Because of corruption. The Iraqi citizen asks: who is responsible for international loan disbursement mechanisms?

Last updated: June 4, 2016-1:35 pm

Baghdad/Iraq News Network-

in the shadow of the financial crisis that hit the country as a result of low oil prices, varied opinions of experts and specialists in the field of finance and economy on the feasibility of IMF loan granted to Iraq on the 17th of this month and discussed a number of experts and specialists in the field of finance and Economics subject international loan to attend financial advisor to Prime Minister Mohammad Saleh appearance, who confirmed that the loan is an opportunity to restore aConsideration in the economic policy of the country and spoke in favor of when hosted in progress

Institute for development policy loan details which will get Iraq out of the International Monetary Fund and a group of States and organizations to plug in the budget in the economic crisis facing the country, in the presence of elite money expert and Economics and business, saying: "Iraq is a founding member of the World Bank and the International Monetary Fund a year ago.1944 in 1977 began the relationship get stuck between Iraq and the International Monetary Fund after the previous regime decided not to provide the Fund with any data relating to the Iraqi economy and no longer the relationship to normal only after 2003.

"he explained that" Iraq's relations with the two organizations organized by the United Nations Security Council resolution 1483, 2003 which committed Iraq to deal positively with International Monetary Fund the World Bank aimed at Iraq's foreign debt settlementAcross the Paris Club agreement which is binding and is not an option for Iraq because Iraq's stability is part of regional and international economic stability.

"he noted that" the beginnings of a deal with the IMF and World Bank were in 2003 through the Madrid Conference of donor countries but the President seemed to settle Iraq's debt in the Paris Club after the IMF conducted an important job for Iraq by preparing tables define debt sustainability was touchingJust assume Iraq debt level State of Rwanda which he can't pay more than 10 percent of the debt that you push the box to call Paris Club countries to turn off 90 percent of Iraq's debts provided that enters Iraq in the framework of the Convention (post conflict countries) and this was 2004, which extended to 2028 and apply to all Iraq's debt was invalid.

"Then it was the demand of Iraq signed a number of credit ready conditions, including amending the financial situation in the country and increased fuel prices (gasoline) which was sold at very low prices encouraged traffickers to smuggle into neighboring countries." he added: "after signing the 2005 credit readiness was removed 30 percent of debt as a second meal to be a total debt cancelled 60 per cent having concluded successfully Convention 200820 per cent were cancelling of debt thus Iraq may get rid of 100 billion dollars of foreign debt and the remaining scheduling of debt until 2028 with stops all the benefits since 2005, this represents a significant benefit to the country. "and said that" the paths of agreement with IMF and World Bank were going well, especially in debt segment until the end of the second age credit preparedness Convention 2013 today entered Iraq in agreement

The third Convention "pointing out" that Iraq asked to prepare a detailed statement of economic potential and limitation of funds and assets of the State institutions, as well as details of contractors ' dues 7.6 trillion dinars as well as corporate governance performance of the Finance Ministry and the bank restructuring and Mesopotamia and create a company to insure deposits and guarantee social care and ration card and displaced and refugees ",

adding that" after the boldestE the evaluation process by the Fund and the World Bank found that Iraq has accomplished important steps in this area in about a year, Iraq has been successful, but due to financial constraints arising from declining oil prices, the World Bank and International Fund has estimated that the size of the hardship gap of up to $ 50 billion from 2016-2019 and Iraq to fend.

"and" dialogue for international loan is not easy but Iraq must take a series of theProcedures including review by the IMF on net real exchange Iraq through 2015, when it discovered that the salaries are so overgrown exaggeration as well as other paragraphs swelled the IMF and World Bank to demand from Iraq oil calculated at a price of $ 35 instead of 45 and exporting 3.6 million barrels a day to hit the gap or deficit to 11 billion dollars after deleting many paragraphs remaining 6Billions of dollars per year and Fund International Bank closed.

"and praised Kuwait's position in favor of supporting Iraq after the comment approach entitlements arising from Iraq, on the proposal of Canada was freezing Paris Club debt benefits amounting to 800 million dollars (religion) until 2019, pointing out that" Iraq is not in a danger zone regarding external debt and internal debt problem which is growing constantly and 25 trillion deFire is a Treasury remittances this year the Bank will issue Treasury remittances worth 13 trillion dinars and approved by the World Bank. "difficult debt management especially as we neared the breach security zone of up to 60 percent of GDP," he said to lucky Iraq but we need to help ourselves to invest international support G7 announced recently for a loan of $ 3.4 milYon euros, Iraq will receive around 20 billion dollars in three years.

"he noted that" the agreement with the IMF was transparent, is a global organization capable and there aren't any secrets or tricks as talking some about the loan "Noting that" Fund cares cause poverty in Iraq because of the high indicators on this side (23 per cent) as well as the presence of large numbers of displaced people, there are four people in 10 poor displaced as the share of theMember of GDP because oil prices dropped from 7 000 to 4 000 and the unemployment rate up to 23 per cent.

"he continued:" we have another problem with benefits oil companies that get 10 bucks for every barrel regardless of the sale price if b 100 or $ 20 and this is a problem and there are accumulated dues dating back to the year 2015 and this year one billion dollars a month to meet production costs and contractor benefitsWin $ 7.6 trillion dinars and this problem was resolved through issuing bonds.

"the terms of the IMF's governance performance of the Ministry of finance by presenting each chapter of expenditure and expenditure by the agreement to the Cabinet for approval and to the House of representatives, the second condition is the application of the income tax act to State officials and agreed to exempt employees from third to tenth grade and staff coverageN second rate up and be a full accounting of income and not just nominal salary, as UNFPA requested Iraq provide quarterly accounts prove no social protection system and rig the displaced and ration card and reimburse oil companies.

"and pointed to" a deal also requires strict law on financial management as well as the integrity as an actor in independent adoption processUnited Nations document finding against corruption, and the other amending the law of the Central Bank and confine all outstanding dues that delayed for more than 90 days and the Ministry of finance comply with new foundations and, more importantly, for the first time that Iraq's debt is subject to external and internal scrutiny. "revealing" internal public debt reached 37 trillion dinars this may get us into trouble printing currency and is danger because oil revenues guyInadequate and there are limits to borrowing and audit also includes all dues payments for satellite contractors or fake,

"he explained," that other conditions of the loan is that the Office of financial supervision audit all State employees ' salaries and the intersection of data to reveal the manipulators who earn more than a salary, and shall be subject to the scrutiny of all Iraq's foreign accounts by an external auditor in accordance with AldoLes "and said" Iraq should send a message to the International Monetary Fund on 15 June expressing his consent to the terms and mechanisms and financial policy framework presents the Fund's Board of Directors at the end of June, if the Governing Council endorsed the agreement in force and launches the first batch of International Monetary Fund loan of at least $ 600 million loan obtained in full through 13 over 36 months payment, before each batch is reviewedWhat has been achieved from the previous instalment and slack 3 years for each batch of loan payments and an interest rate of 1.5 per cent and that the loan goes to budget support.

"he denied in favor of the agreement with the International Monetary Fund any item or substance indicate a quota for Kurdistan, noting that the Fund deals with the Federal Government." the territorial Government initiative to subject foreign Checker oil exports in order to offer to the Federal Government and this lineThey are valid and important and help the international community to support Iraq and heal the problems we are experiencing.

"and talked about the problem of salaries that represent the greatest burden on the budget" as the number of employees to the 4.5 million employees in addition to retirees up to 7 million need about four billion dollars a month to provide salaries and insufficient oil sales to meet these payments if their corporate benefits, "took it" won't be hereOK new appointments except special assignments such as medical personnel and security forces and education if conditions improved, some things have changed.

"he described the agreement with the International Monetary Fund as" an umbrella for Iraq's access to loans from here and there, the British Government has allocated 300 million pounds sterling and Japanese allocated UPD another Islamic Development Bank in Jeddah showing Iraq grants of $ 5 billion to build PalmIraq needs schools to 7000 to replenish school. "he fit into that" there are two things gives hope and calls us to help ourselves out of the crisis, one that is about to end and this end became close maybe next September rewrote the latest, and second to improve oil prices.

"he said," that the private sector is also active in the period ahead, that's pushing the World Bank and the International Monetary Fund to predict aOf Iraq can manage its financial position to adequately value of 85 billion dollars, is it reasonable that the balance is not able to provide these sums. "Deputy Mehdi Al-Hafez said in turn to" a case of misunderstanding between different communities in the country on the international loan to Iraq, there are those who refuse to accept the "there, calling to clarify certain matters relating to this file is not significant loans or necessity is that called 'erE to resort to borrowing.

"that conditions affecting the country now are abnormal conditions and should be addressed in the context of economic policies and how the Iraqi economy to evolve through all of these considerations." he stressed that "the country is facing a difficult situation, too bad he can't get out of this bad situation without having a sound management and review of real political and financial management", noting that "Iraq put it rightTo is unable to decide anything because of a crisis of the political system is unable to decide the country's interest in accordance with objective criteria, this is a big problem.

"he noted that" Iraq's relationship with the World Bank and International Monetary Fund began in 2004 and we can't ignore the causes leading to the deterioration of the situation in the country because of local politics that got us into this situation, "he said, adding that" if we want to take the correct decisions should rateSound management according to corporate governance standards administered through democratic institutions in the country. "and on the expected impacts of international loan, banking expert Majed sparing other aspects linked to the economic reality of Iraq and the expected impacts of international loan, wondering:"

what Iraq's preparations to implement the loan obligations, particularly in the area of restructuring the banks which had seen no concrete action so far though An important study presented to the World Bank in this regard 2011 "," the World Bank is liable not to follow it. "and pointed to the planned budget deficit of 21 billion dollars, with oil sales to $ 9 billion, if the price of oil reached 40 dollars will increase the deficit to $ 36 billion deficit is real, as the Central Bank issued $ 5 billion worth of bonds and this is added to cover The budget deficit, where will fill this deficit. "moot" said that the amount of foreign debt reached $ 65.5 billion, including $ 47 billion debt of the Gulf, the total domestic and foreign loans, 96 billion dollars has arrived, including new debt constitute 77 per cent of GDP and could rise to 100 per cent,

"pointing out that the problem is in the Department of State. in turn, Mohammed Haj Hammoud, DeputyFormer Foreign Ministry, for "the importance of social issues highlighted by agreement with the International Monetary Fund and was also the first to focus on the issue of corruption and money he stole and strive to return through the mechanism of transmitting corrupt courts." "The importance of the private sector which witnessed a significant deterioration since 2004 until now that Iraqi industry became part of history, and international organizations should pay the private sector all agricultural and industrial, Ambergris. either Iraqi businessmen Union President willing consent blibel, Ray" to solve the economic crisis is getting foreign loans but on activating economic development sectorsBy creating local economic cycle and the development of the economy.

Then the loan took one side and leave the rest of the sides so that our economy will remain paralyzed unless the Government takes drastic solutions. "he said," that a lot of business readiness in previous years to finance giant projects until payment term method for up to 10 years and such precious opportunities must be invested, but there seems to be a will to keep the country on this case and the ongoing crisis. "banking expert Samir Al Nassiri refers to" understandingWith the International Monetary Fund holds first aspects concerning national effort that includes programs and activities by Government or plans "wondering:" is it possible to set up such programs can make a case of coordination between fiscal and monetary policies.

"he continued:" the other aspect relates to the private sector and what programs that stimulate this sector and help to contribute towards the best in moving from a specific role to the role of development andFew oil dependence. "suggested" establish a Bank for financing small and medium-sized enterprises with government funding by 25 per cent by contributing to the process of restructuring the banks provided undergo high control in the private sector increased by 75 per cent represented by private banks and other companies and national businessmen and chock that can take advantage of the private sector in moving economy,

"oil expert notesCollapsing Fouad Kassem Prince "Dion Kurdistan since 2014 yet reached 26.5 billion dollars, internal and external," wondered about the security type region in case he got 17 percent of international loan that the territorial Government is unable to meet because of the size of the debt, and called for a reconsideration of the law of the Central Bank in order to take advantage of excess reserves that are not utilized in the face of crisisCurrent economic financial expert called Akram Mohamed Hassan to negotiate with the oil companies instead of going to the World Bank for loans, as well as he could benefit from the Iraqi Central Bank reserves, particularly to the international standard for ceiling 42 billion dollars and reserve available is 52 billion dollars so it can take advantage of the $ 10 billion difference.

"the biggest failure was in Venture side requires conditions to improve investment and take advantage of international loan "likely the current political class could not submit a project to the solution. with industrial expert Hashim Danoun Al-atraqchi that the private sector contributes more than 60 per cent of the workforce in the world, said:" If the private sector is disabled it is running labour "calling" need to beThis sector exists in international loan through monitoring to increase national production and not rely on imports and of the most important private activators are implementing four laws (consumer protection customs tariff product protection monopoly).

"either Economist beautiful name Antoine asked about programmes put forward by the IMF to address the phenomena of unemployment and poverty in Iraq, noting that the number of retirees.Public sector exceeded 2 million either in the private sector 35 thousand and 150 thousand insured "and calling for rethinking things. with industrial expert said Amer jeweller of Bagdad" Economic Forum of oil prices even rebounding, it will not cover investment in the country, calling for a campaign or a National Council set up a programme to support the national economy and diversify or you will become our situation (borrow to eat only).

"and a challengeThe banker muwafaq Hassan Mahmud about possible actions and programs that will activate the private banking sector in Iraq by taking advantage of international loan. economist drew said Behnam despair Boutros risks in Iraq remain high and private sector needs a high degree of security, asking: "does the IMF conceived on the reality of the private sector to promote it?". Industrial expert Samir LILO surprised of the high interest rates charged on the loans granted by 6 to 9 percent, a very high percentage does not encourage borrowing while the global proportion is 1.5 per cent levied on interest rate guide IMF loan to Iraq banking expert drew with Husseini to having an integrated financial management project in Iraq was set up in previous years and could be utilized in loan Manager.

"the Bank Act Good laws, but the central problem in the issue of censorship that we need also in the process of pursuing international loan spending mechanisms. "the IMF had announced on the 17th of may 2016 granting Iraq a loan of 13 billion dollars to cover budget deficits and investment projects.

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