Ministry of Finance: International Monetary developed a program to assist Iraq in the financial management to get soft loans

11/26/2015 (00:01 pm)

BAGHDAD / Ibrahim Ibrahim

Confirmed experts economy, on Wednesday, the IMF does not give money in the form of grants without setting conditions to ensure repayment of the loan with interest in addition to the intervention policy of the country's economic which will reflect negatively on the rise in transactions in the local market, while the Ministry of Finance revealed that Iraq will take over one billion and 200 million dollars a loan from the International Monetary Fund without preconditions.

The economist said Bassem Jamil Antoine in an interview for the "long", said that "Iraq is going through a financial and misses a crisis of liquidity and bridging the budget deficit in 2016 of $ 23 trillion dinars."

He added, "The financial crisis has prompted the government to develop a plan to reduce the budget deficit by borrowing from several bodies including the International Monetary Fund and the amount of one billion two hundred million dollars to cover some of the necessary expenses of the country.

"He explained that" the amount of value that does not require setting impossible conditions imposed on the Iraqi government as well as the stated agreement was containing proposals can be implemented in the future.

"He said "Providing the money to meet the annual deficit process requires the government put a solid management can negotiate during the agreement on various foreign loans and the method of distribution in accordance with the actual moment of need."

He revealed Finance Minister Hoshyar Zebari, on Wednesday, that Iraq will take over one billion and $ 200 million loan from the International Monetary Fund , and among the latter does not have the conditions for lending to Iraq.

Zebari said during a joint news conference with the governor of Karbala, Akil Turaihi and chairman of the province of Karbala Nassif rhetorical, in the governorate building and attended by the (long-Presse) that "the International Monetary Fund does not have any requirements on Iraq to give him loans financial but has a program to assist Iraq in the financial management and the economy, and this has helped us in that we get soft loans from some international organizations, "stressing that" Iraq will take over soon billion and $ 200 million a soft loan from the International Monetary Fund.

"The condition of the International Monetary Fund to raise support for electricity and the ration card to lend to the Iraqi government and enable them to bridge the expected deficit in the next 2016 budget, while expressed "serious reservations" on the size of salaries paid by the government for the staff, invited her to re-examine them.

The International Monetary Fund announced on Saturday (the 14th of November 2015 current), the determination of the Council of Ministers amend the next 2016 budget, in line with the macroeconomic framework of the program watched by the Fund.

In turn, the economic Abbas Ibrahim Bahadli expert in an interview for the "long", that "the IMF is considered profit organization in content and public agitated policies World according to the control of the economies of the countries through continued lending system.

"He added that" the country's economy is going through the throes of Asir requires the development of alternative plans to the process of falling oil prices by finding local alternatives to increase imports financial state without resorting to marginal loans do not help in overcoming the financial crisis, but put restrictions conditional may take many years to come. "

He said Bahadli" The IMF does not give money in donations without setting conditions to ensure repayment of the loan with interest in addition to the interference of internal and external policy of the State. "

He said the" step to sign the IMF loan in the immediate phase experienced by the Iraqi economy will lead to reduced government support towards some key services such as fuel and the ration card and the demobilization of staff and the Ministry of Industry companies causing raise domestic prices by about rising ".

He warned Bahadli against" the continuation of the central bank sold the dollar auction daily currency which sapped currency funds derived from the sale of oil, prompting the government to borrow from the IMF, which in turn is opposed to the sale process and described as random. "He added that" continuously sell the dollar at the central bank auction threatens to decline foreign exchange reserves, which is owned by the state to dangerous levels as indicated by the IMF in his recent statement ".

Previously, the International Monetary Fund, and to give Iraq worth one billion and 250 million dollars in emergency aid, but Iraqi officials have reservations about the amount that said the government is seeking to borrow from the International Foundation which is based in Washington based.