Iraq is at risk of bankruptcy in 2017

by **Ponee** Mon Jul 20, 2015 11:42 am

International Center for Studies British development

Iraq is at risk of bankruptcy in 2017 NB-112994-635729724456516199

Warned the International Center for Studies British development, that Iraq is in danger of bankruptcy by the next two years, and will be unable to pay the salaries of its employees, because exceeded the deficit in the fiscal budget of the country for the amount of $ 50 billion.According to a report to the Centre that "the deficit is not justified, the fact that the budget has been prepared on the basis of a price of $ 90 a barrel, while the price of oil not less than $ 100, meaning that the budget must achieve a large surplus, especially as the rates of achievement in most Iraqi provinces did not exceed 40%, and in some of them was zero, "explaining that the amounts retained from previous budgets up to the year 2012 was more than $ 50 billion, raising questions about the real reason to talk about the deficit, if not a new attempt to steal public money and turn of the benefits and personal gain of senior officials in the state. He was surprised at the British Center of managed economists and advisers Government Iraqi of budgeting since 2014, in the absence of a clear final accounts which show the real expenditure of its resources, and allow exchange control orders, indicating clearly on the fears of disclosure, and deliberately hide for fear of disclosure of large financial and administrative corruption suffered by Iraq years ago. " .

The report pointed out that "the deduction of 15% of the allocated oil investment budget has contributed to the reduction of Iraqi exports of 2.62 million barrels per day to 2.28 million barrels during the past three months, what impact clearly on state revenues and plans to increase exports to more than 3.5 million barrel during the year 2014 ". He continued that "the giant oil companies are unable to cope with the volatile environment of the Iraqi economy,

threatening the withdrawal of it, in addition to the security factor of financial and administrative corruption, bureaucracy and a lack of experience and the need for Iraq to infrastructure and the training of 70 thousand workers factor highlights in oil sector to reach the desired goals. " The report noted that "BP has canceled contracts for tens of foreign contractors from the southern Rumaila field, as Eni threatened to withdraw from the Zubair field in Basra because of bureaucratic complications that delayed the signing of a contract for six months." He believed that " Iraq's budget deficit has contributed to weakening the state's ability to establish security, being engaged in a war in Anbar cost the Iraqi economy worth seven million dollars a day, which is exhausting burden on the budget and affect the state's ability to carry other burdens in the defense of the rest of Iraq. " He that "the real deficit in the Iraqi budget has today risen to $ 32 billion in the absence of agreement between Baghdad and Erbil on the export of oil, and the adoption of five dollars in compensation to each province producing oil, and the adoption of laws that do not fit and the ability of Iraq to withstand financial burdens."

The center said in his report that "financial and administrative corruption in Iraq has led to the emergence of a new class of rich and new private entrepreneurs affiliated with the Iraqi government, and who came to get rich quickly, prompting the appearance of the luxury goods market in Iraq, most notably private jets whose prices could reach 16 million dollars, while one-third of the Iraqi people live below the poverty line. "

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