Central Bank refuses directed the government to withdraw from its reserves and prepared "an encroachment on the law."

Author: HH, MJ
Editor: AZ, HH

2016/01/13 17:46

Long-Presse / Baghdad
Central Bank of Iraq's refusal, on Wednesday, the government went to draw from the financial reserves, and stressed that the law does not allow the government to draw from the hard currency reserves, while calling on the government to issue bonds and sell them to banks.

The general director of issuance and cabinets in the Iraqi Central Bank Ahsan Shomran in an interview to the (long-Presse), "The law does not allow the government to draw from the bank's reserves of hard currency to cover the deficit in its budget for the payments."

Shomran added that "the government is not in need to commit such offense", stressing that "this is unacceptable and is a violation by the government."

Shomran and called on the government to "go for the issuance of bonds to be purchased by banks then deducted when the central bank last fact does not have the liquidity."

The Reuters news agency revealed on Wednesday (January 13, 2016), that "the International Monetary Fund agreed to the Iraqi government programs funded by the federal budget from its reserves of hard currency deficit as a precondition for granting a loan," noting that it "will lead to a reduction of those reserves of 59 the end of October last billion dollars in 2015, to 43 billion during the current year 2016 ".

The Finance Minister, Hoshyar Zebari, revealed in (the 25th of November 2015), for borrowing Iraq billion and $ 200 million from the International Monetary Fund, stressing that the Fund "has no" conditions in this regard.

The Iraqi Council of Representatives, approved by majority, in (the 16th of December 2015), the draft budget law for fiscal year 2016 the current value in excess of 105 trillion dinars, and the inability of more than 24 trillion dinars.