Iraq and the IMF agree on the price of oil to $43 balancing 2017
Since 2016-09-10 at 22:13 (Baghdad time)
Baghdad scales news
The International Monetary Fund said Saturday that Iraq's budget deficit to 2017 big and hard cover, and stressed the need to reduce it by half, suggesting the need to determine the selling price of oil by $43 a barrel, rather than the current price.
The Central Bank Governor said the relationship in an interview on the sidelines of the Iraqi delegation with ongoing Fund in Oman, "discussions revolved around two axes first foundations for the periodic review of the credit, standby agreement and the actions taken by Iraq during the period that followed the Convention."
He said the relationship "as the second axis focused on discussing Iraq budget for 2017 and study its terms and expenditures and revenues and expected shortfall", stating that
"the Iraqi delegation for his part reported on actions taken during the past period, the delegation of Iraq commitment Fund may point to implement most of the provisions of the Convention, and with a limited items require delivery before November of this year."
And the relationship to "Fund found that MOA deficit year 2017 of 34 trillion dinars represents a significant deficit is difficult to cover it, you need to be reduced by more than half.
Central Bank Governor drew the Agency "viewpoint Bank see this deficit holds big risks need to be reduced, especially if the proposed coverage resources in the budget bill is not possible and not available, which will confuse the implementation of the general budget allocations and implementation is distorted and puts Treasury in a difficult position."
He continued the relationship to "the size of the deficit of the general government debt will raise to very high levels where only local government debt will reach the end of this year more than 40 trillion dinars," pointing out that
"Government borrowing and demand of Central Bank buying Treasury remittances impact and significantly affect the Central Bank's reserves of foreign currency, the fact that pumping Iraqi dinar without having the dollar reserve, means generate demand for the dollar than the Central Bank received this coin from the Ministry of finance.
He added that "the requirements of maintaining Iraqi cash reserve call not to build a budget deficit than affecting public debt service and reserves," pointing out that
"the Fund suggested that the price of oil at about $43 2017 budget based on expected prices in the coming period, as suggested further reductions fund expenses and increasing some revenue that he still sought."
The Finance Ministry announced today conclude Iraq talks with the International Monetary Fund for standby credit programme review in Oman, Jordan, confirmed its intention to continue discussions and consultations during the regular annual meetings of the Fund.
The Ministry said in a statement/balance "news today in Oman, Jordan concluded periodic consultations between Iraq and the International Monetary Fund for standby credit program review as a first stage," stating that
"during the talks, which Finance Minister Hoshyar Zebari took part on Iraq's obligations and review Government action and structural standards for economy and performance criteria and indicative targets.
It said that "Decides to continue negotiations and consultations during the regular annual meetings of the IMF and World Bank in October 2016 in Washington", adding that
"discussions involving the Finance Minister and the Governor of the Central Bank and financial adviser to the Prime Minister and head of the Office of financial supervision agency and the Ambassador of Iraq in the Hashemite Kingdom, senior officials in the ministries of finance, planning and the Central Bank and oil."