Abadi economic adviser: the government is able to borrow from the central bank law clause tab

Author: AR, ASJ, HH
Editor: AR, HH

2016/01/09 16:49

Long-Presse / Baghdad
He said Minister for Economic Affairs Adviser to the appearance of Mohammed Saleh, said on Saturday that the government can borrow part of the money the central bank to help in the financial crisis, with the condition that borrowing is a tabular law.

He said the appearance of Mohammed Saleh in an interview with the (long-Presse), said that "Article 26 in the central bank law stipulates prevent the central bank from lending to the government a harsh material terms of developing in response to the former regime's policies, but in light of what, in Iraq today and the need possible financial liquidity adjusted to allow the lending of money is part of the government treasury. "

Saleh added that "there are a lot of countries worked on this thing and there are about 50 similar material to the material (26) in the central bank law to the state to help in the financial tragic situations," adding that "lending is not at any time, but when the state is in dire need to financial liquidity. "

Economic adviser said that "lending must be not from the current year's budget, but from a previous year's budget and possible borrowing is 10% of the fiscal deficit in the general budget of the country, or 15%, according to the agreement with the government or be a lending rate of 10% of the total Government spending over a year and must be paid during the year can also be foreign currency lending if the Iraqi government external obligations. "

Saleh stressed that "this step does not prevent the independence of the central bank because it will be in a limited way and the content of the law and this is possible to make the central bank relative independence of the law," pointing out that "the Central Bank reserves come from the government, it is not unreasonable when you need government and the central bank abandoned, especially and that Iraq is going through difficult circumstances. "

It is said that a number of legal and House of Representatives demanded that the Iraqi Central Bank Amendment Act in order to assist the Iraqi state in its current financial crisis Adin, he can amend the law because of the paragraphs not classified in the Iraqi constitution.

The Central Bank of Iraq revealed, on Saturday (16 May 2015), the bank reserve "has not and will not affect", in any form, indicating that the reserves this month, higher than its predecessor, while pointing out that Iraq if they remained dependent on oil resources basis will remain as a source of "adversely affected and positively" with the rise and fall of oil prices.

It is noteworthy that the central bank confirmed, during the month of January 2015, that the reserves will exceed the $ 80 billion during the first half of the same year, but will not reach $ 100 billion due to weak retail Iraqi oil revenues and through which access to the dollar to strengthen reserves.