Experts warn.. Iraq on the brink of financial collapse
report of IFBMC
Officials and experts on Iraq’s parliamentary finance committee warned Friday in a statement. From the disintegration of the Iraqi state and the end of its existence as one of the horrifying scenarios about the political and financial situation in Iraq, depending on the risks of the collapse of oil prices and the inflation of debt on the one hand and the crisis of facing the Corona epidemic in Iraq and the world.
“The Iraqi government’s 2020 budget of 156 trillion Iraqi dinars … Deficit of 50 billion U.S. dollars | 55 trillion Iraqi dinars was built on the basis of a difference in the price of a barrel of Iraqi oil 54 US dollars – on the production of 3 million and 800,000 barrels of oil per day, which means that the total incoming is 111 trillion Iraqi dollars.”
He added: “The main charges are salaries of 53 trillion Iraqi dollars – 48 billion dollars, operating expenses 72 trillion Iraqi dinars, a total of 125 trillion Iraqi for operation and salaries.”
“If we assume the price of oil 30 dollars will settle later at best instead of the current oil price of 25 dollars – the current price of oil is 50% lower than the oil price assumed by the budget and even more – it is deducted 11 dollars per barrel as the rate of production between the fields in the Iraq oil agreement with Another $5 per barrel, which is called public debt service (IMF, international lenders, compensation, external and domestic debt), is deducted from the price of oil per barrel regardless of the selling price.”
He noted: “The Iraqi company Sumo does not sell the price of a barrel on the basis of Brent crude on the market but with lower spreads ranging from 3 to 7 dollars, and therefore the price of a barrel of Iraqi oil is less (-20 to 23 dollars).”
He warned: “The shocking figures that we are talking about are not inspired by imagination, but from the papers that i have in the Iraqi budget, which means that Iraq at the current price sells itself for free.” The Corona epidemic and its global repercussions on Iraq.”
“Iraq in the coming months will not be the same as before and the country is in a storm that this political class cannot deal with right now,” he said.
The Central Bank of Iraq data showed that foreign exchange sales worth $207.12 million were carried out at the auction held last Wednesday