Central Bank: The 2012 budget was reduced to violate the conditions of the loan to Iraq of the International Monetary Fund

1.12.2012 | (Voice of Iraq) - Add comments - Baghdad - where the central bank attributed the reduction of budget for fiscal year 2012 to Iraq's violation of the terms of borrowing from the IMF. The bank adviser said the appearance of Mohammed Saleh told all of Iraq [where] that "after agreement of Iraq with the International Monetary Fund to borrow from it the amount of [3.7] billion dollars in February of 2010 to meet the fiscal deficit due to the economic crisis the world has witnessed in 2009, which was awarded part of $ [2.2] billion dollars, on condition the International Fund for Iraq that the disposal of these loans in the process of development and investment projects. " "But that was in the budget of 2012 and after discussion by the International Fund found an increase in operating expenses for the salaries and wages by 22%, while the level of development is relatively weak and this is contrary to the agreement between the parties objected to the International Fund and began to put pressure on Iraq and actually reduce the size of the financial budget for the year 2012 from its initial estimates [137] trillion dinars to the [117] trillion dinars in addition to reducing many of the increases and have already been re-structuring of the financial budget for the current year to become a more acceptable. " Saleh continued, "This action by the Iraq was a give and unfortunately a bad impression and will be included this impression in the reports of the International Monetary Fund that this country gives credit for it goes in the expansionary fiscal policy consumer is staged against a political investment is weak and on this basis, the Iraqi government, frankly, is keen that relations with organizations and international financial institutions natural and the relationship of understanding. " The Iraqi government spokesman Ali al-Dabbagh has declared that "the financial budget for the year 2012 have been reduced to avoid a large deficit, however, it is the largest and the largest in the fiscal budgets of Iraq throughout history." and distributed the financial budget for Iraq for the next year by [68 ] percent of the operational projects, with gold [32] to balance the investment. The House of Representatives had already begun to consider the budget and completed the first reading and then the second and waiting approval at future meetings. According to a statement made ​​by Minister of Planning Ali Shukri's [where] the "likely to be There is a supplemental budget for the federal budget for 2012 through the abundant oil revenues after the plug, which happened as a result of reduced at the request of the International Monetary Fund "and said that this budget as it stands do not meet our ambition.

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