IMF economic growth is expected to rise in Iraq , to 2.9% for 2016

Views 18 Date 05/04/2016 - 20:31

Economy News / Agencies ...

International Monetary Fund forecast, economic growth and rise in Iraq to 2.9% during the current year 2016, noting that the costs of the war led to high inflation and deteriorating financial centers, while economists have questioned the reports of international organizations because they do not match the economic reality of the country.

The IMF mission in Iraq confirmed on Tuesday (April 5 216), on a disparity of Iraqi oil exports estimated quantities in the past 2015 budget, with realized actually it, stating that it "will not affect" in Iraq for the upcoming international finance long been committed to the program agreed mechanisms to monitor.

The IMF said in a report, said the expected rise in the overall rate of growth in oil-exporting countries in the region to 2.9% in 2016 and this increases to up to 3.1% in 2017 compared to 1.9% in the past year as a result of the economic non-oil and Iraq activity Yemen, Iran and Libya. "

The report continued, "Despite the growth, the deficit will rise Iraq has the result of a lack of oil revenues that will reduce the government's ability to spend," noting that "the deficit will reach to about 4.75% and will reach 7.75% by the end of this year."

The report added that "the costs of the war in Iraq, Libya, Syria and Yemen are still high and caused violence in the scarcity of food and other necessities and caused damage to infrastructure and institutions and increased inflation and weakened the savings and deteriorated financial centers of these countries."

The drop in oil prices to low levels, which amounted to less than $ 40 a significant impact on the general budget that Iraq because Iraq's adoption of 95% in revenue on the export of crude oil.

For his part, economist said Abbas Ibrahim al-Bahadli, said the International Monetary Fund aid to many countries, including Iraq is free, due to the organization's policy that depends on the payment of money by way of loans to impose conditions on the local Alaguetad. "

He added that the "wrong economic policies of previous governments pushed the global financial institutions to offer economic aid and amounts represent only 1% of the federal budget that Avrgha thieves and Mokhtlsa influential parties deficit."

Bahadli said that "the International Monetary Fund forecast growth organization up during the current year, is an opinion that does not match with the reality of the economic and financial deterioration of the country's ongoing for nearly two years."

He said the "government is unable to far from the application of austerity plans as a result of a lack of financial liquidity, so we understand that the amount of foreign loans will go for the salaries of the armies of staff and sustain. Some of the daily economic activities."

Bahadli said that "the failure of the administration in most government institutions has led to wasting nearly $ 800 billion in just ten years."

"The lending conditions set by the IMF toward Iraq are considered non-binding, and considered public tips to improve wealth management and its focus in several productive sectors may have to create multiple and far from the oil financial resources."

The head of the IMF mission said Christian coconut, on the disparity in the amount of Iraqi oil exports between the estimated them in the federal budget actually realized, "The Fund noted that gave advice to the Iraqi government about it has taken him."

He added coconut that "the Iraqi budget for the year past 2015, the estimated oil exports three million and 300 thousand barrels per day, the export price of $ 56 a barrel, while realized in that year was three million barrels per day at an average of $ 48 a barrel," noting that "the Fund It advised the Iraqi authorities to reduce expenditures in light of the decline in imports compared to what is estimated in the budget, where the latter committed to it. "

And on the impact of this in the forthcoming from the Fund for Iraq funding, the chief of the IMF mission to Iraq, that "affect the funding."

Coconut and stressed that "the Fund agreed with the Iraqi authorities on financing the program and mechanisms of control in November 2015 the past, to help deal with the drop in oil prices," returned to "the successful implementation of the program paves the way for the possibility of Iraq get the funding it needs."

The appearance of Mohammed Saleh, Economic Adviser to the Prime Minister Haider al-Abadi, said in (the first of this April 2016), the seriousness of the international community to help Iraq and enable it to meet the "financial distress" current, while the International Monetary Fund plans to secure " global financial umbrella "for Iraq through its lending nearly $ 16 billion, counting that it supports the" authentication "of Baghdad and a guarantee for the international financial community to give more aid and soft loans.

The International Monetary Fund (IMF The International Monetary Fund), guessed at, (the thirtieth of March 2016), the possibility of approval to lend Iraq $ 15 billion over three years, through next June, while between that will provide five billion of them to believe the rest of other financial institutions and donors, he stressed that Iraq will receive five billion during the current year 2016, and the rest at the end of the agreement period.

The Finance Minister, Hoshyar Zebari, signed on 30 March 2016, Iraq received financial aid from donors and financial organizations of six billion and $ 400 million during the current year 2016.

The appearance of Mohammed Saleh, confirmed in an interview with him, in the (26th January 2016), that Iraq has agreed with the International Monetary Fund for long-term soft loans for the implementation of development projects, noting that the fund is among other conditions, government spending, and Justice some of the procedures relating to economic policies. "

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