The former oil minister: Iraq on the verge of a severe financial crisis
The former oil minister: Iraq on the verge of a severe financial crisis
03-10-2014 10:36 PM
Predicted oil expert and former Oil Minister Issam Chalabi, Iraq could descend into a financial crisis and that the intervention of the public in its budget deficit crisis due to the significant decline that has occurred recently in oil prices, while the Iraqi budget on the basis of high price.
Chalabi said Iraq and unlike other Arab countries depends on the budget, assuming high oil prices, and assuming the survival of the big production of it, which represents a big risk starting to show now, with the decline witnessed in oil prices.
Oil prices tumbled more than 11% in recent weeks, where Brent crude oil has exceeded the levels of Al108 dollars during the month of July last before collapsing to below Al97 dollars during the past few days, while crude fell American levels percent dollars to about 91 dollars only.
Chalabi said that the budget in Iraq based on the average price of a barrel of oil in 2014 will not be less than $ 95, which means that the current year budget is exposed to the crisis and a large deficit in the event of continued oil prices career landing from now until the end of this year.
According to Chalabi, the countries such as Algeria and Saudi Arabia will not be affected by the downward current oil prices, where the budget Algeria, say, on the basis that the price of a barrel of oil would be $ 30 only, and therefore they do not assume significant revenues from oil production, including state can to keep the financial surpluses rather than deficits.
ikhnews.com
