Economist: We are facing a fatal crisis and reveals 54 trillion dinars in banks and individuals
Economist: We are facing a fatal crisis and reveals 54 trillion dinars in banks and individuals
Posted, 05/29/2020 21:47:55
{Baghdad: Al Furat News} The economic expert, Alaa Al-Fahd, described the current economic crisis in the country as a “lethal”, while revealing that there were 54 trillion dinars in banks and individuals.
“The government is currently studying several tools for the state’s financial policy, including internal tools by trying to diversify revenues for other sectors and revitalize them, such as the industrial and agricultural sectors, and the participation of the private sector, which can contribute to providing the state and operating many stalled projects,” Al-Fahd said.
He added, “There are several tools on the table of the government and parliament, including the direction of revitalizing the private sector and supporting it to be a partner of the state,” noting that “the economic crisis due to the reduction of oil prices in Iraq is not a result of today, and in every drop we notice the government resorting to reducing expenditures.”
Al-Fahd pointed out that “this crisis is the most deadly in the Iraqi economy, especially its entry with the Corona pandemic crisis, which are multiple challenges that may portend two financial and health catastrophes, so there should be revenue diversification and rationalization in spending, and this is what the International Fund report confirmed by having multiple jobs with more than 250 thousand jobs and horizons can be pressured according to productivity, “stressing” the government’s endeavor to work on this by adopting the 2020 budget law. ”
He continued, “All the solutions currently offered are immediate solutions, either resorting to internal or external loans by selling bonds or resorting to funds in addition to the trust accounts with the ministries, which have not been disposed of until now.”
Al-Fahd noted that “Finance Minister Ali Abdul Amir Allawi has experience in managing the financial file during previous years through which tools and alternatives can be found that contribute to supplying the budget,” asking, “Are these solutions close to reality, especially since banks are mostly idle and the cash block is mostly at homes?” ? ”
He revealed, “The presence of 54 trillion Iraqi dinars, 4 of which are in banks and 50 among individuals in homes, how can the government withdraw this large cash block? What are the encouraging means to buy government bonds and lending? This is what the state’s financial policy is currently looking at.”
Al-Fahd added, “The government is currently working to close simple computers {trust accounts}; but our problem in Iraq is most of our operating expenses, not investment, and our dependence on oil mainly.”
He added, “There are job slack and double wages. Radical solutions must be put in place. Most countries in the world, especially oil, have suffered from the crisis, but they have sovereign funds through which the deficit can be bridged,” returning to resort to withdrawing cash reserves from the central bank that “will weaken the Iraqi currency.”
He concluded Fahd his speech by saying , “There are things that many are on the table , including savings mandatory for employees , ” pointing out that ” the withdrawal of funds frozen and smuggled out of the country file legal needs to raise claims and evidence and the timing of the long and the government is currently looking for quick solutions to get out of this crisis , ” .anthy
Wafa Al-Fatlawi
alforatnews.com
