Tuesday, January 25, 2011
Current oil prices will fill a budget deficit in Iraq
An official at the Iraqi Finance Ministry on Tuesday that Iraq would fill a budget deficit in 2011 - which is expected to reach $13.6 billion - if oil prices remain at current levels.
The budget is still subject to negotiations between the political blocs after referred several times between the parliament and the government.
The estimated latest draft of the budget expenditures by about $80 billion assuming an average oil price at $76.50 a barrel and an average crude oil exports of 2.25 million barrels per day.
And expects a deficit of $13.6 billion.
Fadel said the Prophet, and Undersecretary of the Ministry of Finance said Iraq does not need to borrow to cover the deficit by issuing bonds or both of the International Monetary Fund or the World Bank if the price of oil at about $97 a barrel this year.
He said in an interview with Reuters that if the oil price remains high, Iraq will be safe.
He added that Iraq would cover the deficit, then the entire loan without the need for internal or external.
The Prophet said he expected prices to average about $80 a barrel in 2011, which will allow the financing of the deficit through treasury bills sold to the Iraqi banks.
Current oil prices will fill a budget deficit in Iraq
An official at the Iraqi Finance Ministry on Tuesday that Iraq would fill a budget deficit in 2011 - which is expected to reach $13.6 billion - if oil prices remain at current levels.
The budget is still subject to negotiations between the political blocs after referred several times between the parliament and the government.
The estimated latest draft of the budget expenditures by about $80 billion assuming an average oil price at $76.50 a barrel and an average crude oil exports of 2.25 million barrels per day.
And expects a deficit of $13.6 billion.
Fadel said the Prophet, and Undersecretary of the Ministry of Finance said Iraq does not need to borrow to cover the deficit by issuing bonds or both of the International Monetary Fund or the World Bank if the price of oil at about $97 a barrel this year.
He said in an interview with Reuters that if the oil price remains high, Iraq will be safe.
He added that Iraq would cover the deficit, then the entire loan without the need for internal or external.
The Prophet said he expected prices to average about $80 a barrel in 2011, which will allow the financing of the deficit through treasury bills sold to the Iraqi banks.
He stated that borrowing from the Central Bank of Iraq is not needed.
The government asked the Iraqi parliament in the previous approval of a supplement to the budget allows it to borrow from the central bank.
But the Prophet said that the Ministry of Finance has asked Parliament to cancel this item.
Last week, the Supreme Court ruled in Iraq at the request of Prime Minister Nuri al-Maliki put the central bank under the supervision of the government rather than parliament.
The ruling sparked a wave of criticism, which said that al-Maliki is trying to gather power in his hand.
The Prophet said that he expected to press the International Monetary Fund on Iraq to reverse this decision.
He stated that he expected to be Iraq's budget in 2012, the largest about ten trillion dinars (8.5 billion dollars) from its balance this year thanks to increased oil exports.
The Prophet said that the budget of 2011, including 2.5 trillion dinars for the payment of international oil companies operating in Iraq, including those working in the Kurdistan region.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://www.theiraqiobservatory.com/strategy-in-iraq/american-strategy-in-iraq/republic-party/475---q--q---------.html&rurl=translate.google.com
The government asked the Iraqi parliament in the previous approval of a supplement to the budget allows it to borrow from the central bank.
But the Prophet said that the Ministry of Finance has asked Parliament to cancel this item.
Last week, the Supreme Court ruled in Iraq at the request of Prime Minister Nuri al-Maliki put the central bank under the supervision of the government rather than parliament.
The ruling sparked a wave of criticism, which said that al-Maliki is trying to gather power in his hand.
The Prophet said that he expected to press the International Monetary Fund on Iraq to reverse this decision.
He stated that he expected to be Iraq's budget in 2012, the largest about ten trillion dinars (8.5 billion dollars) from its balance this year thanks to increased oil exports.
The Prophet said that the budget of 2011, including 2.5 trillion dinars for the payment of international oil companies operating in Iraq, including those working in the Kurdistan region.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://www.theiraqiobservatory.com/strategy-in-iraq/american-strategy-in-iraq/republic-party/475---q--q---------.html&rurl=translate.google.com
