IMF imposes conditions on Iraq in return for granting financial loans


Friday , April 1, 2016

IMF has developed a package of financial and economic reforms, in a visit that would conclude the middle of this week, after talks nearly two weeks of talks with officials in Baghdad.

The suffering of Iraq, like other oil - producing countries, the decline in financial revenue as a result of falling crude oil prices by 68 per percent, and fighting al «Islamic state» in many cities, and that drained the treasury.

Said Abdul Hussein Al - Anbuge, Iraq 's prime minister counselor for economic affairs, said the conditions set by the international Monetary Fund to cope with the financial crisis in Iraq fall under the reforms that the government which seeks to that reduce economic damage.

He Anbuge there are not tough conditions imposed on Iraq by the international Monetary Fund in exchange for cash loans. What put the IMF is part of the reforms, but it may have an impact socially unacceptable in the long proximity, adding that he had to reduce the damage to be forced to accept certain conditions to face the biggest problem.

The heading of the International Monetary Fund to give Iraq a financial loan demand by June next, allowing Baghdad to $ 15 billion in international aid over the next three years, according to a statement of Christian Gooch head of the IMF mission in Iraq last Tuesday. The Iraqi official said that «some government institutions began to increase fees, such as the Ministry of Health , which raised medical services prices, the secretariat of Baghdad , which raised the municipal service prices.

Currently operates several government committees to determine the possibility of selling some state property such as land, machinery and real estate, residential complexes, which are steps aimed at the face of the financial crisis.

Agreed with Baghdad in November last year to place the financial and economic policy to control the international Monetary Fund for the years 2015-2016 after the aggravation of the financial crisis because of low oil prices in the global markets.

The international Monetary Fund says that the biggest challenge before the agreement on the granting of Baghdad loans worth $ 15 billion , is gradually will cut spending to match revenues, allowing the debt of the country be stabilized by 2020 , when 75 percent of GDP.

Iraqi finance officials believe that some of the conditions the international Monetary Fund can not be applied at the current stage, especially that can strongly affect the quality of life of citizens.