Invitation to establish a bank to finance infrastructure in the country
27-03-2016 07:26 PM Hits: 438

Undersecretary of the Iraqi Ministry of former finance Kamal Al- Basri, the strategic choice of development in Iraq «lies in the development of « Infrastructure Bank », effective way to benefit from the oil revenues and other sources of funding for the construction of infrastructure in areas of Iraq». He said that this step «serve the interests of current and future generations, and help protect the Iraqi economy from fluctuations in oil prices».

Basri , an economist and saw the activist said in an in
terview to «life», that the financial revenue from the sale of oil «represent often not easy to win, because the value of the work carried out to produce a barrel of oil and one marketing is much less than the realizable value of the sold». He said: «When this money be Adapted government , which does not have the financial dealings transparent as is the case in Iraq, officials find themselves in front of a broad space for the disposal of public money in the form is not commensurate with the real value of money. It takes government spending usually gain political dimensions and use of a wage increase for the level of productivity and taking support expenses such as prices of oil derivatives, as well as spending on expanding the size of the security forces and the army ».

He pointed out that «poor management of oil wealth form falter in the economic development process that led to the non - availability of financial resources , the extent sufficient to finance economic projects between 2006 and 2014», recalling that Iraq «received more than $ 500 billion from oil exports, and used revenues to fund the annual federal budget has allocated 30 percent of the expenses for investment projects.
However diminutive figure did not spend them only 60 percent. » He explained that this ratio «low does not meet the goals of reconstruction, but prolong the suffering of the citizen.» He disclosed that the «85 percent of the population have access to safe drinking water, while 32.2 percent of them only Ihzawn sewage systems services, and citizens will benefit from the public network for electricity only 11 hours a day on average, while the deficit in the schools Faisal to 8846»

Visual and announced that the drop in oil prices «forced the government to freeze investment projects in the federal budget for 2015 and 2016 to provide the necessary to cover the bloated operational spending cash», referring to the government 's intention « to borrow by issuing bonds worth $ 5 billion high interest rate of up to about 10 percent» . From here, he said that many governments in the world «establish private banks to finance development projects, the government defines its strategy and appoint a board of directors, with the participation of the private sector , including shares of between one and 49 percent of the total». He said: «These banks have made ​​outstanding achievements, and it is time for Iraq to benefit from these experiences».

And funding of the bank, the visual pointed to «various options» including «receive allocations from the federal budget and the use of savings and deposits of citizens, and borrowing from domestic and foreign financial institutions and use the income and property of the Bank». He stressed that «the government guarantees granted the proposed Development Bank the opportunity to obtain loans from international financial institutions at low cost».

, adding that « the federal budget for the 2006 law approved the establishment of three banks for the development of an initial capital of $ 500 million be increased to pay the Ministry of Finance over three years, and represents the contribution of the regions and provinces in the capital. Also be funded in the future by way of bonds and loans issued by domestic and international markets as well as borrowing from the regional and provincial coffers. »