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Oil revenues collapsed to five and constantly decreasing
Baghdad world
nearly 90% of the Iraqi government revenues come from oil, but the oil price collapsed by more than half in the last year, with the collapse of Iraq's oil exports to the size of five, with the continuation of the military campaign against the militants to organize the so-called "Islamic State "The terrorist who dominated much of the north of the country and western regions, in short that the country's financial problems have become almost the size of the political problems, also emphasizes global specialized reports.
The Iraqi parliament approved in January the country's overall budget, which amounted to 119 trillion Iraqi dinars (US $ 105 billion US). And accounted for a reduction in spending amounted to 16%, which means reducing the money allocated to each of the ministries. And tried to raise budget revenues also through the imposition of sales tax on mobile and internet cards, airlines, cars, alcoholic beverages and cigarettes. However, the deficit amounted to 25 trillion Iraqi dinars, or about 9% of GDP.
The report, published by the Economist magazine and sees Despite this, it appears that the case has something of optimism. The budget was held on $ 56 per barrel of oil, and assume that exports rate of 3.3 million barrels per day. But in January, Iraq exported 2.4 million barrels per day, with an average price of almost a barrel to $ 41, according to the unit of information in The Economist magazine.
To fill this gap, the Iraqi government plans to sell bonds, and postponing some payments of them and rely on their savings. Having pushed the public debt and Qlltha than 300% of GDP in 2004 to 31% of GDP today, in front of the Iraqi government room to maneuver. As currently discussing Iraq with a group Citigroup and Bank of German bond sale transaction worth $ 6 billion. Officials say they also would borrow from the International Monetary Fund and the World Bank. Baghdad and Erbil also borrows from Turkey currently. Prime Minister, Haider al-Abadi, also spoke, with the Egyptians about the country's debt to the oil transfer, despite the fact that this matter would reduce Iraq's oil export revenues.
In the meantime, Kuwait agreed to defer some of the damages resulting from the invasion of Saddam's regime have in 1990. agreed Western oil companies operating in Iraq to reduce investment, which the Iraqi government bears part of the cost. Shell alone and agreed to save $ 0.9 billion, despite the fact that this will also reduce the end of the day from oil exports.
The Iraqi government also plans to borrow from the central bank reserves, estimated by the World Bank that it reach $ 78 billion. What remains to Iraq, some assets abroad, even though it looks like it exhausted a special fund the development of the country in which the surplus oil revenues.
The report points out that the war and austerity left their impact on the economy, which shrank by 2.7% last year, according to Little Box IMF. And unemployment has increased about 25%; in addition to that 40% of Iraqis who are in the age of the work of government officials. Even in 2013, before the advent of Daash on the Iraqi arena, foreign direct investment was $ 2.9 billion just this small part of what Iraq needs for reconstruction of infrastructure and the revival of its oil industry.
In the meantime, the President of Russian oil company "Lukoil", Waheed Alekperov that his company would ask Iraq increase in the volume of oil in compensation from the "West Qurna 2" field, otherwise they could reduce their investment in the project.
The Iraqi government and offset the costs incurred by "Lukoil" to provide certain amounts of oil in the context of the development of the project "West Qurna 2" .
He Alekperov said: "We hope that the Iraqi side will take all possible measures in this complex situation in order to increase the volume of oil Compensation us due to falling oil prices in the international markets, so that we can maintain the economic criteria and the rate of investment in the project."
Alekperov said he plans to meet with representatives from the Iraqi side to discuss this sensitive issue in soon.
While Iraq is going on in a vicious cycle, the lack of liquidity comes to poison Iraqi politics. Did not pass the general budget of the country reached only after the authorities in Baghdad with the Kurdistan Regional Government on the sharing of oil revenues, in a controversial deal has increased the country's financial crisis and referred again to the extent of not taking care of the lives of Iraqi politicians in the country.
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Baghdad world
nearly 90% of the Iraqi government revenues come from oil, but the oil price collapsed by more than half in the last year, with the collapse of Iraq's oil exports to the size of five, with the continuation of the military campaign against the militants to organize the so-called "Islamic State "The terrorist who dominated much of the north of the country and western regions, in short that the country's financial problems have become almost the size of the political problems, also emphasizes global specialized reports.
The Iraqi parliament approved in January the country's overall budget, which amounted to 119 trillion Iraqi dinars (US $ 105 billion US). And accounted for a reduction in spending amounted to 16%, which means reducing the money allocated to each of the ministries. And tried to raise budget revenues also through the imposition of sales tax on mobile and internet cards, airlines, cars, alcoholic beverages and cigarettes. However, the deficit amounted to 25 trillion Iraqi dinars, or about 9% of GDP.
The report, published by the Economist magazine and sees Despite this, it appears that the case has something of optimism. The budget was held on $ 56 per barrel of oil, and assume that exports rate of 3.3 million barrels per day. But in January, Iraq exported 2.4 million barrels per day, with an average price of almost a barrel to $ 41, according to the unit of information in The Economist magazine.
To fill this gap, the Iraqi government plans to sell bonds, and postponing some payments of them and rely on their savings. Having pushed the public debt and Qlltha than 300% of GDP in 2004 to 31% of GDP today, in front of the Iraqi government room to maneuver. As currently discussing Iraq with a group Citigroup and Bank of German bond sale transaction worth $ 6 billion. Officials say they also would borrow from the International Monetary Fund and the World Bank. Baghdad and Erbil also borrows from Turkey currently. Prime Minister, Haider al-Abadi, also spoke, with the Egyptians about the country's debt to the oil transfer, despite the fact that this matter would reduce Iraq's oil export revenues.
In the meantime, Kuwait agreed to defer some of the damages resulting from the invasion of Saddam's regime have in 1990. agreed Western oil companies operating in Iraq to reduce investment, which the Iraqi government bears part of the cost. Shell alone and agreed to save $ 0.9 billion, despite the fact that this will also reduce the end of the day from oil exports.
The Iraqi government also plans to borrow from the central bank reserves, estimated by the World Bank that it reach $ 78 billion. What remains to Iraq, some assets abroad, even though it looks like it exhausted a special fund the development of the country in which the surplus oil revenues.
The report points out that the war and austerity left their impact on the economy, which shrank by 2.7% last year, according to Little Box IMF. And unemployment has increased about 25%; in addition to that 40% of Iraqis who are in the age of the work of government officials. Even in 2013, before the advent of Daash on the Iraqi arena, foreign direct investment was $ 2.9 billion just this small part of what Iraq needs for reconstruction of infrastructure and the revival of its oil industry.
In the meantime, the President of Russian oil company "Lukoil", Waheed Alekperov that his company would ask Iraq increase in the volume of oil in compensation from the "West Qurna 2" field, otherwise they could reduce their investment in the project.
The Iraqi government and offset the costs incurred by "Lukoil" to provide certain amounts of oil in the context of the development of the project "West Qurna 2" .
He Alekperov said: "We hope that the Iraqi side will take all possible measures in this complex situation in order to increase the volume of oil Compensation us due to falling oil prices in the international markets, so that we can maintain the economic criteria and the rate of investment in the project."
Alekperov said he plans to meet with representatives from the Iraqi side to discuss this sensitive issue in soon.
While Iraq is going on in a vicious cycle, the lack of liquidity comes to poison Iraqi politics. Did not pass the general budget of the country reached only after the authorities in Baghdad with the Kurdistan Regional Government on the sharing of oil revenues, in a controversial deal has increased the country's financial crisis and referred again to the extent of not taking care of the lives of Iraqi politicians in the country.
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