IMF loan depends on subjecting the salaries of "senior staff" for income tax and cut
IMF loan depends on subjecting the salaries of "senior staff" for income tax and cut budget expenditures
19/5/2016 | (Voice of Iraq) - Baghdad revealed financial advisor to the Prime Minister and the appearance of Mohammed Saleh, said Thursday that the approval of the International Monetary Fund for lending to Iraq required a reduction of the general budget of about 13 trillion dinars expenses and the placement of "senior staff" allocations to settle the dues of oil companies income tax, and noted that the conditions also included the exception of the armed forces and junior staff of the income tax provisions, as he emphasized that the loan will open the door for loans from industrialized nations worth more than $ 15 billion. the financial advisor to the Prime Minister, the appearance of Mohammed Saleh, said that " the agreement with the IMF around Iraq for a direct loan from the Fund valued at $ 5.5 billion, went toward cost - cutting in the public budget for the current year by about 13 trillion dinars, without prejudice to the ration cards and a network of social welfare and affairs of the displaced. " Saleh added that" the Fund to impose conditions on the Iraqi side in exchange for the loan, including the control of the integrity Commission and the Office of financial supervision and devices anti - money laundering in financial transactions, in addition to the settlement of dues of oil companies and avoid the accumulation of dues , "he said , adding that" the international Monetary conditions also included a full subdue income and allowances of senior staff to income tax, exemption the armed forces and junior staff of the income tax provisions. " Saleh revealed that" the benefit of this loan does not exceed 1.5% per annum and for a period to allow more than two years , exempting from the payment, to be repaid over five years from the date collected and according to the semi - complex mechanism, "returned " the loan will open the door for industrial nations (G7) to lend Iraq amounts of up to $ 15 billion, and favorable terms." the Finance Minister Hoshyar Zebari announced on Thursday, to reach an agreement with the World Bank Fund for a loan worth $ 5.4 billion, and as pointed out the loan will allow the securing of additional financial assistance to reach about $ 15 billion over the next three years, Governor of the Central Bank of Iraq, on the Keywords confirmed that the annual interest rate of the loan is up to 1.5%.