Iraq Is Broke

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Loveday Morris, Washington Post: Iraq is broke. Add that to its list of worries.

BAGHDAD — Some Iraqi officials refer to it as “the gap,” and it is becoming as pressing a concern as the fight against the Islamic State.

Each month, Iraq’s government pays out nearly $4 billion in salaries and pensions to the military and a bloated array of public-sector workers. But with more than 90 percent of government revenue coming from oil, it is bringing in only about half that as crude prices plunge.

The United States is stepping in to try to make sure the country can continue military spending while it seeks international loans and embarks on an austerity plan. Still, some Iraqi officials and analysts say the government might struggle later this year to pay the 7 million people on the public payroll, which could trigger mass unrest.

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WNU Editor: Even though Iraq is in a state of war, they are still many who are willing to assist Baghdad by lending them money .... Standard Chartered in Talks on $2 Billion Iraq Bond Sale (Bloomberg). Will this solve Iraq's structural financial problems .... no .... but the alternative is far worse.