Government borrowing from the central solution to provide financial liquidity
Government borrowing from the central solution to provide financial liquidity
08/11/2014 (0:01 pm)
BAGHDAD / Ibrahim Ibrahim
Economists warned that the involvement of the Iraqi government foreign loans grounds that the provision of financial liquidity as a result of worsening economic crisis in the next three months, while demanding the Parliamentary Finance Committee the need to distribute the special budget 2015 exchange doors according to new economic data through the activation of tax laws and the collection of public funds does not affect on the incomes of citizens.
The economist said Mohammed Abdul-Latif al-Ani, “long”, “The 2014 budget does not consider the budget in the true sense, as they emptied the contents of the public will be provided in the form of exchange bonds retroactively.”
He added that “the remaining period of the current year can be exploited by the parliamentary finance committee put the court plan economically for the budget next year, according to data real-time, the most prominent disbursements war with Daash and the method provided in addition to the drop in world oil prices to below $ 80, and how the distribution of financial imports sectors biotechnology in the state. ”
Ani said, “and explained the government borrowing from the Central Bank of Iraq, the process for the purpose of avoiding liquidity deficit expected over the next three months could provide critical support significant when the adoption of the 2015 budget law.”
He said the “current financial crisis can be avoided by rearranging spending priorities, and by putting measures” sound “, including the expansion of domestic borrowing door firing of securities to the public without resorting to external debt and the involvement of complex burthens, and activate the collection of fees and tax laws focused manner that does not affect the resources Financial citizen.
He stressed that “the government is able to overcome the current financial crisis if the right steps are taken towards the provision of liquidity by borrowing from the central bank, which has confounded well of money that is often invoked in the crises that raid countries.”
The chairman of the government, “Haider al-Abadi,” recently, that his government had discussed the issue of the federal budget for 2014 to three times, and will provide a cash budget to the House of Representatives, representing the amounts disbursed by the government since the beginning of this year, with military spending, “pointing out that” 2015 budget will be based on the current year’s budget, because the current problems will continue in the coming year, the province of Kirkuk, where oil wells stopped, as well as lower prices for a barrel of oil dramatically to below $ 90 per barrel. ”
Abadi added that “the Council of Ministers decided to follow the policy of austerity in unnecessary expenses, and we will continue with this policy, because we can not confine the military effort and salaries and basic services to citizens.
The total revenue and expenditure for the first seven months of the year features the in another era Nuri al-Maliki found that Iraq spent all amounts derived from the export of oil, even though he did not pay the Kurdistan dues nor the amounts allocated to Basra petrodollars, nor most of the financial obligations of the provinces which fell to Daash.
For his part, warned an economist of the World “external borrowing debt”, because it carries a damaged big burden, so you must wait before entering into this area, as the government called for the “start a major reform campaign and” change “in the economic field to lift obtrusive investment laws and legislation other to accelerate private sector involvement. ”
In the same vein, former deputy central bank says the appearance of Mohammed Saleh in an earlier statement “long” that “Iraq passed in exceptional circumstances during the last ten months, and increased expenses due to the war on the organization of the Islamic state, and the circumstances that accompanied the fall of a number of provinces, however, the organization, as well as to the problem of the displaced “, pointing out that these events have led to” withdraw cash “available to the government.
The former official promised that the current liquidity crisis is “temporary”, but accompanied by the problem of the low price of a barrel of oil to nearly 25% from the previous price, pointing out that Iraq is in front of the problem of high costs and falling oil prices, which constitute 95% of the country’s budget was left in front of the Financial Management However reconsider the “engineering expenses.”
He says Saleh said that “there are expenses and regulations and decisions of the financial burdens that can be deferred,” adding, “It is time to rationalize expenses and put him to the priorities of expenses such as counter-terrorism and the displaced and the salaries of the staff and the necessary needs of the citizens, in line with the difficult conditions experienced by the country.”
The former official at the central bank believes that the cash could end with “austerity disbursements” and increase revenue, such as taxes and fees imposed in does not affect the citizen and the cost of economic life, through the organization of sources and outlets of financial achievement and according to the plans studied and “Maps collection” followed by the world, such as taking a thousand dinars on every government treatment, “but they are very low sums totaling would be great,” adding that “the government can play to activate the private sector, which is the biggest savers for money.”
While ruling out the Ministry of Planning, orientation to make next year’s budget in 2015, “austerity” because of the drop in world oil prices, indicating that the government is in the process of the adoption of the current 2014 budget.
This came during a press conference held by the Minister of Planning, Salman al-Jumaili, attended by “long-Presse.”
Jumaili said, “The ministry monitors the drop in world oil prices and has a special plan to cope with it,” adding that “Iraq has the ability to prepare next year’s budget in 2015 despite lower oil prices”, ruling that “the next budget austerity.”
The minister, expressed the hope that the “improved security situation and the return of Iraqi oil exports to the previous rates before the outbreak of the current crisis, to ensure that the need for austerity.”
Oil prices have tumbled about 25 percent since June, and overshadowed by a significant increase in high-quality shale oil production from North America to demand at a time of stagnant economic growth, analysts say, an oversupply may continue for years.
almadapaper.net
