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Banking bonds to ease the Iraqi fiscal deficit
7/2/2015
Iraq is facing a financial crisis, various factors have combined to increase it further exacerbated. It was the previous governments rely on oil revenues in the management of state affairs, to pay the salaries of employees in the administrative apparatus to build an oversized security forces turned out that size is irrelevant to the efficiency of combat if any. This is confirmed by public budgets that make up the oil revenues as Wipro on 90 percent of the financial allocations. The Iraqi people and pay for the survival of the country economical unilateral oil accounts for the main income source, but hardly to be only when oil prices fell by almost 50 percent since June 2014.
This coincided falling oil prices, with the invasion of the organization of the Islamic state "Daash" large areas of Iraq. And when the government embarked on the financial resources required to mobilize to confront Daash re army building and buy new weapons and extending the popular crowd forces the requirements of this confrontation and found that the billions that have been flowing into the state treasury spent on import, consumption and payment of salaries instead of building a strong economy first, and that these billions are no longer Second, with the amounts available earlier.
Thus, the House of Representatives approved the budget at the beginning of the year amounted to about $ 102 a deficit of over 21 billion government Dolar.ouholt compensate for falling oil prices increase the quantities produced for export. And Iraq's oil exports rose to record levels reached an average of 3.2 million barrels a day in June, according to Reuters news agency.
In the meantime, grown-eighths of confrontation with Daash and increased the financial burden on the government high number of displaced people to more than three million people living in extremely difficult circumstances. The government resorted to take multiple austerity measures in order to squeeze costs and focus on priorities and the postponement of many investment projects.
In the search for new sources of funding and the Ministry of Finance decided to issue the hope that it helps sell in global markets to bridge the ratio of the budget deficit bonds.
On the other hand, announced the Ministry of Oil for negotiating with two international banks to obtain a credit rating allows the issuance of financial bonds worth $ 12 billion to pay the financial dues in connection with the oil licensing.
In this context, a central bank to issue treasury bonds to local commercial banks to contribute Baksth in providing financing to the government sources comes.
Radio Free Iraq met with a member of the economic and investment commission in the House of Representatives Najiba Najib, who said that the central bank initiative comes the result of an urgent need in the phase of serious challenges facing Iraq, including the scarcity of financial resources of the state and to deal with the crisis, displaced more than three million citizens and difficult war with fierce enemy controls the dear part of Iraq.
She explained Najib that the issuance of central bonds the bank the equivalent of five billion dollars only addressed to the internal market is the action taken after the exhausted government and other borrowing potential of local banks and the International Monetary Fund and the World Bank to provide a source of funding in the coming period in the hope to improve in the meantime prices Alinvt.olahzt that the central bank's move comes in exceptional circumstances, and he offers them in previous years when the treasury is full of oil money which increased the level of production and exporting quantities of it at the present time, but prices are still lower than the level of ambition.
Considered a member of the economic and investment commission that the current government took a heavy legacy of its predecessor and it inherited the burden of large and obligations paid to look for other sources of funding through borrowing and issuing bonds, along with other measures.
MP Najib predicted that define the conditions and controls and other related issue Treasury bonds in coordination between the central bank and Ministry of Finance and details.
Member of the Committee of Economy and Investment parliamentary Charter Hamdi considered that the issuance of bonds to hold Trqiei is the product of a great imbalance in the Iraqi economy is adopting the source of revenue and one calling to find other income and protect the national economy to fight corruption and anti-money laundering and punish those responsible for these crises are among several steps you can sources government should take.
And criticized the deputy Charter Hamdi resorting to foreign loans which she usually comes asserting that the solution useful in the long run is the scientific planning to build a diversified economy is not linked to the export of a single commodity volatile prices such as oil as well as the support of the private sector and stimulate the contribution of other sectors such as agriculture, industry conditions.
The MP Hamdi said the government should also struggling financial speculation and smuggling hard currency out of the country and fabricating crises in connection with what it called foreign agendas.
Economic analyst Bassem Jamil Antoine describe the nature of the bonds which the central bank decided to be issued in connection with the budget of about twenty-five trillion dinars deficit, saying it addressed to the productivity of banks such as industrial, agricultural and tourism bonds it serves as Dean of the central bank to the government to contribute to the plug.
He predicted Antoine alleviate the fiscal deficit contribution of central bank bonds with other loans from international financial institutions like the International Monetary Fund and increase Iraq's oil exports to compensate for falling prices.
He expressed Economic analyst Bassem Jamil Antoine optimistic prospects for the development of the Iraqi economy to what is owned by the country's huge oil wealth reviewing the measures taken by the government to maximize its revenue, including improved tax collection and activating the role of the national industry and to reduce the import of grain, depending on local production and increase Iraq's oil exports of course that .
He pointed Antoine that loans and bonds reflect a lack of sources of income and financing and to address the effects of this shortage the government should be prepared to conduct internal reforms such as amending wages water and electricity sold without cost and reduce support provided from the state treasury for many public services.
The IMF said at the conclusion of contacts he had made with the Iraqi government recently that Iraqi gross domestic product growth shrank by more than 2 percent in 2014 and is expected to recover by 1 percent this year. He noted the IMF's low inflation rate of less than 2 percent by the end of 2014 but is expected to rise after the increase in customs duties on imports. Iraqi Central Bank reserves fell from foreign exchange of $ 78 billion at the end of 2013 to $ 66 billion at the end of 2014 due to falling oil revenues and the high level of imports, according to the International Monetary Fund
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7/2/2015
Iraq is facing a financial crisis, various factors have combined to increase it further exacerbated. It was the previous governments rely on oil revenues in the management of state affairs, to pay the salaries of employees in the administrative apparatus to build an oversized security forces turned out that size is irrelevant to the efficiency of combat if any. This is confirmed by public budgets that make up the oil revenues as Wipro on 90 percent of the financial allocations. The Iraqi people and pay for the survival of the country economical unilateral oil accounts for the main income source, but hardly to be only when oil prices fell by almost 50 percent since June 2014.
This coincided falling oil prices, with the invasion of the organization of the Islamic state "Daash" large areas of Iraq. And when the government embarked on the financial resources required to mobilize to confront Daash re army building and buy new weapons and extending the popular crowd forces the requirements of this confrontation and found that the billions that have been flowing into the state treasury spent on import, consumption and payment of salaries instead of building a strong economy first, and that these billions are no longer Second, with the amounts available earlier.
Thus, the House of Representatives approved the budget at the beginning of the year amounted to about $ 102 a deficit of over 21 billion government Dolar.ouholt compensate for falling oil prices increase the quantities produced for export. And Iraq's oil exports rose to record levels reached an average of 3.2 million barrels a day in June, according to Reuters news agency.
In the meantime, grown-eighths of confrontation with Daash and increased the financial burden on the government high number of displaced people to more than three million people living in extremely difficult circumstances. The government resorted to take multiple austerity measures in order to squeeze costs and focus on priorities and the postponement of many investment projects.
In the search for new sources of funding and the Ministry of Finance decided to issue the hope that it helps sell in global markets to bridge the ratio of the budget deficit bonds.
On the other hand, announced the Ministry of Oil for negotiating with two international banks to obtain a credit rating allows the issuance of financial bonds worth $ 12 billion to pay the financial dues in connection with the oil licensing.
In this context, a central bank to issue treasury bonds to local commercial banks to contribute Baksth in providing financing to the government sources comes.
Radio Free Iraq met with a member of the economic and investment commission in the House of Representatives Najiba Najib, who said that the central bank initiative comes the result of an urgent need in the phase of serious challenges facing Iraq, including the scarcity of financial resources of the state and to deal with the crisis, displaced more than three million citizens and difficult war with fierce enemy controls the dear part of Iraq.
She explained Najib that the issuance of central bonds the bank the equivalent of five billion dollars only addressed to the internal market is the action taken after the exhausted government and other borrowing potential of local banks and the International Monetary Fund and the World Bank to provide a source of funding in the coming period in the hope to improve in the meantime prices Alinvt.olahzt that the central bank's move comes in exceptional circumstances, and he offers them in previous years when the treasury is full of oil money which increased the level of production and exporting quantities of it at the present time, but prices are still lower than the level of ambition.
Considered a member of the economic and investment commission that the current government took a heavy legacy of its predecessor and it inherited the burden of large and obligations paid to look for other sources of funding through borrowing and issuing bonds, along with other measures.
MP Najib predicted that define the conditions and controls and other related issue Treasury bonds in coordination between the central bank and Ministry of Finance and details.
Member of the Committee of Economy and Investment parliamentary Charter Hamdi considered that the issuance of bonds to hold Trqiei is the product of a great imbalance in the Iraqi economy is adopting the source of revenue and one calling to find other income and protect the national economy to fight corruption and anti-money laundering and punish those responsible for these crises are among several steps you can sources government should take.
And criticized the deputy Charter Hamdi resorting to foreign loans which she usually comes asserting that the solution useful in the long run is the scientific planning to build a diversified economy is not linked to the export of a single commodity volatile prices such as oil as well as the support of the private sector and stimulate the contribution of other sectors such as agriculture, industry conditions.
The MP Hamdi said the government should also struggling financial speculation and smuggling hard currency out of the country and fabricating crises in connection with what it called foreign agendas.
Economic analyst Bassem Jamil Antoine describe the nature of the bonds which the central bank decided to be issued in connection with the budget of about twenty-five trillion dinars deficit, saying it addressed to the productivity of banks such as industrial, agricultural and tourism bonds it serves as Dean of the central bank to the government to contribute to the plug.
He predicted Antoine alleviate the fiscal deficit contribution of central bank bonds with other loans from international financial institutions like the International Monetary Fund and increase Iraq's oil exports to compensate for falling prices.
He expressed Economic analyst Bassem Jamil Antoine optimistic prospects for the development of the Iraqi economy to what is owned by the country's huge oil wealth reviewing the measures taken by the government to maximize its revenue, including improved tax collection and activating the role of the national industry and to reduce the import of grain, depending on local production and increase Iraq's oil exports of course that .
He pointed Antoine that loans and bonds reflect a lack of sources of income and financing and to address the effects of this shortage the government should be prepared to conduct internal reforms such as amending wages water and electricity sold without cost and reduce support provided from the state treasury for many public services.
The IMF said at the conclusion of contacts he had made with the Iraqi government recently that Iraqi gross domestic product growth shrank by more than 2 percent in 2014 and is expected to recover by 1 percent this year. He noted the IMF's low inflation rate of less than 2 percent by the end of 2014 but is expected to rise after the increase in customs duties on imports. Iraqi Central Bank reserves fell from foreign exchange of $ 78 billion at the end of 2013 to $ 66 billion at the end of 2014 due to falling oil revenues and the high level of imports, according to the International Monetary Fund
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