Iraq will receive a "financial umbrella" estimated at $ 20 billion and calls for exploited to boost the economy

27/05/2016 15:50
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Long-Presse / Baghdad

Financial advisor to the Prime Minister, revealed the appearance of Mohammed Saleh, said Friday that the amount of "international financial umbrella" will get Iraq estimated at approximately 20 billion dollars, and in the economic and investment commission in the House of Representatives called for a focus on the extent of the actual need of loans and how to spend to strengthen the national economy , an economist statement difference between Karza Monetary Fund and the World Bank public opinion demanded.

Saleh said in an interview with the (long-Presse), said that "what has been with the International Monetary Fund called the Convention on the Stand-By Arrangements, and will begin working out at the first of next July," adding that "Iraq Siqtrd under five billion and $ 400 million duration allow pay-standing Three years".

Saleh added, "The World Bank will give Iraq a loan of three billion dollars on favorable terms and for a long time to pay," noting that "both the World Bank and the IMF different mechanisms for lending."

He explained the financial advisor to Ebadi, "The total amount of borrowing from the International Monetary Fund and the World Bank is eight billion and $ 400 million," stressing that "the postponement of payments to the Iraqi debt by the Paris Club countries and compensation for the Kuwait war, would bring to Iraq leeway to cope with the current financial pressure."

Saleh continued, that "Iraq Siqtrd nearly five billion dollars, an additional seven industrialized nations (Paris Club), such as Italy, Germany and JICA Japan International Cooperation," pointing out that "the total loans either from the IMF or the World Bank or major industrialized nations, with the postponement of payment of dues of Kuwait and those of the Paris Club, ranging from 19 to 20 billion dollars. "

And Saleh, that "financial parachute total borrowing will be between 19 to 20 billion dollars, and in the shade will be the International Monetary Fund and the World Bank loan as well as receivables that were postponed or will postpone constitute funding Like the borrowing."

Parliamentary economic: most importantly, how to spend the loans to promote the national economy

For his part, Chairman of the Committee on Economy and Investment parliamentary Jawad al-Bolani said in an interview to the (long-Presse), said that "it is important on the subject of the loans is the extent of the actual need for them and how their spending in the areas of service of the development paths and enhance the national economy, not the difference between those who Stkarzha", returned to "partnership between Iraq and the international financial institutions and useful, to be able to keep up with the strategies of the world economy."

Bolani stressed that "Iraq Siqtrdah total of $ 20 billion over the next five years," noting that "the amount would be in batches."

Economist: to be informed of the government and the public on the difference between Karza Monetary Fund and the World Bank

On the other hand, said the economist Ahmed Rehn, said in an interview to the (long-Presse), said that "it is necessary to prepare a clear and concise report that shows the difference between Karza the International Monetary Fund and World Bank, for presentation to the Council of Ministers and published public opinion," noting that "the IMF loan is different higher than that of the World Bank, where each has its specificity and orientations and way of dealing with the lending. "

He added Rehn, that "the IMF lends to governments to repay the deficit in the balance of payments under certain conditions, while be World Bank loans developmental tasks or for the development of specific sectors," adding that "the World Bank does not lend large sums of money, so it should pay attention to it, because the members of the government do not know that unlike the specialists at the Ministry of Finance and the Central Bank. "

And knows the International Monetary Fund on it, a specialized agency of the Bretton Woods system of the United Nations, was established under an international treaty in 1945 to work on enhancing the safety of the global economy, and is based in Washington DC, and managed by its members who include all the countries of the world about their number of 188 countries .

He was the financial advisor to the prime minister, he said in (24 of May 2016), that the priority regardless IMF loan will cover the deficit assignments displaced people and social welfare and the ration card, and set up projects limit unemployment, denying almost categorically any intention to cut marital allowances, while promised parliamentary Finance Committee, that the loan is "a good step" to help Iraq out of the financial crisis and the rationalization of expenditures, calling on the government to bring next year's budget in 2017 to the Fund in accordance with the standards.

The Finance Minister Hoshyar Zebari announced, in (the 19th of May this too), to reach an agreement with the World Bank Fund for a loan worth $ 5.4 billion, while the loan will allow securing additional financial assistance to reach about $ 15 billion during the past the next three, Governor of the Central Bank of Iraq, on the Keywords confirmed that the annual interest of the loan up to 1.5 percent.

Iraq had announced (January 13, 2016), for the approval of the International Monetary Fund to finance the budget deficit through clouds of hard currency reserves, indicating that this means reducing those reserves from $ 59 billion the end of October 2015 the past, to 43 billion during the year Present.