Experts are preparing for asylum government loans and projects futures drain on the wealth of generations
Experts are preparing for asylum government loans and projects futures drain on the wealth of generations
04/07/2015
BAGHDAD / JD / .. after the worsening financial crisis and not to put radical solutions to diversify sources of national income, especially when the continuing decline in world oil prices, the Iraqi government began to think to resort to temporary plans to provide them with funds to implement some of the projects and bridging the financial Ezz made in the federal budget, where resorted Government Federal to use the World Bank to get a financial loan estimated at $ 1.7 billion and two billion more will be awarded in the coming period, as well as opening negotiating channels with international companies to persuade them in the implementation of service projects and infrastructure in Iraq in a way payment on credit over the past 20 or 40 years coming under the terms and privileges to those companies.
A number of experts and specialists has been counting this move as the depletion of national wealth sovereign generations and a waste of public money, warning of the increasing burden on the state and impose economic sanctions on Iraq in the future in the event of his inability to repay financial debt.
He says a member of the Finance Committee MP capable of Mohammed that “due to the worsening financial crisis and the decline in the proportion of revenues due to lower oil prices and increase the budget deficit the government reportedly began thinking to fill this quotient in the budget shortfall through resort to international loans or implement projects on credit.
He said Mohammed told / JD / “The government represented by the Ministry of Finance asked for a financial loan from the World Bank last and the granting billion and $ 700 million and will provide another loan of two billion dollars in the coming period. ”
He added, “The Ministry of Finance contracted with Japanese companies for the implementation of infrastructure projects in Iraq in a way payment on credit up period paid 40-year-old, “he said, adding that in spite of Iraq’s need for these loans and companies, but the multiplication of which will increase the burden on the financial state should read the future economic vision for the country before taking such steps.”
The Finance Minister Hoshyar Zebari said earlier that “the government intends to raise funds emergency through sales from the reserve of the Basra oil through the payment system in advance for the first time, and begin economic reforms to amend the oil contracts with major Western companies. ”
And that has not yet amounts details and the value of these sales, known in the oil industry pre-funding is determined but Iraq need liquidity to finance the military campaign against Daash To compensate for revenue lost because of falling world oil prices.
He said Zebari said Baghdad also plans to change the way it manages contracts for exploration and production with oil companies such as Royal Dutch Shell, BP and Exxon Mobil.
For his part, economist Abdul Hassan Shammari government had resorted to international loans and projects futures as a step to drain the national sovereign wealth for future generations, stressing that it will make the country exposed to significant economic setbacks as a result of these loans.
Al-Shammari told / JD / “There is a wrong planning of the Iraqi economy by those officials for the file economic and financial in the country where Atk resorting to the prosthesis solutions and increase the suffering of the Iraqi economy instead of resorting to drastic solutions to the economic crises by activating the vital and productive sectors to diversify the sources of financial state and lack of dependence on oil. ”
He added that the government contract with Japan to implement futures projects holds time bombs deliberately putting the Minister of Finance to target the Iraqi economy being working for nationalism, not patriotism.
He called on the government to reconsider the agreement with the Organization of Jamaica Japanese to implement projects worth more than $ 700 million in order to avoid economic problems will fall by the future Iraqi government, “stressing the importance of developing radical solutions for the advancement of the national economy.
The Finance Committee member of the parliamentary Sarhan Ahmed, stressed that Iraq is going through a financial and economic major crisis, as a result of lower oil prices, and the lack of a clear economic strategy of the government.
Ahmed said “the tragic situation of Iraq require external borrowing in order to satisfy winning in the budget shortfall, “noting that” the budget for the 2015 deficit close to 25 trillion Iraqi dinars, “pointing out that” set policy in the budget law is to give borrowing the Minister of Finance of the World Bank and the International Fund and the Islamic Bank for the purpose of bridging the lack validity. ”
and between “The borrowing money will go to all of Iraq’s ports, which need to be spent, including the displaced and the salaries of the security forces that fight Daash and other projects.”
The Finance Minister Hoshyar Zebari, signed with a delegation from the Organization of [JICA] Japanese financing for projects in Iraq worth $ 735 million notes.
The first loan project to reconstruct the electricity sector [second stage] in the amount of $ 450 million, while the second loan the sewer reconstruction project in the Kurdistan region of $ 285 million. / end / 8 /
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