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Report: The rise in Iraq's cash reserves to 63 billion dollars
Information / translation ...
The British newspaper The National confirmed on Sunday that, according to the report of the International Finance Institute, widespread corruption, weak regulatory framework and poor business environment prevent the growth of the private sector in Iraq , noting that Iraq’s reserves have risen to 63.6 billion dollars.
The report, which was translated by the information agency, stated that “the current political instability and the continuing turmoil in Iraq could lead to a reduction in the gross domestic product of oil for the fourth quarter of this year, and that the continuing political uncertainty and demonstrations in Iraq could cripple the country’s economy Really fragile. ”
He added that "according to the estimates of the World Bank, the damages of the war (against ISIS ) in Iraq amounted to 46 billion dollars, while the reconstruction process requires 23 billion dollars, in addition to 65 billion dollars over the next five years, thus bringing the total cost to about 88 billion dollars."
The report continued, “The ongoing internal political instability in Iraq and possible elections without clear winners could lead to significant delays in reconstruction and a vacuum in power that gives way to revitalizing armed terrorist groups, and further deterioration in the financial situation may lead to bypassing private sector credit and paying Public debt to unsustainable levels, and domestic instability means that foreign flows earmarked for reconstruction have not materialized, and low oil prices have weakened the external position of Iraq, which has put more pressure on official reserves.
The report stated that, "while official reserves are still sufficient at $ 63.6 billion in September of 2019, the Iraqi economy is controlled by 160 ineffective state-owned enterprises that employ a large proportion of the workforce outside the oil industry. The report said that widespread corruption, a weak regulatory framework and a poor work environment prevent the development of the private sector, job creation and foreign investment flows.
He pointed out that "the increase in the wage bill undermines the financial situation of Iraq, it is expected to rise by 18 percent in the next year, and its share of total expenditures will rise to 52 percent, or 17 percent of GDP. Since oil revenue accounts for 90 percent of total government revenue, low oil prices and poor tax collection can turn the country's financial balance from a small surplus in 2018 to a deficit of 4 percent of GDP this year. Ended / 25 z
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