Iraq to prevent financial crisis

ERBIL, Kurdistan Region (K24) –On Thursday, Hoshyar Zebari, the Finance Minister of Iraq, said that 2016 can be a financially challenging year for Iraqis.

In a press conference, Zebari explained the direct impact of oil on the Iraqi revenues. However, he reassured the audience that the government is trying to prevent a potential economic crisis. 

“We have plans to make positive changes in our economy to make 2016 a successful year,” he said.

He also stressed that the country needs financial transparency. “We will share documents with people so that they are aware of the revenues and expenditures,” Zebari added.

“More than 90 percent of Iraq’s revenues depend on oil. We have enormous public spending that needs to be cut, and we have pulled out more than 5 trillion IQD [Iraqi Dinar] from various banks to run the financial affairs and cover the government expenditures,” he said.

According to Zebari, “Iraq estimated the price of oil in 2016 is $45 per barrel, so to fill the gaps in revenue, the government has been trying to get loans from the World Bank and international companies.”

Zebrai also mentioned some of the strategies the government has implemented. “Despite the high expenditure in the military sector, we were able to deal with the financial crisis, manage our financial duties, and pay the salaries of the government employees,” Zebari said.

Zebari acknowledged that the Kurdistan Region also has economic issues. "If the Kurdistan Regional Government (KRG) exports crude oil through Baghdad, the Iraqi Federal Government will have to send the KRG’s budget share.”