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Finance Minister of Kurdistan (Middle East): Our doors are open to the Gulf states to invest
Wed Dec 31 2014 02:51 | (Voice of Iraq)
The Finance Minister said the economy in the Kurdistan Regional Government Rebaz Mohammed lambs, that the region over the economic situation of difficult during 2014; due to the deterioration of relations between Erbil and Baghdad, and pointed out that the current agreement between the two capitals will enter the scope of application with the beginning of next year, 2015, and in dialogue with «Middle East »that the province will work to increase oil production and exports, and delivered to the highest levels, stressing that the doors are open territory for the Arab Gulf States and all other countries of the world to invest in all areas in Kurdistan. Lambs and confirmed that the province has spent $ 45 million of its oil imports to the displaced. And to dialogue Details
* Where did the economic crisis in the region?
- The economic situation in the region over the complex period of a difficult phase, since the beginning of the current 2014 the federal government in Baghdad, the region's share of the 17 percent budget cut, and with this procedure, the economic crisis in the region began, and after entering the organization Daash to Iraq at the beginning of June (June ) the past, the economic crisis in the region has become more profound, which weighed on the entire spectrum of the people of Kurdistan.
With the expansion of the battle with the «Daash», the Region has a large wave of displacement, where the number of displaced people who entered the territory of more than 1.5 million people, and this was born pressure on the region of the economic and financial point of view, represented expenses Peshmerga forces fighting «Daash» along the borders of 1050 km, and expenses of the displaced to provide food, water and medicine, and the camps and security for them .. which shed considerable pressure on the economic situation.
And then reach the region to deal with the federal government in Erbil represents the export region of 150 thousand barrels of oil per day, compared to send Baghdad billion dollars of Kurdistan until December 31 (December) the current, and then headed a delegation from the Kurdistan region is composed of the Supreme Committee for Oil gas headed by Nechirvan Barzani, head of Government of the Territory to Baghdad, and met there with Iraqi Prime Minister Haider al-Abadi, and reached an agreement will take effect from the first of January (January next), but this year we are witnessing the last days now, was a year of very difficult region, managed Government of the Territory, in cooperation with the citizens, to overcome all that is bad at this stage.
* How Territory government spent so far from its own budget for the displaced?
- Kurdistan Regional Government dismissed from imports of oil sales of $ 45 million for the displaced, in addition to the custom of the ministries of municipalities and the interior, health and education budgets, which offers a constantly services for displaced people, where the Ministry of Municipalities provide land for the establishment of camps and providing services to them, and the Ministry of the Interior The availability security for these camps, while provided the Ministry of Health and medical supplies to them, and worked the Ministry of Education to provide education so as not to deprive a section of those displaced from education, and provided the Ministry of Finance in the Government of the Territory of financial allocations for the Ministry to provide services for displaced people, and contributed with these ministries to present the best of the displaced people in the region, as well as organizations The United Nations and Iraq have given aid to the displaced, but this aid were not through the region, but were provided by the donor directly to the displaced.
* How many exchange territory for the Peshmerga forces, especially now that the Peshmerga is fighting a war on a broad fronts against «Daash»?
- Spent so far for the Peshmerga forces $ 70 million, but these expenses do not include weapons; because the weapons that reached the region so far are grants from the countries of the world.
* Agreement entered into by the Government of the Territory with Baghdad, is there a guarantee for success and continuity over the next year 2015?
- Erbil and Baghdad both were in need of this agreement, as you know we both parties face the imposed war by «Daash», and Baghdad are betrayed the region before, and cut our budget, and when they talk about selling us oil, The region began to sell oil after May (last May) , The Baghdad Vqtt budget since the beginning of 2014, so after the formation of the new government headed by Haider al-Abadi, Baghdad began to look at the issue realistically and they enter into with us this agreement, but as a guarantee, there are no guarantees for the continuation, or not be continued, but as I mentioned, the parties need that Baghdad deficit in the budget, and reduced the deficit by exporting the Kurdistan region of daily 250 thousand barrels of oil, in addition to the export of 300 thousand barrels of oil through the region tube, in contrast, can the region through the return of its share of the budget to pass a significant portion of the economic crisis.
* How to reach the region's oil exports over the next year?
- Now issued the region daily 400 thousand barrels of oil a day, but we need to process a quick review of our policies in this area, especially after the decline in oil prices, so the Supreme Council for Oil and Gas will meet in the region at the beginning of the new year, to formulate a new policy with this new price, we can raise our exports from well over the next year.
* Are there any debt on the region?
- For there we have debt, but the debt is not external debt, but are internal debt, represented by using liquid funds in the banks in the provision of salaries and fill in the territory deficit, but we have the court a plan to exchange debt on a monthly basis, after the implementation of our agreement with Baghdad beginning next year.
* How much is the region's share of the overall budget for Iraq in the next 2015?
- Baghdad allocated from the general budget of $ 123 billion, the amount of $ 15.3 billion for the share of the region during 2015.
* According to our knowledge, the financial benefits to the region in Baghdad in 2014?
- Yes it is true, during our meeting in Baghdad with the head of the Federal Minister Haider al-Abadi, we agreed that the current agreement will be the beginning of other of our agreements, and there will be further meetings between the two parties for the liquidation of 2014 accounts, and will settle which our calculations: how much we have and how much they have, and we will get to the number, Baghdad now recognize that the debt of the province to Baghdad of 16 trillion dinars.
* If you come across the same problem with the former Baghdad, is the region can now leads the economy by itself without relying on the federal government?
- Kurdistan region over economic conditions difficult, when I assumed the post of Minister of Finance in the region in June 20 (last), we began to control in the ministry, and the reduction of expenses and minimize, and we were able to follow the austerity system, but what we have been able to manage this situation, however this was our also deficit, we can not say that we will be better than previous years, but we have a program next year to enter the better less largest organization for Wardatna and expenses, and I hope that they do not repeat the Iraqi government what I did before; pieces of the Kurdistan Region's budget and the salaries of its citizens; because this would negatively affect terms of international and domestic Iraqi government; because we are part of Iraq.
* What steps the region in the field of owning an independent economy for Iraq?
- We are reviewing our imports well at home, the county will pay much attention over the next year for projects that have stopped or which has become a work slow, and work for an investment boom in the region and prosperity of the region market, while in the field of oil so we work to raise the production rate and export to the highest levels in order to be able to meet the internal needs of the region, the Kurdistan coming year will see more economically stable than it was in 2014, owning an independent economy is our priority.
* Before the duration of now the talk in the region revolves around the region to submit requests for debt from international destinations, Where did these endeavors?
- Government of the Territory can not get any debt only after parliament's approval of a bill in this regard, when the ratification of this law in parliament take place, then can the Kurdistan Regional Government to rely on the law to get the international debt.
Q: What is your steps in the Ministry of Finance for the advancement of the economy of the region?
- Our plans in the ministry is divided into two parts; first, short-term plans we have started since the past 6 months, and by working to get out of the crisis and pursue austerity, and the unification of financial management in the region, and follow the new fiscal policy in Kurdistan, in cooperation and coordination with the President of the Region Government Nechirvan Barzani, who supported this graciously steps, and in this framework we are trying in earnest to reduce expenses in the Kurdistan region, and to work for the control of our banks, and not to manipulate the liquid in them, and use only necessary for the purposes for which you need the territorial Government, and during the past few months we have been able to provide expenses Peshmerga and displaced persons and secure part of the salaries and budgets of departments, hospitals, airports, and our future plans, they include open a branch of the Central Bank of Iraq in the region, the separation between monetary policy and fiscal policy, now there are two banks central to the region, one in the city of Sulaimaniya and the other in Arbil, two two Finance Ministry in the region, and this may not be of the financial and monetary policy point of view, he opened the Iraqi Central Bank branch in the region will contribute to the development of successful territory of monetary policy, and if the region has a financial crisis, regulated by the monetary Policy Bank, and prevents the deficit faced by the region now occurs, as well as our plan to establish secure in Kurdistan body, where we formulated a draft law, and we will go by the parliament at the earliest opportunity to ratify it, and so will we secure the body to be the region trusted with oil companies and investment companies, and businesses that come to Kurdistan to work, as well as our plan for the establishment of a modern banking system in the region, in line with the outside world.
* Before you take part now in a period of economic conference of oil and gas in London, what the details of this conference?
- Conference was the fourth conference of oil and gas in the region, in the past years was this conference will be held in Erbil, but this year due to deteriorating security conditions experienced by Iraq, suggested organizing this conference outside Iraq; because a large number of giant oil companies were not ready to come to Kurdistan; they look to Iraq and the region is one through media channels, while the region has the security conditions stable under tournaments Peshmerga forces that provided security and safety of Kurdistan, and we discussed during the 3 days many issues about oil and the economy of oil and oil technology law .. Conference between the world that the Kurdistan region a safe place to trade and investment in the oil and reconstruction, was a call for companies that do not exist in the region to enter Kurdistan and to participate in the sale of oil and oil politics of the region, and the role of the Peshmerga heroic forces in countering terrorism, and emphasis was placed on the door of the province is open to all companies to invest in all sectors.
* Now, what the economic policy of the region? And to what aim?
- The region is moving towards more generally outside world open economic policy, and prosperity of the economy, we have developed a good strategy in the Government of the Territory for the prosperity of the economy.
* To what level reached a private economic relations between the region and the Arab world and the Arab Gulf states?
- With regret region economic relations with the Gulf states are not required yet level, we now we have good economic relations with Turkey, especially in the field of oil policy, I hope that we have strong economic ties with the Gulf and Iran, countries in the near future, and that they could they also D the hand of cooperation to the region, so we have to work together a solid economic policy, but with this there are a large number of Gulf and Iranian companies operating in the region.
Q: So, what your letter to the Arab Gulf States?
- My message to the Gulf Arab states that the doors of the region in economic terms is open to all countries of the world, especially near our countries and our neighbors from the Gulf Arab states, to come to the Kurdistan region for investment, and bring their companies to work in the field of oil production, sale, and in the areas of reconstruction and investment strategic projects in Kurdistan, and we will give them all the facilities, and our doors are open to them.
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Wed Dec 31 2014 02:51 | (Voice of Iraq)
The Finance Minister said the economy in the Kurdistan Regional Government Rebaz Mohammed lambs, that the region over the economic situation of difficult during 2014; due to the deterioration of relations between Erbil and Baghdad, and pointed out that the current agreement between the two capitals will enter the scope of application with the beginning of next year, 2015, and in dialogue with «Middle East »that the province will work to increase oil production and exports, and delivered to the highest levels, stressing that the doors are open territory for the Arab Gulf States and all other countries of the world to invest in all areas in Kurdistan. Lambs and confirmed that the province has spent $ 45 million of its oil imports to the displaced. And to dialogue Details
* Where did the economic crisis in the region?
- The economic situation in the region over the complex period of a difficult phase, since the beginning of the current 2014 the federal government in Baghdad, the region's share of the 17 percent budget cut, and with this procedure, the economic crisis in the region began, and after entering the organization Daash to Iraq at the beginning of June (June ) the past, the economic crisis in the region has become more profound, which weighed on the entire spectrum of the people of Kurdistan.
With the expansion of the battle with the «Daash», the Region has a large wave of displacement, where the number of displaced people who entered the territory of more than 1.5 million people, and this was born pressure on the region of the economic and financial point of view, represented expenses Peshmerga forces fighting «Daash» along the borders of 1050 km, and expenses of the displaced to provide food, water and medicine, and the camps and security for them .. which shed considerable pressure on the economic situation.
And then reach the region to deal with the federal government in Erbil represents the export region of 150 thousand barrels of oil per day, compared to send Baghdad billion dollars of Kurdistan until December 31 (December) the current, and then headed a delegation from the Kurdistan region is composed of the Supreme Committee for Oil gas headed by Nechirvan Barzani, head of Government of the Territory to Baghdad, and met there with Iraqi Prime Minister Haider al-Abadi, and reached an agreement will take effect from the first of January (January next), but this year we are witnessing the last days now, was a year of very difficult region, managed Government of the Territory, in cooperation with the citizens, to overcome all that is bad at this stage.
* How Territory government spent so far from its own budget for the displaced?
- Kurdistan Regional Government dismissed from imports of oil sales of $ 45 million for the displaced, in addition to the custom of the ministries of municipalities and the interior, health and education budgets, which offers a constantly services for displaced people, where the Ministry of Municipalities provide land for the establishment of camps and providing services to them, and the Ministry of the Interior The availability security for these camps, while provided the Ministry of Health and medical supplies to them, and worked the Ministry of Education to provide education so as not to deprive a section of those displaced from education, and provided the Ministry of Finance in the Government of the Territory of financial allocations for the Ministry to provide services for displaced people, and contributed with these ministries to present the best of the displaced people in the region, as well as organizations The United Nations and Iraq have given aid to the displaced, but this aid were not through the region, but were provided by the donor directly to the displaced.
* How many exchange territory for the Peshmerga forces, especially now that the Peshmerga is fighting a war on a broad fronts against «Daash»?
- Spent so far for the Peshmerga forces $ 70 million, but these expenses do not include weapons; because the weapons that reached the region so far are grants from the countries of the world.
* Agreement entered into by the Government of the Territory with Baghdad, is there a guarantee for success and continuity over the next year 2015?
- Erbil and Baghdad both were in need of this agreement, as you know we both parties face the imposed war by «Daash», and Baghdad are betrayed the region before, and cut our budget, and when they talk about selling us oil, The region began to sell oil after May (last May) , The Baghdad Vqtt budget since the beginning of 2014, so after the formation of the new government headed by Haider al-Abadi, Baghdad began to look at the issue realistically and they enter into with us this agreement, but as a guarantee, there are no guarantees for the continuation, or not be continued, but as I mentioned, the parties need that Baghdad deficit in the budget, and reduced the deficit by exporting the Kurdistan region of daily 250 thousand barrels of oil, in addition to the export of 300 thousand barrels of oil through the region tube, in contrast, can the region through the return of its share of the budget to pass a significant portion of the economic crisis.
* How to reach the region's oil exports over the next year?
- Now issued the region daily 400 thousand barrels of oil a day, but we need to process a quick review of our policies in this area, especially after the decline in oil prices, so the Supreme Council for Oil and Gas will meet in the region at the beginning of the new year, to formulate a new policy with this new price, we can raise our exports from well over the next year.
* Are there any debt on the region?
- For there we have debt, but the debt is not external debt, but are internal debt, represented by using liquid funds in the banks in the provision of salaries and fill in the territory deficit, but we have the court a plan to exchange debt on a monthly basis, after the implementation of our agreement with Baghdad beginning next year.
* How much is the region's share of the overall budget for Iraq in the next 2015?
- Baghdad allocated from the general budget of $ 123 billion, the amount of $ 15.3 billion for the share of the region during 2015.
* According to our knowledge, the financial benefits to the region in Baghdad in 2014?
- Yes it is true, during our meeting in Baghdad with the head of the Federal Minister Haider al-Abadi, we agreed that the current agreement will be the beginning of other of our agreements, and there will be further meetings between the two parties for the liquidation of 2014 accounts, and will settle which our calculations: how much we have and how much they have, and we will get to the number, Baghdad now recognize that the debt of the province to Baghdad of 16 trillion dinars.
* If you come across the same problem with the former Baghdad, is the region can now leads the economy by itself without relying on the federal government?
- Kurdistan region over economic conditions difficult, when I assumed the post of Minister of Finance in the region in June 20 (last), we began to control in the ministry, and the reduction of expenses and minimize, and we were able to follow the austerity system, but what we have been able to manage this situation, however this was our also deficit, we can not say that we will be better than previous years, but we have a program next year to enter the better less largest organization for Wardatna and expenses, and I hope that they do not repeat the Iraqi government what I did before; pieces of the Kurdistan Region's budget and the salaries of its citizens; because this would negatively affect terms of international and domestic Iraqi government; because we are part of Iraq.
* What steps the region in the field of owning an independent economy for Iraq?
- We are reviewing our imports well at home, the county will pay much attention over the next year for projects that have stopped or which has become a work slow, and work for an investment boom in the region and prosperity of the region market, while in the field of oil so we work to raise the production rate and export to the highest levels in order to be able to meet the internal needs of the region, the Kurdistan coming year will see more economically stable than it was in 2014, owning an independent economy is our priority.
* Before the duration of now the talk in the region revolves around the region to submit requests for debt from international destinations, Where did these endeavors?
- Government of the Territory can not get any debt only after parliament's approval of a bill in this regard, when the ratification of this law in parliament take place, then can the Kurdistan Regional Government to rely on the law to get the international debt.
Q: What is your steps in the Ministry of Finance for the advancement of the economy of the region?
- Our plans in the ministry is divided into two parts; first, short-term plans we have started since the past 6 months, and by working to get out of the crisis and pursue austerity, and the unification of financial management in the region, and follow the new fiscal policy in Kurdistan, in cooperation and coordination with the President of the Region Government Nechirvan Barzani, who supported this graciously steps, and in this framework we are trying in earnest to reduce expenses in the Kurdistan region, and to work for the control of our banks, and not to manipulate the liquid in them, and use only necessary for the purposes for which you need the territorial Government, and during the past few months we have been able to provide expenses Peshmerga and displaced persons and secure part of the salaries and budgets of departments, hospitals, airports, and our future plans, they include open a branch of the Central Bank of Iraq in the region, the separation between monetary policy and fiscal policy, now there are two banks central to the region, one in the city of Sulaimaniya and the other in Arbil, two two Finance Ministry in the region, and this may not be of the financial and monetary policy point of view, he opened the Iraqi Central Bank branch in the region will contribute to the development of successful territory of monetary policy, and if the region has a financial crisis, regulated by the monetary Policy Bank, and prevents the deficit faced by the region now occurs, as well as our plan to establish secure in Kurdistan body, where we formulated a draft law, and we will go by the parliament at the earliest opportunity to ratify it, and so will we secure the body to be the region trusted with oil companies and investment companies, and businesses that come to Kurdistan to work, as well as our plan for the establishment of a modern banking system in the region, in line with the outside world.
* Before you take part now in a period of economic conference of oil and gas in London, what the details of this conference?
- Conference was the fourth conference of oil and gas in the region, in the past years was this conference will be held in Erbil, but this year due to deteriorating security conditions experienced by Iraq, suggested organizing this conference outside Iraq; because a large number of giant oil companies were not ready to come to Kurdistan; they look to Iraq and the region is one through media channels, while the region has the security conditions stable under tournaments Peshmerga forces that provided security and safety of Kurdistan, and we discussed during the 3 days many issues about oil and the economy of oil and oil technology law .. Conference between the world that the Kurdistan region a safe place to trade and investment in the oil and reconstruction, was a call for companies that do not exist in the region to enter Kurdistan and to participate in the sale of oil and oil politics of the region, and the role of the Peshmerga heroic forces in countering terrorism, and emphasis was placed on the door of the province is open to all companies to invest in all sectors.
* Now, what the economic policy of the region? And to what aim?
- The region is moving towards more generally outside world open economic policy, and prosperity of the economy, we have developed a good strategy in the Government of the Territory for the prosperity of the economy.
* To what level reached a private economic relations between the region and the Arab world and the Arab Gulf states?
- With regret region economic relations with the Gulf states are not required yet level, we now we have good economic relations with Turkey, especially in the field of oil policy, I hope that we have strong economic ties with the Gulf and Iran, countries in the near future, and that they could they also D the hand of cooperation to the region, so we have to work together a solid economic policy, but with this there are a large number of Gulf and Iranian companies operating in the region.
Q: So, what your letter to the Arab Gulf States?
- My message to the Gulf Arab states that the doors of the region in economic terms is open to all countries of the world, especially near our countries and our neighbors from the Gulf Arab states, to come to the Kurdistan region for investment, and bring their companies to work in the field of oil production, sale, and in the areas of reconstruction and investment strategic projects in Kurdistan, and we will give them all the facilities, and our doors are open to them.
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