Parliamentary Finance: the executive organ of the state needs to restructure


Baghdad / Ibrahim Ibrahim

Parliamentary Finance Committee confirmed, on Monday, that the government machinery needs to be restructured in accordance with the financial resources of the country without resorting to external borrowing. The Ministry of Finance announced an Iraq financial and economic talks with the International Monetary Fund in Amman, indicated that they have held talk in Iraq, the entry with the Fund in the credit policy arrangement (SBA).

She said a member of the Finance Committee Magda Tamimi, in an interview for the "long", that "the executive branch of the state needs a comprehensive restructuring so that it corresponds with the financial resources of the country without resorting to borrowing money and dispensing random ways."
"The successive governments have wasted billions of dollars without achieving any results on the ground, touched citizen because of the corruption that has become sadly prevalent in the culture of the community."
Tamimi explained that "the budget deficit and the government's lack of funds should not be offset by external borrowing, but must develop plans to restore citizen confidence in financial institutions to raise funds banks where the government can borrow them according to specific terms and benefits."
For its part, the Ministry of Finance said in a statement, received the "long" version of it, that "Iraq began on 27 March 28 in Amman, financial and economic talks with IMF experts," noting that "the Iraqi delegation representing the Finance and the Governor of the Central Bank Minister the oil ministers, planning, and electricity, while the part of the other side, the Fund's senior experts, representatives from the World Bank and representatives of the United States and JICA Japanese international development. "
The ministry added that "the talks focused on a review of the Fund's staff monitor economic and financial policy program for Iraq and the spending review policies and to maximize revenue and reduce the overhead of unnecessary procedures and fiscal deficit."
The ministry pointed out that "Iraq discuss Iraq's entry with the Fund in the credit policy arrangement (SBA), which qualifies Iraq to get financial loans from the Fund and financial institutions to support the Iraqi economy, as a result of declining costs and requirements of confrontation prices with terrorism Daash and the need for Iraq to economic reforms to achieve balance between expenditure and income and the fulfillment of the obligations of vital social state. "
In turn, the economist said Mohammed Abdul Latif Al-Ani, in an interview for the "long", "The government is determined to put restrictions on the Iraqi economy by insisting on external borrowing to tackle the financial deepening its crisis."
He added that "there are many ways the government can take without resorting to external borrowing, including reducing non-essential expenditures and borrowing from the government and private banks as well as the activation of various internal taxes."
Ani said that "the government has to borrow money from international institutions could not meet the fiscal deficit without taking to combat financial and administrative corruption in the various aspects of the state real action."
He said the "foreign loan funds do not clog only 3% of the budget deficit, which gradually began to rise as a result of lower oil prices in nearly two years."
He revealed the central bank governor on the Keywords, on March 23 2016 that Iraq would soon meet with the IMF to obtain a long-term loan, noting that Iraq has the right to give assistance and convenience when going through a crisis.
He was an economic adviser to the prime minister the appearance of Mohammed Saleh said, Tuesday (01/06/2016), said that "Iraq consults constantly with the International Monetary Fund to get a crane to support the financial sustainability through soft loans," she returned to "the agreement itself is useful because it is an umbrella Iraq gives the signal to the international financial community to lend Iraq. "
Saleh added, in an interview for the "long-Presse", that "the cost of those loans is low and few benefits by about a year, and for a long time repaid," noting that "Iraq has an agreement with the International Monetary Fund, spends his monitor the economic policy of the country."
He guessed adviser Abadi possibility of "turning the agreement with the Fund to a larger level, allows Iraq to obtain soft loans from the International Monetary Fund and the World Bank," stressing that the "loans if they were going to go for development projects, particularly energy and industries important to the lives of the Iraqi people."
Saleh said that "the International Monetary Fund under, among other conditions, the government expenses and adjusted some of the procedures relating to economic policy," adding that "the government restricted their expenses mainly as a result of the crisis in the now."
Iraq has been going through a major financial crisis as a result of lower oil prices, which Iraq depends mainly upon reaching these prices, sometimes, to the low levels reached less than $ 30 per barrel.