Mohammed Saleh: the government’s actions came to cover the deficit in the budget of 2015
The appearance of Mohammed Saleh: the government’s actions came to cover the deficit in the budget of 2015
Posted, 07/03/2015 (22:15)
BAGHDAD / Amer Mohi
Economic Adviser to the Prime Minister stressed that the measures taken by the government to issue bonds and borrowing from banks, which came to fill the budget deficit in 2015, with experts called on the government to grant bond to local banks, rather than foreign, which may impose restrictions hurt the economy in general.
Economic Adviser to the Prime Minister Haider al-Abadi, said in a statement to the “long” that “the issue of remittances is a paragraph within the budget of 2015 Act, the Minister of Finance is authorized by,” noting that “the move was to provide financial liquidity, good and is at the present time.”
Economic adviser said the appearance of Mohammed Saleh, said that “the central bank was taking 15% of any deposit found in government-owned banks that is backed up mandatory legal,” he said, adding “there are proposals to make it by 50% to support the banks, and this is the contents of the budget in 2015″.
Saleh indicated that “fiscal deficit is currently, and approved the budget does not change in that,” he underlined that “the steps taken by the government and Ministry of Finance came to fill the shortfall caused by the sharp decline in oil prices, and can not rely on expectations of rising oil prices, because the budget is something my appreciation and provided within a particular law. ”
For his part, economist Ahmed Sabih told the “term” that “the adoption of the bonds at the present time is necessary and important to bridge the budget deficit,” noting that “the government will re-bond funds with the benefits, according to the contract in the event of a surplus in the fund balance or high oil prices. ”
The expert added by saying that “the budget deficit may decrease by a large margin, and there becomes a balance in the event of the price of a barrel of oil rose to $ 70,” he said. “The big problem in Iraq is the government appointments that drain big money from oil revenues.”
Sabih called the Iraqi government to “give the bonds to local banks, with the addition of interest on it, because foreign banks may impose certain restrictions which is detrimental to the Iraqi economy.”
Decided the Central Bank of Iraq (January 27, 2015) Financing financial budget for the current 2015 six trillion Iraqi dinars, and as he emphasized his agreement to a set of proposals to address the “fiscal challenge,” in Iraq, he pointed out that these actions “do not affect the Bank’s Special Reserve.”
He said the CBI in a statement: “In line with the Central Bank of tasks and responsibility in supporting the development and stimulate the Iraqi economy and in light of the financial challenges faced by the country, the Board of the Central Bank Board of Directors approved the inter proposals made by the Bank’s management.”
The statement added that “among the proposals is to support the liquidity of specialized commercial banks in the amount of (5) five trillion dinars to enable them to provide loans to industrial and agricultural and providing housing and real estate loans in support of economic activity and job creation, as well as financing the state budget loan amount (6) six trillion dinars run through 50% of the commercial banks’ reserves deposited with the Central Bank of Iraq. ”
He announced Finance Minister Hoshyar Zebari (March 3, 2015) that Iraq is looking with Deutsche Bank and Citibank version potential for bonds worth six billion dollars to cover the budget deficit.
Zebari said in an interview reported by “Reuters”, “The Ministry of Finance is considering measures including the issuance of bonds and borrowing from state banks and the conversion of some of the Iraqi banking assets in the Central Bank to bonds,” noting that “The ministry may also considering raising funds through sales of futures oil If the Council of Ministers rejected plans to issue bonds for ten years. ”
Zebari said that “Iraq looking with Deutsche Bank and Citibank version potential for bonds worth about six billion dollars to cover the expected huge budget deficit this year,” noting, “I think people now realize that this budget realistic.”