Central bank reassured about salaries and debt after the collapse in oil prices
Central bank reassured about salaries and debt after the collapse in oil prices
03/19/2020 09:55
Baghdad today – Baghdad
On Thursday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed that Iraq was able to secure the salaries of employees and retirees and cover despite the great collapse in oil prices, while stressing that prices would not remain at this level.
Al-Alaq said in a press statement, that “based on our preliminary indicators, we will be able to cover external debt and salaries,” stressing that “there is some concern, but it is not acute.”
He added, “Oil prices will not remain at this level. We do not expect it to rise much, but it is sufficient to secure the required amounts. ”
Al-Alaq explained, “Officials are still closely reviewing the draft 2020 budget, which is one of the largest Iraqi budget ever, which amounts to about 164 trillion dinars.”
The member of the Parliamentary Finance Committee, Ahmed Al Haj Rashid, had stated earlier, that what Iraq needs for one month’s salary according to the budget allocations of 2019 is 358.2 billion three trillion five hundred and eighty two billion dinars.
He added: “If we calculate the salaries according to the allocations of 2020, which amount to (4400) four trillion and four hundred billion dinars, that means we need about (2200) (two trillion and two hundred billion) additional dinars.”
Before that, the General Secretariat of the Council of Ministers reassured, Tuesday (March 17, 2020) about the salaries of employees and retirees, stressing that they are fully insured, and cannot be affected, and that after a short period of a statement by the Minister of Electricity, the salaries were affected by the Corona crisis and the collapse of oil prices.
The official news agency quoted the General Secretariat as saying that “the salaries of employees and retirees are insured and cannot be compromised in any way”, indicating that “there is a tendency to reduce dependence on oil revenues and to activate other resources properly.”
Before that, Minister of Electricity Louay Al-Khatib said it was likely that the salaries of employees were affected by the Coruna virus outbreak and the sudden collapse of oil prices during the past few period.
Al-Khatib said in a press statement, “The salaries of employees may be affected by the outbreak of the Corona virus and the collapse of oil prices.”
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