British Centre of Development Studies: Iraq has lost more than $ 200 billionWrote: April 2, 2015
Confirmed a report by the International Center for Development Studies and position the British capital of London that Iraq has lost more than $ 165 billion from the Development Fund for Iraq in just six years.
The report pointed out that the Development Fund for Iraq, which was established in 2003 to deposit the sales of Iraqi petroleum products based on resolution 1483 and reached its assets to $ 165 billion in 2009. However, these revenues were prone to corruption where missing $ 17 billion of them in 2003 while announced disappearance another $ 40 billion in 2010.
The report explained that the mismanagement and cases of financial and administrative corruption has made these large balances shrink to reach in 2012 to $ 18 billion only.
In 2013, Iraq Development Fund balances amounted to $ 7 billion, while the Iraqi government has failed to justify the disappearance of $ 11 billion of those stocks.
And the International Center for Development Studies report indicates that there is no day balances in the Development Fund for Iraq while the Iraqi Central Bank, which arrived in 2013 to $ 76.3 billion, is the other reserves had fallen to about $ 68 billion in 2014 and last year, it seems This is particularly surprising and that the Iraqi Central Bank insists on not compromising with the money to maintain the value of the Iraqi dinar stable and steady, especially against the dollar.
And this Iraq have lost most of his money from the $ 203 billion within a few years, while the budgets of Iraq since the year 2003 to the year 2015 exceeded the trillion dollars.
A severe financial crisis
Iraq and passes this year, a severe financial crisis, where spending exceeds revenue amounts due to falling oil prices and the Iraq war being waged in many cities.
In spite of that surplus budgets of Iraq for the period 2006-2014 amounted to 185 trillion dinars, or $ 154 billion, but he did not remain of these funds only $ 5 billion only.
And facing the Iraqi budget fiscal deficit contributed to a significant disruption of thousands of projects while thousands of workers have not received their salaries for several months.
The report indicates that Iraq urgently needs to private sources of funding and that the number of displaced people has exceeded 2.6 million people added to the high number of poor people has grown to more than 10 million people and rising costs of reconstruction of the liberated areas.
It is estimated the World Center for Development Studies that Iraq needs to nearly $ 40 billion in additional compensation for losses resulting from it is added to other amounts to compensate for the losses suffered by the sectors of oil, industry and agriculture.
Global Center for Development Studies report indicates that Iraq's attempts to raise its oil exports to more than 3 million barrels per day, down collides with oil prices and the benefits of international oil companies up to $ 27 billion. The report refers to the need to amend the Iraq oil contracts in line with developments in the oil markets and the ability of companies operating on spending. Despite the fact that oil investments to those companies amounting to $ 147 billion during the period from 2011 to 2016, but it has reduced its spending down financial investment affected revenues.
And the report recommends the International Center for Development Studies Iraq to invest in the gas sector and benefit from the diversification of revenue sources in addition to increasing the contribution of the oil companies in Iraq's development and the reduction of unnecessary expenses to the government sector process.
Spending on protections officials twice oil dues
The report notes that the waste policy in public money and mismanagement burdening the Iraqi economy. Iraq has spent nearly $ 50 billion since 2006 on the protections of senior officials in the Iraqi government what constitutes double the dues of oil companies, while oil policy has not been able to spare Iraq resulting from exports billions of dollars of stop losses.
And in an attempt to avoid a deficit and a further decline in revenues of the Iraqi government is seeking to issue bonds worth $ 12 billion over several payments in addition to the adoption of prepaid oil price mechanism. According to the report, the yield on the bonds, which may range from 8.5% to 9% and for a period of ten years will be associated with the high cost of private insurance and that Iraq is not subject to the terms of credit rating.
And Iraq depends on oil sales to ensure that the bond but the center warns of pre-determine the price of oil, which means that Iraq will sell its oil at a loss of billions of dollars under the pressure of the need to finance the war and the high costs of reconstruction.