Iraq gets a "financial umbrella" is estimated at $ 20 billion and calls for the strengthening of the economy

2016-05-27 15:50


Detect financial advisor to Prime Minister Mohammad Saleh appearance Friday that "financial umbrella" international obtained Iraq estimated at about 20 billion dollars, with investment and economy Committee called for in the House of representatives to focus on the actual need for loans and how to spend them to boost the national economy, an economist with the difference between the World Bank and the International Monetary Fund loan to public opinion.

Saleh said in an interview (range), with the IMF standby credit arrangement is called, will begin work on the first of July, "adding that Iraq" be loaned under which five billion and $ 400 million payment grace period of three years. "

He added, "the World Bank will grant a loan of three billion dollars Iraq soft long repayment duration", stating that "each from the World Bank and International Monetary Fund different mechanisms for lending".

Financial adviser said Abadi, that "the total amount of borrowing from the IMF and the World Bank's eight billion and $ 400 million, and deferred payments of debts by the Paris Club countries and war reparations Kuwait, brings Iraq room to meet current financial pressure".

He continued, "that Iraq be loaned nearly five billion dollars, of the seven major industrialized countries (Paris Club), such as Italy and Germany and Japan International cooperation agency JICA," pointing out that "total loans from both the International Monetary Fund or the World Bank or major industrial States, deferring payments to Kuwait and those of the Paris Club, ranging from 19 to 20 billion dollars."

And, that "overall financial parachute for borrowing will be between 19 to 20 billion dollars, which would be a loan the IMF and the World Bank as well as receivables deferred or postponed as funding constitute the borrowing".

Most importantly: parliamentary economic loans how to spend to promote national economy

Committee Chairman said parliamentary economy and investment Jawad Al-bulani told (range), that "what is important in the subject's actual need for loans and how spending in areas that serve the national economy and promote development paths, and no difference between those who will loan her," returned to "partnership between Iraq and the international financial institutions are helpful, to be able to keep up with the global economy strategies."

Boolean, stressed that "Iraq will borrow him a total $ 20 billion over the next five years", noting that "the amount will be in batches.

Economic: it must inform the Government and public opinion on the difference between the World Bank and the International Monetary Fund loan

In return, the Economist said Ahmed barihy, a (range), that "it is necessary to prepare a clear and precise report shows the difference between the loan the International Monetary Fund and the World Bank, for presentation to the Cabinet and published for public opinion", stating that "the IMF loan is different than that of the World Bank, where each has its specificity and its orientation and the way of abuse with lending."

Barihy added that "the IMF lends Governments to pay off a deficit in the balance of payments on certain terms, while the World Bank loans for developmental assignments or to develop specific sectors", noting that "the World Bank lends large sums, so beware, because the Cabinet members don't know that unlike the specialists in the Ministry of finance and the Central Bank".

The IMF knows that, a specialized agency of the Bretton Woods system of the United Nations, including the severing of an international treaty in 1945 to work on enhancing the safety of the world economy, which is based in Washington, and managed by its members, which includes almost all countries of the world with their number of 188 countries.

He was the head of the Government's financial adviser, confirmed in (24 may 2016), the priority of the IMF loan will be disbursed to plug the displaced and social welfare allocations and ration card, and projects limit unemployment, categorically denying any intention to cut allowances, while the parliamentary Finance Committee, returned the loan "good step" to help Iraq out of financial crisis and rationalize expenditures, calling the Government to submit a budget for the year 2017 Fund criteria next.

Financial Minister Hoshyar Zebari declared, (19 may also present), to reach agreement with the International Monetary Fund for a loan worth 5.4 billion dollars, while among the loan would secure additional financial assistance of up to $ 15 billion over the next three years, the Governor of the Central Bank, on the relationship to the annual interest on the loan of up to 1.5 percent.

Iraq had declared in (13 January 2016), for approval by the International Monetary Fund to finance the budget deficit through clouds of hard currency reserves, explaining that it means lower those reserves of 59 billion dollars by the end of October 2015, to 43 billion this year.