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External borrowing puts the independence of the economic decision in the circle of danger

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External borrowing puts the independence of the economic decision in the circle of danger

Monday 09/11/2015 23:30

Baghdad news / Bashir al-Araji,
warned economists from turning adoption of Iraq's economy on the financial borrowing the outside because of its negative effects in the coming period, and concerning the independence of economic decision-Iraqi with the continuing decline in the financial and the country's imports resulting from the decline in the sale of oil prices. The warning comes with the start of Parliament reading the first to balance in 2016, which saw a significant decline in value, especially in the area of the investment budget, and the adoption of what would respond to the state treasury of foreign loans, both from the International Monetary Fund or other entities that would impose financial conditions on Iraq this section. He said the economic and financial adviser to the prime minister appearance Mohammed Saleh, said that the financial revenues of oil to Iraq fell to more than 55% compared to what was responding Iraq of amounts due to the sale of oil two years ago, which led to the passing Iraq a severe financial crisis and the plight of financing. Saleh added in his interview for "Baghdad News" this fall impact heavily on the Iraqi economy and the movement of money in terms of spending or savings, noting that external borrowing to support the budget and bridging the deficit has many risks, in terms of transformation of the economy to an entity depends on expensive external flows price, which will lose Iraq the independence of economic decision, pointing out that one of the financial problems we are experiencing in the budget of 2016, it is the allocation of oil revenues and some sovereign revenue task in the budget to paragraph operating budget, while the investment budget expenses restricted public financial ability to provide opportunities for borrowing and deficit financing internal loans available or external capital markets. confirms experts the economy, the loans granted by international financial institutions to countries experiencing financial hardship, working to restrict its economic, has already seen a lot of countries similar cases lost on the track national decision-making in exchange for global financial institutions restrictions feature. In a related development, reads House of Representatives on Tuesday, a draft financial budget in Parliament for the 2016 law. A member of the Finance Committee Masood Haider in a press statement that after the first reading of the budget, will be converted law to the Finance Committee for the purpose of study and the addition of proposals and amendments Parliamentary them. He continued to pass the budget, it is linked to the political blocs Inside the House of Representatives and the consensus around it, expecting not to delay the approval and that the country needs it. parliamentary Finance Committee announced, earlier this November for the arrival of draft financial budget law for 2016 to the Presidency of the Council of Representatives, after being approved by the Council of Ministers, In October 18, 2015, total expenses amounting to 106 trillion dinars and a projected deficit of nearly 23 trillion dinars.

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