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Oil: the launch of a $ 12 billion bond
3/11/15
A joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq was agreed to launch treasury bonds worth 12 billion dollars to cover the payment of financial dues to foreign companies.
BAGHDAD / Obelisk: The Oil Ministry announced on Tuesday, its agreement with the Central Bank of Iraq to launch treasury bonds worth $ 12 billion to pay dues to foreign companies and contractors working in the oil fields.
According to a ministry statement seen by the "Obelisk", "The decline in crude oil prices in the global market led to a decline in fiscal revenue of the general budget of the federal 2015, which is reflected in the budget of the Federal Ministry of Oil, which in turn led to a lack of financial allocations to cover the payment of dues foreign companies and contractors working in the oil fields under service contracts. "
"It was a joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq to address these consequences and its negative effects on crude oil production rates in these fields, and emerged from the meeting, to agree on the launch of treasury bonds worth $ 12 billion.
The statement noted that "the launch of treasury bonds, was based on Article 34 of the federal budget for the 2015 law, the first batch of which will be launched end of March this month that the launch of the other payments continue to turn."
The ministry said in a statement that "the release of these bonds in addition to the specific allocations already in the ministry's budget will provide sufficient funds are available to pay dues to foreign companies contracting both those amounts that have been carried over from last year in 2014, or planned spending in the current year 2015".
The ministry said, "This move reflects the gravity of the financial situation of Iraq and maintains reassuring for all companies operating in the country's investment environment in order to sustain the implementation of vital projects" showed.
The Oil Minister Adel Abdul-Mahdi, had confirmed at a news conference earlier in advance that "with the financial squeeze there between us and the companies financial dues were paid part of dues in 2013 and we left some dues to 2014 and there are also benefits in 2015, and these account for a large amount exceeding $ 20 billion and prices Oil collapsed and you have to give these sources. "
He stressed that "these funds will provide, have been anticipating the events was provided from two main sources, first of all that was allocated in the budget to pay for what was allocated to companies in the general budget, a $ 14 trillion dinars, and the second thing is that the legitimacy of the ministry demanding Prime Minister and Minister of Finance to launch treasury bonds worth 12 billion dollars, and we started the procedures in order to cover the dues companies. "
Abdul-Mahdi stressed that "the benefits companies have priority because the profitability of companies, in order to achieve specific gains you work and handed over the oil of Iraq and we have to recognize the amounts due and if they do not provide those funds, there will be lower production."
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