Today, 08:45 AM
Confirmed that Iraq has squandered $ 18 billion as a result of mismanagement
Zebari: the current crisis as an opportunity to expose the weaknesses of the economy
Finance Minister, Hoshyar Zebari acknowledged that Iraq has squandered $ 18 billion was in the Development Fund in 2013 as a result of mismanagement, while between that coincided appearance Daash with falling world oil prices, exacerbated by Iraq's financial crisis,
saying that the current situation is an opportunity to expose the citizen weakness in the national economy and restructuring and diversifying sources of income, breaking the traditional mentality through the imposition of taxes to save money.
Zebari said, according to the newspaper Financial Times Financial Times UK, said that Iraq has squandered what possessed of cash during confront the sharp drop in oil prices, and that he spending huge sums to cover the cost of war against al Daash,
what make it imposes a series of austerity measures, pointing out that the money that was in the Development Fund in 2013, amounting to $ 18 billion, squandered because of poor management, is no longer with the Iraq-based mechanism to cushion the shock.
The Minister of Finance, that the fall in global oil prices and the emergence of a threat Daash, aggravated it worse for Iraq, recognizing that the current 2015 will be difficult, as the ministry which will have to pay the lists of national expenditures month by month.
Saw Zebari, Iraq needs to restructure comprehensive of its economy, and to diversify sources of national income guarantee for new financial returns.
The newspaper reported that the Iraqi budget anticipates receiving other income is estimated to 13 billion dollars by imposing new taxes on mobile phone networks and cigarettes, cars and Services the internet.
Commented Finance Minister to impose such taxes, saying, that the Iraqis are not accustomed to the subject of taxes, they consider that everything is free, returned to taxation aims to break the economic mentality that we're used to, as well as being a way to save money.
He said Zebari, that the crisis current in Iraq represents an opportunity to look deeply to reality if the national economy, revealing weaknesses in the structure, pointing out that the government is in talks with the International Monetary Fund to get two billion dollars in grants development to cover the cost projects in the sectors of electricity and agriculture.
He ruled out the Iraqi Minister of Finance, the withdrawal of funds from Central Bank reserves amounting to $ 67 billion, fearing the impact on the value of the dinar, afterthought, but the government may consider borrowing from abroad.
He said Zebari, the main priority for the country now is after maintaining the momentum of the face Daash, securing liquidity for the disbursement of state employees totaling three million and 500 salaries A person,
Msttrda that public employees' salaries the most important priority for the Ministry to ensure not to create a backlash against the government, because they pose a problem if it is delayed even for five days or ten.
For her part, the FT, The Baghdad postponed or delayed, dues exchange more than 550 thousand workers from the public sector, working in 176 plants owned by the government, the majority of non-benefit.
And on the Finance Minister, Hoshyar Zebari, the supposed workers to those that work to produce and then sell their products to finance themselves, but he also, but they do not.
It is noteworthy that the prices Global oil dropped since the summer of 2014 the past, more than 60 percent, to reach below fifty dollars a barrel, before re-boarding the past few days.
The past period many demonstrations to the staff of the Ministry of Industry and Minerals self-financing companies, the majority of the provinces, to demand by converting them to the central funding and disbursement of overdue salaries, before deciding the Iraqi Council of Ministers, in (the tenth of February, the current 2015), getting paid for one month.