An economist’s analysis suggests that the declining oil prices could negatively affect Iraq’s financial gains from selling crude oil on international markets.
“The drop in oil prices definitely influences the increase in the budget deficit, as well as it affects the availability of cash liquidity for the Ministry of Finance,” Salah Nouri said.
“The Ministry of Finance priorities their disbursement, through internal borrowing from government banks and issuing debt bonds, although this also affects the financial liquidity of banks,” he said. “Due to the sensitivity of the situation of employees’ salaries,” he said.
“Reducing expenditure on investment projects, which influences the construction of infrastructure and the degree of employment of workers in the private sector,,” he stated.
