Mid Year...Iraq's 2015 Budget Is Already Spent.

[Luigi1]

from another source...

 

Luigi asks...

What must GOI do to avert a financial disaster?

GOI is completely out of money.

The 2015 budget is already spent.

New taxes & tariffs alone will not make up the shortfall.

Iraq to receive another IMF loan.

IMF loan is a drop in the bucket of what's needed.

Kurd elections are coming in Aug.

What must Iraq do to increase purchasing power of the IQD?

 

 

 

 

 

6-14-2015   Newshound/Intel Guru BGG   Ok - so stop and think about this for a sec...Iraq's 2015 Budget was roughly 119 Trillion IQD...today is June 13th - almost EXACTLY half way thru the year...the other day they went public with their "true deficit" as 30% the budget... (of 119 T) - in other words more like 40+ Trillion IQD (40 Billion USD).  I have been saying this - right? The deficit was waaaay more than 25 Trillion (IQD).  So 50% of their budget and remaining year is likely GONE...surely they have spent the full budget allocation during the first half of the year...so they probably have only 20% of their budget left (of 119T IQD) to cover 50% of the remaining year...at a current rate of a bit over 10T IQD per month... they have a tiny bit over 2 months before they run out of money completely.   So where does it come from?  Has no one bothered to read the fine print on the loan articles?  They aren't even close - and if they were, the loans were for like 833 mil... 9 mil... 5 bil (if they GET a credit rating and their bond issues sell... lots of "if's")... and not until past June...

 

 

6-13-2015   Newshound Guru Aggiedad77   Article:  "Central bank: borrowing from the IMF will achieve the required targets Iraq"  The governor of the CBI is speaking out today with regard to the pending potential loan from the IMF for $833 million dollars, stating this will aid supporting the budget as well as reducing the deficit...well yes to both...certainly such an amount would help the budget and potentially reduce the deficit "some"...but not significantly IMO...What it can perhaps do on a more positive note is improve Iraq's credit standing and allow them a higher credit rating...this having merit when you rethink the international bonds they are trying to move and need as good a credit rating as possible to make them look as lucrative to investors as possible...one scratch leads to another...building confidence in Iraq on a global level

 

 

6-13-2015   Newshound Guru Aggiedad77   "Determine the August/August as the date for the next elections presidency of the region"  So President Barzani is saying that August will see a new election day for the Kurds...does not say anything about whether the Barzani family will be allowed to continue in their current reign as President and PM...but I'm thinking that is doubtful.

 

[sandfly]

THANKS

[jg1]

Spent or Laundered. Now show us what you spent it on. 

[Luigi1]

Spent or Laundered. Now show us what you spent it on. 

 

 

More than likely laundered. Corruption is still the biggest threat to their free market economy.