Launch treasury bonds worth $ 12 billion to pay dues of oil companies

Launch treasury bonds worth $ 12 billion to pay dues of oil companies

TUESDAY, 10 MARCH / MARCH 2015 14:06

Launch treasury bonds worth 12 billion dollars to pay dues of oil companiesTwilight News Iraqi Oil Ministry / said on Tuesday it had agreed with the financial counterpart of the Central Bank of Iraq to launch treasury bonds worth $ 12 billion to pay accumulated dues of foreign oil companies in the country.

The ministry indicated in a statement reported for “Twilight News” that the agreement on the launch of Treasury bonds was during a joint meeting between the Ministry of Oil and Ministry of Finance and the Central Bank of Iraq.

She said the decision was taken to remedy the consequences of the decline in crude oil prices in the global market, which has led to the decline in financial revenue of the general budget of the Federal Iraq for the current year, which ultimately withdrew the lack of provisions for the Ministry of Oil.

The Oil Ministry said the launch of the bond comes to remedy the concerns of non-payment of dues reflection negatively on crude exports from the country’s rate.

Iraq’s exports amounted to 2.597 million barrels per day in February, up from 2.56 million bpd in the previous month.

The ministry said in a statement 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 the month of March in March that the launching of other payments continue, respectively.

Showed 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.

She pointed out that this measure 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.

According to Oil Ministry figures, the 2015 budget is monitored to repay foreign oil companies hardly covers the accumulated dues of last year 2014 and up to $ 9 billion.

While the current year’s budget allocated $ 4.5 billion to foreign oil companies for each chapter of the four-year.