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Maliki warns of borrowing to pay off the petro-dollar block-Hakim calls for the transfer of funds to investment projects in the governorates

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Confirmed two Balgantin financial and economic in the Iraqi parliament, said on Monday that the government "obliged" to pay allowances of petrodollars to the provinces oil according to the proportion of the new amount of five dollars, and when he saw the coalition of Prime Minister Nuri al-Maliki, to address this "crisis" has become "too late" and can be "detriment" of the national economy and "hamper" projects and services, and warned the government to resort to borrowing, which could expose the economy to a "setback", called for mass citizen to convert those funds to investment projects holds the provinces to run their affairs.

A member of the parliamentary finance committee, Abdul Hussein al-Yasiri, in an interview to the newspaper (range), said that "disable the budget approval by the House of Representatives because of the demands of the oil-producing provinces by including allocations of the petro-dollar, would hurt a lot of the Iraqi economy and delay service projects and investment."

He Yasiri, a deputy from the State of Law coalition, led by Prime Minister Nuri al-Maliki, that "the provinces demanding allocation of petrodollars is right because the extraction of oil and gas has damaged their environment and carved out large swathes of territory," and urged the government to "compensate those provinces by implementing the provisions of petrodollars" .

And on possible solutions to take out the budget in 2014 from the neck of the bottle, he saw a member of the parliamentary finance committee, that there are "three scenarios may turn to the government the first price increase speculative oil from 90 to 95 dollars, or increase the estimates of oil production to more than three million barrels per day, or make transfers in capital expenditures and operating from one governorate to another. "

Yasiri, that "a mechanism to address the crisis of the petro-dollar budget became late and everyone has had the preparation of the budget meets the needs of the people of the provinces in early," pointing out that "the payment of five dollars for producing provinces will cost the government about six percent of the overall size of the budget."

A member of the parliamentary Finance Committee, that "the current budget did not prefer to keep the other in the distribution of investment projects and purported to justice in accordance with the population density," and added that "the Kurdistan region takes 17 percent on the basis of population density as agreed politically and technically by those prepared the budget. "

The head of the Council of Representatives, Osama Najafi, had guessed, on Monday, re-budget to the government in the event of failure to address its problems, stressing that the allocations to the provinces "did not observe the" population density, and that Parliament will make all efforts to accelerate the adoption of the budget, as it will continue meetings of the Council until 15 From next April.

And on an interview with the Minister of Finance, about the possibility of borrowing to pay off the budget deficit and the exchange allocations petrodollars, said Yasiri, that there are "two types of borrowing internal and external, requires first asylum federal government to offer securities lending to financial firms and private banks in return for interest of up to six percent, while borrowing external to resort to the International Monetary Fund. "

He warned members of the Parliamentary Finance Committee, "the government resorting to borrowing internal or external," attributing it to being a "risky Iraqi economy, which may be subject to setbacks in the event of a large debt."

The Minister of Finance Agency, purity of net debt, announced the possibility of borrowing the government nine trillion dinars to repay the funds allocated to the petro-producing provinces, if the House of Representatives voted on it.

He stressed Yasiri, that "the allocation of petrodollars acquired right requires the government to reimburse them and we remain in the event of non-availability of adequate funds," likely "the issuance of bonds to cover the budget deficit, estimated at 23 trillion dinars."

It called a member of the parliamentary Economic Committee, Abdul-Hussein Abtan, "to take a series of steps to correct the federal budget."

He Abtan, a deputy from the Bloc citizens, of the Supreme Council of the Islamic, led by Ammar al-Hakim, said in an interview to the newspaper (range), "The first of these steps is the exchange allocations Alaptroodlar by converting amounts to investment projects holds the provinces to run their affairs," likely to be "All provinces cooperate with the Ministry of Planning for the implementation of Law No. 21, the rate for the governorates."

He criticized a member of the Economic Committee, the trend towards "borrowing to repay the amounts of petrodollars," noting that there is "a large deficit in the budget and the big money in the spending necessary to provide a reduced amount and reduce the budget deficit."

He Abtan, that "the government will take the opinion of Parliament on the borrowing if returned to the budget, and will examine the issue," Msttrda "The House of Representatives saw the absence of contraindications in that subject will be dealt with positively."

The eight provinces of oil, expressed during a meeting held in Basra a few days ago, strongly rejected the government's budget, which reduced the petro-dollar allocations from five to one dollar for every barrel of oil.

As opposed to many of the political blocs to pass the federal budget unless it is to meet the demands of the provinces of oil.

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