Minister of Finance: Central Bank reserves were 59 billion reserve some of the employees' salaries as loans

[yota691]

Minister of Finance: Central Bank reserves were 59 billion reserve some of the employees' salaries as loans [expanded]

History of edits:: 2016/1/4 15:53 ​​• 127 visits readable

[baghdad - where] 
Finance Minister Hoshyar Zebari, said the Iraqi Central Bank reserves fell to $ 59 billion, revealing that he was thinking not to grant a full staff salaries and keep some loans, due to lower oil prices.

According to Zebari, in a newspaper interview, seen by the agency all of Iraq [where], that "2016 will be a difficult year for Iraq, because 2015 was difficult, and our expectations in the Ministry of Finance indicate that this year will be more difficult, but not the whole year, is expected to rebound The price of oil in the month of September of this year, noting that 90% of Iraq's economy depends on oil, so We had our calculations in order to know what we will do. 
"He explained," In the past year, we have succeeded in the distribution of salaries, but this year According to the available I have to estimates, we may be exposed to the problematic in the month of April may not be able to distribute the employees' salaries for that month, and this is a reality, and people should know. 
"On the possibility of high oil prices, the finance minister said," There are many parties estimated the price of oil, and private companies to oil prices, companies legal, international banks and big, "pointing out that" the issue of oil price linked to supply and demand, when it increased the offer said price, said to be the aspect ratio will be reduced in the autumn of this year, affecting the price of oil, which has happened, the issue is oil linked to the situation, which passes the world economy, but oil will remain conservative on its value as a commodity strategy. 
"He added that" oil prices reached this level previously also, but rose later, "adding," but at this time no one can, not even Iraq to continue on the previous policy, because it is impossible live on oil revenues only, The price of a barrel of oil dropped from $ 120 to $ 30, and if it merely dependence on oil, everything would be paralyzed, may come a time when the distribution of salaries can not even, so you should think about all the economic resources. 
"He noted that "there are several alternatives [oil], including borrowing from international institutions, few benefits, and we did it. For example we have received help from the International Monetary Fund, and a few days ago we received one billion and 200 million dollars from the World Bank, we have introduced a monitoring program on how we manage financial and economic policy, and if we could get help more of them, as we intend to sell sovereign bonds, because the situation in Iraq this year better than last year in this regard. 
"He explained that" The other option is how to raise the Iraqi dinar exchange rate, although Choose the risk and could have repercussions, but we thought of not granting full salaries, and to keep some of our loans, and give a document that we will give money when the offer we have, and the other option is to sell oil and receive money in advance, in addition to raising the pricing of services option water, electricity and fuel, but it is not easy, any government applied be subject to the reactions of citizens, economic and making painful, but it is said that any economic decision, if not painful, it is not a decision, and there are seven million people are paid salaries of Iraq's total population of 36 million, and distribute monthly estimated four billion dollars in salaries. 
"And the Peshmerga allocations, within the general budget, said:" In these two years have been prepared in the financial budget for Iraq in a timely manner, and this did not happen in the history of Iraq, and we have talked with the presidency of the Kurdistan region and the presidency of the government to try to stabilize the share of the Kurdistan region of the budget as it is installed in the last year, we preserve the share of the Kurdistan region as a duty lying upon us, and if the Kurdistan region oil passed through the SOMO it will provide him with the budget of actual expenditures, because it no longer funds to Iraq. 
"and" about the Peshmerga budget, they exist in the budget, the Peshmerga budget within the constituent political program of the government, which is calculated within the Iraqi ground forces, and we have to secure that the budget for a period of six months, in accordance with the oil agreement between Erbil and Baghdad, but suspended later, and now when we talk with the government says it is ready to give it. " 
He pointed out that "the money is available, a few days ago I spoke at the Council of Ministers for not sending them salaries of the Peshmerga, they said they did not decide not to Ersloh because there are internal problems, we said that it can not take this as an excuse not to send Peshmerga budget," explaining, "I mean it There are not any decisions not to send Peshmerga budget, but Abadi is who should make this decision as commander in chief of the armed forces. 
"and awarded Balancing the popular crowd, without the Peshmerga, Zebari said:" The government is a government of the crowd, a Shiite government, and they make up the majority said, But you have three or four ministers [Kurds Minister], and the salaries of the Peshmerga not send the government, whose president is the commander of the armed forces, balancing the Peshmerga not have to Ohjbha not sent, balancing the Peshmerga calculated on balancing the Iraqi Ministry of Defense, "he" did not send any money Peshmerga since June of last year. "and Kurdish politicians stand in Baghdad, from the budget of the Peshmerga, between" Unfortunately, the position of the Kurds in Baghdad is not uniform, the role of the Kurds in Baghdad was weak, but their position regarding the budget was united, yes, some parties told Ebadi that money that goes to the Peshmerga benefit of only one party, and this is one of the reasons that prompted Abadi, not to send money to the Peshmerga. "" We have some things revealed to the citizens, it is true that we are talking about do not send the budget, but this does not mean that the Iraqi government does not have any commitment to the Kurdistan region, there are expenses sovereign, oil, medicine, gasoline and food, and the Iraqi government have spent all those materials to Kurdistan, there are sovereign institutions in Iraq, such as border guards, nationality and the rights of peasants and their salaries ongoing, and the border guards understand by Ministry of Interior, and we spend the operating budget of the Ministry of month . "and the disbursement of dams in the province of Kurdistan, said," I think so, it is within the billion and $ 200 which Aguetrdhanaha of the World Bank; been allocated 200 million Mosul Dam."With regard to pay the salaries and expenses of border crossings in the region, said the" the Kurdistan region is not revenues border crossings be sent to Baghdad. "and whether the provinces of the region granted share within the provincial development budget, assured Zebari" granted but is not complete, when we rationalize expenses included all areas, including the provincial development, but gave us the privacy of the province of Kirkuk, As for the Halabja has The budget last year as part of Sulaymaniyah budget but dedicated her something within the budget this year. "On Iraq, the annual debt, the finance minister pointed out that" a lot of debt, and we rate them annually, which exalts the Iraqi state, but the Paris Club loan will not rise Since our signature Agreement agreed to cancel 80% of Iraq's debt to pay off only 20% of them in the form of premiums, our internal and external debt of $ 30 billion, which is few compared with other countries. "and the total imports Iraq, pointed out the Minister of Finance, that" Iraq's budget 105,000,000,000,000 dinars, the actual revenues of 80, and the deficit 25 trillion, and we agreed with the IMF on the need to have revenues equal expenses, and we are in the test this year. "Themeeting dealt to the Central Bank, where he explained the Minister of Finance that the bank reserve" was a $ 70 billion in Previously, but fell to 59 billion, and we can not manipulate it, and for the salvation of the crisis in Iraq could be the central bank that the Iraqi government supports the $ 7 billion. "Turning Zebari in his speech to the oil agreement between Baghdad and Erbil, saying," Both sides did not abide by agreement "pointing out that" the relationship between Arbil and Baghdad is not related only to the budget, there is a range of commercial and security ties between them, there is a set of relationships needed by the parties, the country's federal but some of the people who were or are still in the government do not understand it, but I see that Iraq will step more towards federalism steps, and currently there are relations between Erbil and Baghdad, and Massoud [President of Kurdistan, Massoud Barzani talked several times with Iraqi Prime Minister by telephone, and the messages between the two exchanges, and there are delegations. "and asked about the reason for the failure of the delegation from the region to visit Baghdad as planned for him, replied, Zebari said "I do not know the truth, you are a mediator to go delegation to Baghdad, and got approval were determined deadline, but Baghdad was the cause once, as was the other reason once too," he said. "Nothing better to negotiate" . On the possibility of the formation of the territory for the year in Iraq, Zebari said, "they are entitled according to the constitution, but it depends on the leaders of the year, and whether they prefer to become provinces such as the Kurdistan region, and I believe that Iraq will step more towards federalism in the future steps," noting "my conviction Iraq as a country has a lot of political, economic and regional ingredients, to get a strong external support. "and asked about the extent of approved Kurdish state and is it close or distant, he replied Zebari, as a former foreign minister," it remains subject to estimates circumstances, the Kurds have the right to self-determination , and this is contained in the preamble to the Constitution, which says that the Iraqi people remain together as long as it is committed to the Constitution, but if the constitution broke The opportunities available, and I say that this government is better than the previous government, there is room for us to reach several agreements with them, the government is looking for more solutions and appreciates the situation in Kurdistan, with an estimated internal problems in the Kurdistan region, and make itself a party. " However, "I'm not trying to justify to the Government of al-Abadi, but this government does not have the intention to anti-Kurds, which is better than the previous government, for example, it did not create any problem for the Kurdistan Regional Government that oil sells independently since June of last year, but this has a lot of failure. "With regard to the problems between the region and the center, Zebari confirmed that the problems did not abound," because there was a mechanism to resolve, a continuous " . and around the figure of Prime Minister Haider al-Abadi, Zebari said, "Abadi difficult to deal said, but he collaborator, in a lot of cases, frequented in the making, but receives support from all parties at home and abroad, is said to be an opportunity for Iraq to rid it of the war against terrorism and to move The government toward reform, and not be a sectarian government, or returning to Iran, so has received greater support from the previous government. "felt Zebari that he would be" a good thing ", as if a new agreement between Baghdad and held Arbel.anthy 

 

[TQueezy]

""He explained that" The other option is how to raise the Iraqi dinar exchange rate,"
 

 

Oh, really? Really, Zebari? Please elaborate.

[tigergorzow]

Yota Thanks, TQueezy, I do believe he let that phrase slip out. Nonetheless, It is in black and white print.

If Iraq desires to re enter the International market the IQD value will increase IMHO.

[newbieDA]

some highlighting

 

Minister of Finance: Central Bank reserves were 59 billion reserve some of the employees' salaries as loans

2016/1/4

 

[baghdad - where]

 

Finance Minister Hoshyar Zebari, said the Iraqi Central Bank reserves fell to $ 59 billion, revealing that he was thinking not to grant a full staff salaries and keep some loans, due to lower oil prices.

 

According to Zebari, in a newspaper interview, seen by the agency all of Iraq [where], that "2016 will be a difficult year for Iraq, because 2015 was difficult, and our expectations in the Ministry of Finance indicate that this year will be more difficult, but not the whole year, is expected to rebound The price of oil in the month of September of this year, noting that 90% of Iraq's economy depends on oil, so We had our calculations in order to know what we going to do. "

 

"In the last year, we have succeeded in the distribution of salaries, but this year, according to estimates available to me, we have exposed to the problematic in the month of April may not be able to distribute the employees' salaries for that month, and this is a reality, and people should know."

 

On the possibility of high oil prices, the finance minister said, "There are many parties estimated the price of oil, and private companies to oil prices, legal and companies, large global banks," pointing out that "the issue of oil price linked to supply and demand, when it increased the offer said rates, and said The aspect ratio will be reduced in the autumn of this year, affecting the price of oil, which has occurred, the oil issue is linked to the situation which is going through the global economy, but oil will remain conservative on its value as a commodity strategy. "

 

"The oil prices reached this former level too, but rose later," adding, "but at this time no one can, not even Iraq to continue on the previous policy, because it is impossible to live on oil revenues only, The price of a barrel of oil has fallen from 120 dollars to $ 30, and if it merely dependence on oil, everything would be paralyzed, was a time when the distribution of salaries can not even come, so you should think about all the economic resources. "

 

He pointed out that "there are several alternatives [oil], including borrowing from international institutions, few benefits, and we did it. For example we have received help from the International Monetary Fund, and a few days ago we received one billion and 200 million dollars from the World Bank, we have introduced a monitoring program on how to Our management of financial and economic policy, and if we could get help more of them, as we intend to sell sovereign bonds, because the situation in Iraq this year better than last year in this regard. "

 

He explained that "The other option is how to raise the Iraqi dinar exchange rate, and although it choose the risk and could have repercussions, but we thought of not granting full salaries, and to keep some of our loans, and give a document that we will give money when the offer we have, The other option is to sell oil and receive money in advance, in addition to raising the price of water, electricity and fuel service option, but it is not easy, any government applied be subject to the reactions of citizens, economic and making painful, but it is said that any economic decision, if not painful, it is not the decision of , there are seven million people are paid salaries of Iraq's total population of 36 million, and distribute monthly salaries of an estimated four billion dollars. "

 

And the peshmerga allocations, within the general budget, said: "In these two years have been prepared in the financial budget for Iraq in a timely manner, and this did not happen in the history of Iraq, and we have talked with the presidency of the Kurdistan region and the presidency of the government to try to install the Kurdistan region's share of the budget as it is installed in the last year, We preserve the share of the Kurdistan region as a duty lying upon us, and if the Kurdistan region oil company SOMO issued through it will provide him with the actual expenditure of the budget, because it is no longer money to Iraq. "

 

And "concerning the Peshmerga budget, they are found in the budget, the Peshmerga budget within the constituent political program of the government, which is calculated within the Iraqi ground forces, and we have to secure that the budget for a period of six months, in accordance with the oil agreement between Erbil and Baghdad, but suspended later, and now when we talk with The government says it is ready to give it. "

 

He pointed out that "the money is available, a few days ago I spoke at the Council of Ministers for not sending them salaries of the Peshmerga, they said they did not decide not to Ersloh because there are internal problems, we said that it can not take this as an excuse not to send Peshmerga budget," explaining, "I mean it There are not any decisions not to send Peshmerga budget, but Abadi is who should make this decision as commander in chief of the armed forces. "

 

And granting Balancing the popular crowd, without the Peshmerga, Zebari said: "The government is a government of the crowd, a Shiite government, and they make up the majority, but you have three or four ministers said Minister of the Kurds, and the salaries of the Peshmerga not send the government, whose president is the commander of the armed forces, Peshmerga budget I do not have to Ohjbha not sent, the Peshmerga calculated balancing the budget of the Iraqi Ministry of Defense, "he" did not send any money to the Peshmerga since June of last year. "

 

And Kurdish politicians stand in Baghdad, from the budget of the Peshmerga, between "Unfortunately, the position of the Kurds in Baghdad is not uniform, the role of the Kurds in Baghdad was weak, but their position regarding the budget was united, yes, some parties told Ebadi that the funds that go to the Peshmerga benefit of only one party , and this is one of the reasons that prompted Abadi, not to send money to the Peshmerga. "

 

"We have some things revealed to the citizens, it is true that we are talking about do not send the budget, but this does not mean that the Iraqi government does not have any obligation to the Kurdistan region, there are expenses sovereign, oil, medicine, gasoline and food, and the Iraqi government have spent all those materials to Kurdistan, there are sovereign institutions in Iraq, such as border guards, nationality and the rights of peasants and their salaries ongoing, and the border guards understand affiliated to the Ministry of the Interior, and we spend the operating budget of the Ministry a month. "

 

And the disbursement of dams in the province of Kurdistan, said, "I think so, it is within $ 200 billion and which Aguetrdhanaha of the World Bank; 200 million have been allocated to meet the Mosul".

 

With regard to pay the salaries and expenses of border crossings in the region, he said the "province of Kurdistan does not send the proceeds of the border crossings to Baghdad."

 

And whether the provinces of the region granted share within the provincial development budget, Zebari stressed, "given but is not complete, when we rationalize expenses included all areas, including the provincial development, but gave us the privacy of the province of Kirkuk, As for the Halabja was balanced last year as part of Sulaymaniyah budget but we We dedicated her something within the budget this year. "

 

On Iraq, the annual debt, the finance minister pointed out that "a lot of debt, and we rate them annually, which exalts the Iraqi state, but the Paris Club loan will not rise since the signing of the Convention agreed to cancel 80% of Iraq's debt to pay off only 20% of them in the form of premiums , our internal and external debt of $ 30 billion, which is few compared with other countries. "

 

And total imports Iraq, pointed out the Minister of Finance, that "Iraq's budget 105 trillion dinars, the actual 80 and revenues, and the deficit 25 trillion, and we agreed with the IMF on the need to have revenues equal expenses, and we are in the test this year."

 

The meeting dealt to the Central Bank, where he explained the Minister of Finance that the bank reserve "was a $ 70 billion in the past, but fell to 59 billion, and we can not manipulate it, and for the salvation of the crisis in Iraq could be the central bank that the Iraqi government supports the $ 7 billion."

 

Turning Zebari in his speech to the oil agreement between Baghdad and Erbil, saying, "Both sides did not commit themselves to the agreement," pointing out that "the relationship between Arbil and Baghdad is not related only to the budget, there is a range of commercial and security ties between them, there is a set of relationships needed by the parties , the country's federal but some of the people who were or are still in the government do not understand it, but I think that Iraq will step more towards federalism steps, and currently there are relations between Erbil and Baghdad, and Massoud [President of Kurdistan, Massoud Barzani] several times spoke with Iraqi Prime Minister telephoned , and messages are exchanged between them, and there are delegations. "

 

And asked about the reason for the failure of the delegation from the region to visit Baghdad as planned for him, he replied, Zebari said "I do not know the truth, you are a mediator to go delegation to Baghdad, and got approval were determined deadline, but Baghdad was the cause once, as was the other reason for visits also "stressing" nothing better than to negotiate. "

 

On the possibility of the formation of the territory for the year in Iraq, Zebari said, "they are entitled according to the constitution, but it depends on the leaders of the year, and whether they prefer to become provinces such as the Kurdistan region, and I believe that Iraq will step more towards federalism in the future steps," noting "I am convinced that Iraq as a country has a lot of political, economic and regional ingredients, to get a strong external support. "

 

And asked about the extent of approved Kurdish state and is it close or distant, he replied Zebari, as a former foreign minister, "it remains subject to estimates circumstances, the Kurds have the right to self-determination, and this is contained in the preamble to the Constitution, which says that the Iraqi people remain together as long as it is committed to the Constitution But if the constitution broke The opportunities available, and I say that this government is better than the previous government, there is room for us to reach several agreements with them, the government is looking for more solutions, and appreciates the situation in Kurdistan, with an estimated internal problems in the Kurdistan region, and make itself a party In which".

 

However, "I'm not trying to justify to the Government of al-Abadi, but this government does not have the intention to anti-Kurds, which is better than the previous government, for example, did not create any problem for the Kurdistan Regional Government that oil sells independently since June of last year, but with this has a lot of failure. "

 

With regard to the problems between the region and the center, Zebari stressed that the problems did not abound, "because there was a mechanism to resolve, which is ongoing."

 

And around the figure of Prime Minister Haider al-Abadi, Zebari said, "Abadi difficult to deal said, but he collaborator, in a lot of cases, frequented in the making, but receives support from all parties at home and abroad, is said to be an opportunity for Iraq to rid it of the war against terrorism and to move government toward reform, and not be a sectarian government, or returning to Iran, so it has received greater support from the previous government. "

 

Zebari and saw that he would be "a good thing", as if it were a new agreement between Baghdad and held Arbel.

Edited January 4, 2016 by newbieDA

[SgtFuryUSCZ]

***///

Yuh... don't pay out all that money in salaries... yer gonna need it to RV our Deenar. 

[new york kevin]

You know what I don't get is why when the budget is tight, Iraq, and local governments go to response is xyz not paying the employees. Government employees only I presume. This seems to happen frequently. The GOI and the KRG for example. Do these effected employees just keep on working even though they aren't getting paid? Does the GOI and or state government agencies ever pay back the past due salary amounts? That too (payment of past due salaries) seems to be a negotiated point. Why don't the employees strike or have blue flu when they don't get paid?

Eh, its probably just me.

[Theseus]

For comparison sake:

 

In 2008 the total number of USA Federal employees was at an all time high of approximately 22.4 million out of a population of approximately 304 million.  This equates to 7.38% of the population is employed by the Federal Government. Or one Federal employee for every 13.5 people in the US. Note this is for Federal employees, State employees and Local employees that are Full-time and Part-time. 

 

Iraqi government employees approximately 7 million people out of a total population of approximately 36 million. This equates to 19.44% of the population is employed by GOI. Or one GOI employee for every 5.14 people in Iraq.

 

USA Federal employees; 1:13.5

GOI employees: 1:5.14 

 

Its no wonder why Iraq is spending so much on their governmental employees; 20% of the country works for the government.

Edited January 4, 2016 by Theseus

[sandfly]

THANKS

[calkid11]

Thank you

[newbieDA]

do or die time for Iraq!

 

 

"The oil prices reached this former level too, but rose later," adding, "but at this time no one can, not even Iraq to continue on the previous policy, because it is impossible to live on oil revenues only, The price of a barrel of oil has fallen from 120 dollars to $ 30, and if it merely dependence on oil, everything would be paralyzed, was a time when the distribution of salaries can not even come, so you should think about all the economic resources. "