Parliamentary Economy: $ 20 billion worth of grants, aid granted to Iraq

BAGHDAD / Noor Ali said the economic and investment commission in Parliament, on Tuesday, that the value of grants and aid obtained by Iraq so far amounted to $ 20 billion since 2004. As confirmed that the state lacks transparency and equitable distribution among the provinces, called economists to take advantage of state austerity adoption of the government on the real resources external borrowing instead. She said a member of the economic and investment commission parliamentary Najiba Najib, in an interview for the "long", that "the value of the grants and aid obtained by Iraq from 2004 to 2015 amounted to $ 20 billion from a number of countries donor, either loans obtained from some countries include certain benefits conditions be specific time duration, and the State repay these loans in accordance with the conditions set.
"She added that" the Japanese loan for Iraq amounted to $ 5 billion has been allocated for development projects, provided that oversees donor state These projects according to priorities set by the Ministry of Planning, Ksaanh hospitals and the Ministry of Health as well as the Baiji refinery, and other projects, as well as the Italian loan, which was a few benefits and in accordance with the conditions determined projects to be covered with the follow-up to spend money directly.
"noted Najib said the" IMF loans the World Bank estimated at $ 7 billion since 2007, some of them to support investment projects and others to cover past and future budget deficits.
"It showed that" Iraq lacks legislation of the Federal Revenue Authority Act and the government were not serious legitimizes over the previous years, and in accordance with Article 106 of the Constitution which stipulates the need to establish a body with transparency and justice in the distribution represented by loans and grants foreign state resources, and internal and include the collection of money from taxes and various fees in accordance with the principle of equality in the distribution, emphasizing the lack of transparency and fairness in the distribution of grants and loans between the different provinces.
"She said "grants, aid and loans as well as oil revenue should fall within the Federal Revenue Authority Act, but the state lacks the strategic planning in the money distribution establishes a special system process puts the urgent needs first."
rose by saying that "the loans obtained by Iraq in 2015 is the only to cover the fiscal deficit in the budget, because of a lack of revenue and increased expenses, so the government is in dire need of these loans at this time.
"said Finance Minister Hoshyar Zebari on Monday (28 / December / 2015), that Iraq has revived a plan to sell bonds two billion dollars in the budget of 2016, as pointed out that liberalization of gray will strengthen the Iraqi government's position and facilitates the confidence of international institutions there.
Zebari said in an interview with "Reuters" seen by "long" that "the budget in 2016 allows the government to sell bonds two billion dollars if lacked the resources to finance their spending project target, "adding that" the government hopes to conclude a better deal if you decide to resort to the bond market in 2016 with the achievement of the armed forces victories sustained on Daash and support of the World Bank and the International Monetary Fund of the Centre for government financial support. "Zebari added that" the international institutions' confidence in the country will facilitate the process of issuing sovereign bonds, "believing that" liberalization of gray will strengthen our position. "and was suspended the bond sale plan, the first of its kind offered by the Iraqi government in the international market, for about ten years, in October as investors demanded a yield of 11 percent. The Iraq sold in 2006 bonds worth $ 2.7 billion worth in 2028, and got Iraq on the classification -B of agency Fitch Ratings in August. Oil prices fell to less than half in the eighteen recent months, which reduced the government, which constitute the raw sales 95 percent from income. In turn, the economic expert, Mohammed Abdul Latif Al-Ani said in an interview for the "long", that "Iraq received large sums of money through foreign loans and from several countries to help in the construction of its facilities infrastructure and rehabilitation of the institutions affected after 2003." He added: "Unfortunately, the successive governments did not invest that money properly according to economic plans, but most of them went in corruption and large fraud without the presence of final accounts for it. "He said al-Ani said" donor countries give money according to reports reaching them by the government and determined by the Ministry of Planning and include the necessary and the ruling sectors and are mostly service and economic. "And that" Iraq is passing through a severe financial crisis due to low continuous oil prices as the reason for the lack of financial resources for it so he veered to borrow from several points of the most important IMF, which impose unfair conditions in return for giving the government a loan not only fills only 2% of the deficit budget for the year 2016 " . He said al-Ani said "austerity process characterized by the adoption of the government on the real resources without approval of the budget of the fake does not fit with the reality of the country's economic, so it is a foreign loan burden new on the future of generations to come with it does not represent a solution to the inability of the great budget." The Parliamentary Finance Committee confirmed, In April 30, 2015, they are passed to the government borrowing to fill the budget deficit and meet the essential needs in light of the state of war with "terrorism". And as pointed out that Iraq will receive a value of three billion and 400 million dollars from the International Monetary Fund and World Bank loans, revealed a tendency to privatize the stalled government projects are viewing to invest. The World Bank has revealed, in the April 29, 2015, about his quest to finance development projects in the areas restored Iraqi forces from militants (Daash), returned to economic growth as an important part of the political solution to the problems "have plagued the region."