Iraq is in a “critical situation” … $ 6 billion to fulfill its obligations
A member of the Parliamentary Finance Committee revealed, on Thursday, that Iraq needs 6 billion dollars to fulfill its domestic and international obligations, indicating that it is still going through a critical stage.
“Oil was sold at $ 21 and after subtracting the cost, we only get $ 10 of oil,” MP Ahmed Hama Rashid told Shafaq News, stating that “after the current oil price rises, the government gets $ 3 billion a month. If border ports are well controlled and managed, one billion dollars can be obtained from these ports. ”
Rashid added, “Iraq does not need more than this amount to pay the salaries of employees if it undertakes the process of austerity in state administration,” explaining that “through borrowing, it can bridge the investment gap and other service issues .”
Rashid stressed that “Iraq is still going through a critical stage until now and needs 3 billion dollars a month to pay the salaries of employees and retirees, but other issues and duties, including the ration card and international obligations, Iraq needs 6 billion dollars to fill these things .”
Rashid pointed out that “through loans and other alternatives that until now the government did not turn to, including financing by inflation and adjusting dollar prices, Iraq can go beyond the critical stage .”
Iraq suffers from a deficit in its public budget due to the low oil prices, which constitute 90% of this budget, which led the government to borrow to pay the salaries of employees and retirees, and to stop investment projects for this year. Source