Iraq will experience critical economic situation in next two months: Specialists

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A number of financial specialists and economic experts have warned about weakness in the country.

They advised the Iraqi government to take some major steps in order to meet current financial crisis in the country. They indicated that continuous decline in the global oil prices and internal security situation in the country affected badly to the Iraqi financial institutions and put Iraqi economy in more troubles. The Iraqi government is currently experiencing most severe situation and government would not be able to pay salaries to governmental employees after the month of March 2016.

It is also said that significant decrease in the oil prices in the international markets caused financial bankruptcy and lack of sufficient cash fluidity in the country. It also generated more problems in the payments of salaries to government employees and retirees due to unavailability of specific amount of cash. Most of the economic experts have predicted that global oil price would be 10 U.S dollars per barrel due to a continuous downfall in the global oil prices. They pointed out that most of the international banks and Iraqi friendly countries would ask for forgiveness for granting loans to the Iraqi government due to critical economic and financial crisis in the country. The Iraqi government would have to give assurances the ability to repay debt in the future to international banks and friendly countries in order to get more loans. A member of the Iraqi Economic and Investment commission and deputy Al Mamori said that Iraqi government would experience more critical economic and financial crisis in the next two months. It is expected that Iraqi government would experience a lack in the payment of salaries to government staff due to a massive and continuous decline in the global oil prices.

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