Selasa, November 04, 2008

Iraq has allocated 15 billion dollars for reconstruction

Iraqi Government has allocated an amount of 15 billion dollars for the infrastructure reconstruction, especially oil installations, which takes a quarter of 2009 budget.

The Finance Minister Bayan Jaber said this amount is not related to the hundreds of billions that Iraq needs to redress the collapsed economy, calling on foreign investors to enter and contribute in this effort.

Jaber said at an Iraqi - U.S. symposium for investment in Baghdad that a study by the Government identified the needs of Iraq to 400 billion dollars to repair the destroyed infrastructure in war and establishing other facilities.

He added: "This is what compels us to resort to investment in several sectors including electricity, oil derivatives and refining, housing, infrastructure and banking sector."

The minister clarified that the thirty banks in Iraq are still struggling in the absence of capitals despite the government's support for continued lending, saying the current situation is "a window of opportunity to U.S. and the neighboring states banks for the partnership with our banks and enter the Iraqi market and give greater opportunities for loans."

Jaber added that the insurance sector is "primitive" in Iraq and it represents another opportunity for foreign companies.

The Iraqi economy began to recover slowly since 2003, also benefited from high oil prices this year.
However, Planning Minister Ali Baban has warned that Iraq must stop the dependence on oil revenues, which account more than 90 percent of its budget.

Baban warned that it was very dangerous to the country's economy depends on oil prices, making it vulnerable to any fluctuations.
The recent decline in the oil price has forced Iraq to reduce its budget for 2009 from 80 to 67 billion dollars.

( Iraq Directory )


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