Tariq Harb: the possibility of amending the Central Bank Law and borrow from it to cover the deficit


(Independent) ... explained the legal expert Tareq Harb, that the government could prepare a draft law approved by the House of Representatives for the purpose of modifying the Central Bank Law and borrowing from it to meet the financial requirements as a deposit of salaries and other away from external borrowing.

The war, in a statement received (Independent) copy of it, "For the first four days of 2016 saw a frightening and terrifying statements from officials and are not responsible for the financial realities of Iraq and the financial crisis, some even arrived to say that the government will not be able to pay salaries of employees in the next month of April."

He added, "Since the Central Bank of Iraq has funds of up to $ 60 billion as the bank announced that the fifth day of January of this, and as the bank's money immunity and prevent the bank from lending to the government is the legal immunity and is not constitutional immunity so that Article 26 of the Bank Law No. 56 of 2004 to prevent the bank from lending to the government either Constitution where the rule of this money did not respond, and thus it is possible to amend article mentioned in the Central Bank Law by law issued by the parliament building on the draft of the government includes amending the provisions of Article 26 is includes the inadmissibility of government borrowing from the bank money that is no more than a quarter of the bank's money. "

war and explained that this means "passport to reach the amount that the government borrows to $ 15 billion, and this is a big amount that would satisfy the financial requirements of the salaries and others do not even much more than what is required and prevents the government from foreign and benefits loans."

And "It is true that this amendment and this loan is considered damage, but as before the damage most is the absence of funds for the disbursement of salaries serves to damage the lightest, a decrease in bank money or influence in the economic level, as a legal rule has been said that necessity knows no law and necessity here need to borrow from the bank and the prohibition here is the lack of borrowing and resulting from economic damage Both are evil and in evil selection says the owners of wisdom.

"He continued war" Therefore, the amendment of the Central Bank Law can be one of the solutions that protect the government from the grave and serious financial damage that is often repeated by the pessimists in the future of Iraq.

"The Finance Minister Hoshyar Zebari , revealed last Monday, that the government may not be able to pay employees' salaries during the month of April next year, due to lower oil prices.

Zebari said in an interview, "In the past year, we have succeeded in the distribution of salaries, but this year, according to estimates available to me, we have exposed problematic in the month of April may not be able to distribute the employees' salaries for that month, this is a reality, and people should know.

"He explained that" The other option is how to raise the Iraqi dinar exchange rate, and although it choose the risk and could have repercussions, but we thought in not granting full salaries, and to keep some of our loans, and give a document that we will give money when the offer we have.

"Among Zebari said" The other option is to sell oil and receive money in advance, in addition to raising the price of water, electricity and fuel service option, but it is not easy, any government applied be subject to the reactions of citizens, economic and making painful, but it is said that any economic decision, if not painful, it is not a decision, and there are seven million people are paid salaries of Iraq's total population of 36 million, and distribute monthly salaries of an estimated four billion dollars.

"For his part, counting a member of the parliamentary finance committee Jabbar al-Abadi, Zebari's comments about not being able to pay salaries in next April" inaccurate.

"Ebadi said yesterday that the" statement Zebari not careful, it can not put a roof or a history of lack of Iraq's ability to payment of salaries, "noting that" the salaries paid by oil revenues that could go up or down or maintain this price, can also be obtained on the loans, all possibilities are open, "adding that" the development of a specific date for the inability to pay salaries is True, this statement is not accurate, "explaining that" there is no stock of existing in the Treasury paid through payroll, because what is obtained from imports pays directly for salaries, and there for a year or more secure, but payment is made ​​month by month. "