Iraq to cut spending in 2016 and owes billions of dollars
Iraq to cut spending in 2016 and owes billions of dollars
14/07/2016 18:44 pm (Baghdad time)
Baghdad balances News
The Iraqi government announced in a memorandum published by the International Monetary Fund that Iraq will cut spending in the non-oil budget in 2016 by 15% and Sestdan billions of dollars in light of falling oil prices more than expected.
Iraq relies’s second-largest oil producer in OPEC crude exports to earn almost all its revenue.
While Iraq is seeking support from donors in the light of the collapse of the global crude oil prices and the high cost of the war to organize “Daash” in.
The Iraqi parliament has approved a 2016 budget amounting to 105.8 trillion Iraqi dinars (about $ 90 billion) deficit of 24 trillion dinars in December / December.
The government said in a speech the sender of the International Monetary Fund for a loan application under the demand that it now expects to reduce the deficit to $ 4.9 billion in 2016 and then to $ 13.2 billion during the period 2017-2019.
The IMF agreed to loan demand in the last week to allow Iraq to get a first payment of $ 1.9 billion.
While Iraq announced that other sources of funding to fill this year’s deficit may include loans worth more than $ 2 billion from the World Bank participate in the guaranteed France, Britain, Canada and loans worth more than $ 3 billion from the United States and other lenders.
The authorities will rely on bonds worth one billion US dollars to ensure the full and the issuance of international bonds, a similar amount in the last quarter of 2016.
The last time he sold the Iraq international debt instruments was in 2006, when it issued bonds worth about $ 2.7 billion due in 2028 and Bkopon 5.8%.
The Iraqi government plans to withdraw from its foreign exchange reserves over the next few years to help support this funding.
The government expected that the reserves fall to $ 31.5 billion in 2020 from $ 59 billion in October / October last.
Iraq also said the International Monetary Fund that he was committed to “progressive repayment” of receivables overdue for international oil companies by the end of 2016.
While the government has announced in the note that it will apply the policy of hiring freeze in most sectors and reform of pensions and charging for electricity in order to increase revenues.
She added that while the government of Iraq’s economic activity shrank by 2.4% in 2015, but expects to grow by 10.3% in the current year.
is over
M h n
mawazin.net
