BAGHDAD: Iraq’s foreign and domestic debts have surpassed US$100 billion, the parliament’s finance committee has revealed, ruling out changes to the budget.
Jabbar al-Abbadi, a member of the committee, said in press statements on Saturday that the government, however, remains capable of secure employees salaries, pensions and to maintain the social security benefits based on current petroleum prices.
In December, the Iraqi parliament passed an $85 billion budget bill for 2017, based on a projected US$42 price for an oil barrel. Later in the same month, Iraq, after longtime reluctance, agreed to reduce its daily oil production by 210.000 barrels a day to 4.35 million barrels starting January in line with an historic OPEC members agreement reached in a Vienna meeting designed to prop up petroleum prices and curb overproduction.
“Iraq has managed to overcome the world economic crisis that resulted from falling world oil rates,” al-Abbadi said. “International experts predict oil prices to continue rising to over US$60 per barrel over the next two years, which is a positive sign for Iraq and achieves a relative detente in the financial hardship.”
Abadi, however, added that overcoming the current budget deficit requires an Iraqi oil barrel price of US$60, meaning a Brent crude rate of US$65 at minimum, as he put it.
In January, Iraqi oil minister Jabbar al-Luaibi said his country was not satisfied with oil prices, putting the satisfactory rate at US$65 per barrel.
