IMF requires the imposition of strict controls on the doors of the loan disbursement

May 23, 2016 17:57

Author: alzawraapaper

BAGHDAD / nina:

the IMF imposed in the agreement concluded by Iraq during the past two days, to impose strict controls on the doors of disbursement of the loan, full salary and the placement and allocations for senior state employees, and job grading supreme, and private, to income tax. While not include conditions permit stamped on the ration cards, nor salaries of social protection network, and not the government provided subsidies for the displaced.

According to the Convention , which provides for the granting Iraq a loan preliminary exceed $ 5 billion, which included a public details of this deal is not the first, was preceded two agreements: one in 2005, and the settlement of Iraq 's obligations with creditors in the Paris Club, and the other in 2008, to address the repercussions of the sharp decline in oil prices at the time. And the value of the loan is 5.4 billion {} billion dollars. The interest rate on this loan does not exceed 1.5% per annum.

It is assumed that this loan helps to strengthen the creditworthiness of Iraq, and raise the credit rating, the building 'financial umbrella pave the way for the seven major industrialized nations {G7} to provide credit facilities for Iraq amounts could reach more of $ 15 billion. Among these facilities to help Iraq to ease the burden of repayment obligations with the Paris Club, as well as those relating to the payment of international financial obligations. Add to receiving additional financial support from the World Bank, and other countries.

And that this loan will help reduce the 'extra' deficit in the state budget, the impact of the drop in oil prices, and to follow the procedures help reduce the deficit 'total' {ie total deficit} in the state budget.

came within the requirements, the Iraqi government to take necessary measures to reduce expenditure in the state budget for fiscal year 2016, and take measures to settle the dues of oil companies, and do not let Petrakmh, full salary and allowances subordinate to the senior state employees, and job grading Supreme and private, to income tax. These range from tax {by} different income segments of between 7.5% to 15% of the total salary and allowances. As for the lower grades, they impose income tax on only the nominal salary, without provisions, and rehabilitation or restructuring {} self - funded public companies, and work hard to raise the efficiency and performance of the financial regulatory agencies in the country, at all levels. And impose strict controls on the doors of disposition of this loan.

And imposed agreement controls for the collection of public service wages, to take into account the living conditions of low - income people, and will not raise fuel prices {types}, because oil prices are currently low, and because existing prices are rewarding for the government , and there is no requirement laid off workers in the government sector. There are no conditions permit stamped on the ration cards, nor salaries of social protection network, and not the government provided subsidies for the displaced.

According to the agreement, the social costs are difficult to this Agreement, are those associated with the repercussions of negative to cut public spending {in the absence of almost entirely of institutions capable of allocating resources economic available the best possible ways and means, and the lack of the ability to pursue a management efficient public money} .. and also the costs associated with the taxation of the salaries of all employees.

As for how to dispose of the amount of the loan, check spent on the purposes for which has been allocated for it originally, and achieve goals President envisaged it, the burden of implementation and follow - up in question, it will be the responsibility of the international parties involved and supportive of this agreement {must be a fundamental jolt}, and not the responsibility of the Iraqi government alone.

And economic expert , he said sanctuary secretary said the loan obtained by Iraq from the international Monetary Fund recently will contribute in solving part of the financial crisis, but not all.

He said the secretary that " the loan obtained by Iraq recently will not have an impact on economic development, but will fill the part of the fiscal deficit of the Iraq 's budget for the current year due to lower oil prices and the expenses of the war against Daash gangs amount terror and relief to the displaced , "pointing out that" the budget that in 2016 was built on a deficit of more than $ 20 billion and the adoption price of $ 45 per barrel of oil. "

He added that" previous non - viable investment plans, corruption and the fight against terrorism has contributed to the erosion of the country 's huge wealth and led to borrow from the Fund IMF to fulfill its obligations to the oil companies and the salaries of staff and the implementation of some investment projects , "adding that" the international Monetary Fund agree to lend Iraq $ 13 billion that came after the confirmation of the ability of Iraqi institutions to fulfill their obligations . "He explained economist that" countries that need a loan from the international Monetary Fund are often subject to the conditions it requires to carry out economic plans contribute - depending on the Fund 's vision Ata- its economy recover and grow properly , "adding that" Iraq does not need any loan from any party without the prior unwise plans squandered the wealth of Iraq in previous years and enlivened corruption and slipped in useless projects and other fake alongside open spending towards armament and combat terrorist Daash gangs. "

He continued secretary, said that" the international Monetary Fund found that Iraq, after the elimination of terrorism recover in conjunction with the data optimism rising prices oil, however , it remains subject to the elimination of corruption and channeling funds towards investment and service projects. "

He called on the government to" prepare for the preparation of next years budget after eliminating Daash terrorist gangs and the allocation of part of the investment projects that stimulate the production and enhanced to generate new capabilities to take advantage of economic activities owned by Iraq to ensure the sustainability of projects and reproduction and operation of the largest possible number of manpower at the same time which should be the reconstruction of liberated cities and enable the local economy to grow and contribute to the national economy with the need to emphasize the provision of security and stability as well as activating the judiciary to limit the operations of corruption and waste of public money . " .ouhsal Iraq last Tuesday, a loan from the international Monetary Fund worth $ 13 billion with interest estimated at 1.5 percent.
(source agency nina)