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Al-Hashimi warns Iraq may witness financial crises

BAGHDAD, Nov 20 (KUNA) -- Iraqi Vice-President Tareq Al-Hashimi warned on Sunday his country might witness a major financial crisis if oil prices fall in 2012 to an expected USD 85 per barrel.
The annual budget for Iraq depends entirely on oil sales and imports, Al-Hashimi said during his participation in the 5th political forum of the Renewal Movement, adding that next year's budget has been estimated at USD 112 billion.
He noted that the budget was based on high oil prices at USD 85 per barrel, warning that a fall in oil prices or deterioration of its demand in global markets will put his country in a huge financial trouble.
Also, Al-Hashimi thought that the solutions that have been proposed by the Iraqi government such as loaning from World Bank or from internal and external authorities, or from transferring what is left from the 2011 annual budget to the 2012 are very temporary and short-term solutions.
He called for forming a financial strategy that is derived from reconstructing the Iraqi economy, supporting agriculture, industry, private sector, rationalization of spending, and approving of a pay scale that is based on scientific foundations.
Moreover, Al-Hashimi noted that Iraq is in need for an urgent plan to avoid what might happen due to financial crisis in the next few years. (end) ahh.ma KUNA 201358 Nov 11NNNN