Iraq to Cut 2016 Spending
World Economy

Iraq to Cut 2016 Spending

Iraq, pressured by lower-than-expected oil prices, will cut non-oil spending in its 2016 budget by 15% and take on several billion dollars in international debt, it said in a memo which the International Monetary Fund released on Thursday.
OPEC’s second-largest producer, which relies on oil exports for nearly all its revenue, has sought donor support amid a collapse in global crude prices and a costly war against Islamic State militants that has displaced more than 3.4 million people, Reuters reported.
Iraq’s parliament in December approved a 2016 budget of 105.8 trillion Iraqi dinars ($90 billion), with a deficit of 24 trillion dinars.
The government now expects the deficit to narrow to $4.9 billion in 2016 and then to $13.2 billion during 2017-19, it said in a June letter to the IMF requesting a Standby Agreement.
The IMF approved the SBA last week, granting access to an initial tranche of $1.9 billion in loans.
Iraq said other financing sources for this year’s deficit would include more than $2 billion in loans from the World Bank, partially guaranteed by France, the United Kingdom and Canada, and over $3 billion in loans from the United States and other lenders.
The authorities will also rely on a $1 billion bond with full guarantee of the United States and $1 billion Eurobond issuance in the last quarter of 2016.
Iraq last sold international debt in 2006, when it issued about $2.7 billion of bonds due in 2028 with a coupon of 5.8%.
The government plans to draw down its foreign exchange reserves over the next few years to help supplement that financing. It projects they will bottom out at $31.5 billion in 2020 from $59 billion in October.


Short URL : http://goo.gl/hU9pWk
  1. http://goo.gl/506LBd
  • http://goo.gl/iDgkms
  • http://goo.gl/mpEuNo
  • http://goo.gl/R1GEZF
  • http://goo.gl/6CmpIK

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...