After the World Bank decline in support for Iraq .. fears of a lack of coverage of employees’ salaries
After the World Bank decline in support for Iraq .. fears of a lack of coverage of employees’ salaries
07/02/2017
BAGHDAD / JD / .. after the condition of the World Bank to provide financial support for Iraq (loan) is implementing a project of national reconciliation in the country, has been interpreted by observers and specialists in financial regard that it Tangier World Bank retreated from its financial support for Iraq in light of the financial crisis faced by the country and to increase Federal budget deficit, triggering fears of the inability of the government to pay the salaries of employees during the current year, to the fact that oil prices are still below the level of ambition despite the petroleum exporting countries agreement (OPEC).
The Regional Director of the World Bank, said the bank intends to provide financial support for Iraq in parallel with projects to take care of reconciliation after defeating Bdaash so as to ensure the sustainability of reconstruction after years of conflict.
He says economist Mohammad al-Hassani, said that oil prices are still below the level of ambition in spite of OPEC reached an agreement to freeze the production, and this means that the financial crisis will worsen in Iraq on the grounds that the budget revenues depend on oil.
He told / KD / The Iraqi government is relying on foreign loans from the World Bank and the IMF to bridge the fiscal deficit, noting that the World Bank’s recent decision to draw an ultimatum for the Iraqi government in the coming period, which can make them at a loss regarding the payment of staff salaries.
He noted that the absence of developmental projects in the country led to the making of Iraq on the brink of economic collapse due to lack of additional imports supports the federal budget, calling for activating the development projects and plans to support the national economy.
For its part, the Ministry of Finance confirmed, securing the entire salary for 2017.
According to a statement of the ministry, “Bmenhjha commitment in the face of economic developments confirm the Ministry of Finance to walk steadily in dealing with the repercussions of the current crisis, according thoughtful dimensional program depends on the revenue estimate area and volume of annual spending.”
The ministry reiterated “the assertion that the salaries of the ministries and departments not associated with the Ministry fully insured for the 2017 federal budget that covers all the basic needs of all sectors of the state.”
The World Bank approved last December a new loan of one billion and 485 million dollars to help Iraq’s economy in the face of falling oil prices and the burden of the cost of the war against Daesh bringing the total support to Baghdad to about 3.4 billion Dolar.anthy / 8 /
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