Economists warn that the country’s vulnerability filed for bankruptcy during 2016
Economists warn that the country’s vulnerability filed for bankruptcy during 2016
12/14/2015
BAGHDAD / JD / .. after the cut in world oil prices to their lowest levels since the past six years has been sounding the alarm on the economies rentier of the oil-producing countries such as Iraq, accounting for oil revenues, 93% in the annual federal budget has made the Iraqi economy is influenced by fluctuations occurring oil prices .
Although the countries of OPEC members agree on a cap cartel’s production to 31 million barrels per day, but some countries like Iran and Saudi Arabia confirmed that they did not are committed to the quantity set for two of the oil production.
The Saudi Arabia produces daily more than ten million barrels a day, while Iran plans to reach the four million barrel production rate as Iraq announced it is seeking to increase its oil production to four million and a half million barrels in
2016, warned a number of experts and specialists in the financial and economic of the country’s vulnerability to financial bankruptcy during 2016 if oil prices continued to decline matter , as they called on the government to put pressure on OPEC to reduce oil production, as well as work on activating the productive sectors to create non-oil resources of the country.
The economist said Abdul Hassan al-Shammari, that the adoption of the Iraqi federal budget by a large margin on oil revenues, this is a big mistake in economic policy as Most of the countries are working to diversify national income resources to avoid any problems that may occur and hamper the development of her own wheel. He said al-Shammari, told / JD /: that the continuation of oil prices decline will lead to big problems in the country’s government and makes the development of a very critical because it will be less liquidity, adding that the government would resort to internal and external loans to bridge the fiscal deficit, which may happen as a result of the lack of budget revenues.
He suggested Shammari an agreement between Iraq and Iran and Russia to cut oil production by three million barrels a day from OPEC and this is what will lead to the achievement of the quality of oil prices jump in global markets because the assets of the leadership for the management of the world’s oil View, however, exclusively these countries.
He noted that the oil licensing rounds handcuffed the country a lot of money and set terms and large restrictions, calling for amendment or repeal.
For his part, warned the economic researcher Muhammad al-Hassani of the country’s vulnerability to financial bankruptcy during 2016 due to lower oil prices, likely the arrival of oil prices to $ 25 a barrel as a result of
oversupply., said al-Hassani told / JD / that 2016 budget was built on the basis of determining the price of oil at $ 45 which means that the deficit will exceed the 50% and this is what will make the country’s financial crisis may resort from which Iraq into several options, including payment of salaries delay or be disbursed every 40 days, and this proposal was present within the budget in 2015.
He also Selja Iraq to the cancellation of some financial allocations in the budget, especially petty some of the ministries and the three presidencies in addition to the asylum for external lending from international banks and friendly countries to bridge the fiscal deficit.
He advised economic researcher government to focus on non-oil sectors such as tourism, on the grounds that Iraq possessed great religious tourism in the Holy provinces by raising the wages of the visa, as well as support local industries agriculture, both animal and vegetable sector.
For its part, the Finance Committee has ruled out modifying the exact price of oil in the 2016 budget amounting to $ 45 a barrel.
The committee member said Jabbar al-Abadi told / JD / that There are a group of experts and advisers are studying the current and future status of the fluctuations taking place in oil prices as well as the use of international organizations in order to determine Saad oil in the federal budget, noting that the price set $ 45 a barrel is considered acceptable.
He added that the country’s vulnerability to financial bankruptcy is unlikely for several reasons, including The economy is undergoing improvements as well as a large cash reserves as well as could turn Iraq into internal and external borrowing, pointing out that there is a paragraph in the budget the government commits Ballja to borrow in the event of a large deficit in the budget.
The Prime Minister Haider al-Abadi had presided over the meeting Chairman of the Finance Committee included Faleh in force and a number of members of the committee and a member of the Presidency of Parliament to discuss Hamoudi 2016. / end / 8 budget /
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