Oil sector was also affected control "Daash" on the amounts of the production, is likely to increase with the size of the losses continued confrontation to the next year.
The current financial situation will force the postponement of the increase in oil production projects, Iraq, where he was aspiring to be increased by about 900 thousand barrels per day, up to the borders of 4 million barrels per day.
It seems that the political, security and military developments freeze those plans, to limit spending mainly in the military operations, Iraq to continue its dependence on the Basra area, which is estimated at 2.58 million barrels per day exports.
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18-11-2014 10:47 AM
Iraq is heading in the current year to register the largest budget deficit in its history, up to about $ 60 billion, despite the non-payment of allowances of the Kurdistan region and stop the provincial allocations, which fell under the control of Daash.
Iraqi Oil Minister Adel Abdul-Mahdi acknowledged yesterday the big effects of the decline in world oil prices on the Iraqi budget, which is mainly dependent on oil revenues.
He said that prices fell at a rapid pace and lost nearly $ 40 per barrel of value, since peaking this year in mid-June.
Mahdi stressed by hosting a session in Parliament yesterday that "the most important factors of lower oil prices is an increase in shale oil production and increasing oil production in some African countries.
He added that those factors were offset by lower global demand and declining growth rates in some Asian countries, which goes to more than half of Iraq's oil exports, in addition to the global stock of oil rising in most industrialized countries.
The minister ruled out "a rapid rise in oil prices during the current period, despite attempts to ensure the stability of the oil market or to achieve a relative rise in prices occurs.
Haider al-Abadi: The government will follow the policy of austerity in unnecessary expenses
He said that "the price of oil expected to be counted in the construction budget for 2015 will appreciate by about $ 80 per barrel, although the improved performance of the Iraqi economy will depend on the correct guidance of financial resources through compression unnecessary expenditures." He said that the agreement with the Kurdistan Regional Government on the export of 150 thousand barrels per day is not associated with the granting of the amount of money compared to the amount of oil, but an important agreement for the purpose of resolving the differences between the government and the Government of the Territory.
He predicted that the agreement provides the region with new revenue for the Iraqi budget through the export of 150 thousand barrels of oil to the Turkish port of Ceyhan to calculate the Iraqi government.
He added that "Iraq and its resources will be affected by OPEC to cut production, despite the lack of full commitment to the decision of the organization." It seems that the agreement did not cover the amount of $ 2.87 billion, compared to the region obtained by exporting 34.5 million barrels abroad since the beginning of the current year.
Government intends to Erbil and considering those resources part of their share of the state budget amounting to 17 percent, because of the outstanding differences that existed with the former Prime Minister Nuri al-Maliki. And those differences have led to the adoption of the faltering current year budget, which was estimated at about $ 150 billion, the highest budget in the history of the country.
And remained in the drawers of the budget that the House of Representatives, which has stopped trying to approval because of the approaching end of the year.
And built on those distressed price of $ 90 a barrel, the budget adopted by 93 percent of oil revenues under the production of 3.4 million barrels per day. The government has been unable to reach any of those goals.
Experts stress that Iraq spent all oil export revenues, achieved during the first seven months of the year, although he did not pay the dues of Kurdistan, and the amounts allocated to Basra petrodollars, nor most of the financial obligations of the provinces that fell under the control of the organization, "Daash." The lack of adoption of the 2014 budget, the announcement of three Iraqi provinces of Karbala and Anbar and Maysan bankruptcy, and stop the implementation of all projects.
Hoshyar Zebari: likely differences Erbil and Baghdad relayed to 2015 budget
Iraq faces in the current financial year, the largest deficit in the budget up to about $ 60 billion, Danger lies in how to repay the deficit in the current circumstances, with the continuation of military operations and the decline in oil production.
The government is facing difficulty in resorting to borrowing from financial markets and international financial institutions, which do not have to use only the reserves of the Central Bank amounting to about $ 80 billion, which the IMF warned of resorting to it.
And bowed Prime Minister Haider al-Abadi to acknowledge that the government will follow the policy of austerity in unnecessary expenditures, because they "can not afford to fall short in the military effort and salaries and basic services to the citizens."
He said Finance Minister Hoshyar Zebari said the ministry will work on the preparation of the 2015 budget and to expedite the approval. He stressed that the large fiscal deficit problem, have not had a chance to the Council of Ministers to discuss the problems of Kurdistan oil with the federal government and resolved, likely "deported disagreements Erbil and Baghdad to the 2015 budget year."
The estimated loss of the Iraqi oil sector between July and October of about $ 16.3 billion, divided between $ 12 billion due to the drop in oil prices in the global markets, and about $ 4.3 billion due to stop production fields in the provinces of Kirkuk, Nineveh and Salahuddin.
Oil sector was also affected control "Daash" on the amounts of the production, is likely to increase with the size of the losses continued confrontation to the next year.
The current financial situation will force the postponement of the increase in oil production projects, Iraq, where he was aspiring to be increased by about 900 thousand barrels per day, up to the borders of 4 million barrels per day.
It seems that the political, security and military developments freeze those plans, to limit spending mainly in the military operations, Iraq to continue its dependence on the Basra area, which is estimated at 2.58 million barrels per day exports.
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