Zero percent credit growth in Iraq «Central» US from oil sales

Zero percent credit growth in Iraq «Central» US from oil sales

20-02-2017 02:08 PM

Zero percent credit growth in Iraq Central US from oil salesEast News –

After growth in Iraq balance at the Federal Reserve, the US House exceeded 221 percent, fell to zero percent during the past two years, as a result of the withdrawal amount transferred from Iraqi oil sales for the benefit of the state treasury, to meet the current expenditures and the costs of war and the payment of external debt and internal and benefits huge.

Iraq’s economy depends on oil as a resource and a single to finance its annual budget by 95 percent, and is one of the few countries unexploited many other resources, such as gas, sulfur, phosphate, silica and other minerals.

The deputy head of the economic and investment commission parliamentary Nora Salem in a press statement, said that Iraq «external funds deposited therein oil sales revenue funds, the first is to calculate the Development Fund for Iraq or« number one account », which is open inside the Federal Reserve, turning the proceeds from the sale of oil. The second is the expense of Iraq Fund «account number 2», which is open at the New York Federal Reserve branch, which deposited the Iraqi Central Bank reserves ».

She stressed that «the Iraqi precautions are still protected, even after the receipt of the new American president his duties, under former US decision, and can not be any point of forfeiture or seizure, being in a federal account in dealings between the central banks».

They pointed out that «the five per cent deduction for interest to compensate Kuwait parked under an agreement between the two countries until the end of the current year, and a shift in the form of direct payments all oil sales to Iraq.»

She stressed Salem that withdrawals illegal «is very difficult, because the clouds orders and the transfer of funds from this account can only be achieved by a letter sent to the« Central »American expect the three parties, they are the Iraqi Prime Minister and Minister of Finance and the Governor of the Central Bank.» Based on the financial indicators, it stood at the quantities exported oil last year, one billion and 423 000 231 thousand barrels, the largest amount of exports in November and recorded (in November) last year, are extremely 2,000,988 thousand, less the amount in January (last January), and amounted to 1,000,643 thousand barrels. »

And the growth of Iraq balances Foreign Affairs explained that it «exceeded 127 percent in 2005, and increased the growth rates in the markedly in the following years, rising to 147 percent until it reached 222 percent in 2011 and then began to gradually decline and reached 11 percent in 2014 ,. and then to zero percent in 2015 and again last year »

Iraq faces since 2015, a severe financial crisis following the fall in oil prices in global markets, offset by an increase in the massive spending to fund the war and to organize Daesh secure government spending requirements.

And beyond operating expenses 80 percent of the size of the budget, as experts indicates the presence of more than 3.2 million employees, representing a slice retirees. While the private sector’s inability to attract labor to stay idle sector since 2003. » And experts hope that the Government will benefit from this financial crisis.