IMF: GOI freeze hiring & salary increases impose electric duties to grow revenues
IMF: The Government of Iraq will freeze hiring and salary increases and impose duties on electricity to Aziadh revenue (details)
16-07-2016 04:22 PM Hits: 4103
Orbit News -
Publication of the International Monetary Fund memorandum issued by the Iraqi government , which has vowed to "apply the hiring freeze policy in most sectors , and increase pensions (salaries) and charging for electricity in order to increase revenues."
The memorandum added that "economic activity for Iraq shrank by 2.4 percent in 2015 , " expected " to grow by 10.3 percent in the current year."
She pointed out that "Iraq will cut spending in the non - oil budget in 2016 by 15 percent and Sestdan billions of dollars in light of falling oil prices more than expected."
The government said in a letter to the sender of the International Monetary Fund in June to apply for a loan under the demand that it "now expects to reduce the deficit to $ 4.9 billion in 2016 and then to $ 13.2 billion during the period 2017-2019."
She noted that "other sources of funding to fill this year 's deficit may include loans worth more than two billion dollars from the World Bank participate in the guaranteed France, Britain, Canada and loans worth more than three billion dollars from the United States and other lenders."
The government also said the International Monetary Fund , according to the note that he is committed to "pay - out" of receivables overdue for international oil companies by the end of 2016, and estimated the arrears in the past year , billions of dollars.
The IMF agreed recently on loan demand, allowing Iraq to get first payment of $ 1.9 billion.
The government plans to withdraw from its foreign exchange reserves over the next few years to help support this funding, and expects that reserves fall to $ 31.5 billion in 2020 from $ 59 billion in October last year.