Benefit: the Government can borrow from the Central Bank 1-9
Benefit: the Government can borrow from the Central Bank
January 9, 2016
Cabinet Advisor for Economic Affairs Mohammad Saleh appearance on Saturday, the Government could borrow part of the money the Central Bank for help in the financial crisis, with borrowing required to be tabular.
He said the appearance of Mohammed Saleh told the News Agency obtained our economy "article 26 in the Central Bank law stipulated to prevent the Central Bank from lending to the Government and a harsh response to the policies of the former regime but lived in Iraq today and the need for liquidity as possible adjusted to allow lending the Government a part of its Treasury funds."
Saleh said that "there are a lot of States worked on this thing and there are about 50 articles similar to article (26) located in the Central Bank law to assist the State in financial crises," adding that "lending is not at any time, but when the State is in dire need of cash.
He said economic adviser that "lending must be not from this year's budget, but the budget of the previous year and possible to be borrowing by 10% from the fiscal deficit in the country's general budget, or 15%, depending on the agreement with the Government or be lending by 10% of the total expenditure of the Government during the year and must be paid during the year can also be lending in foreign currency if the Iraqi Government external obligations."
He stressed that "this move does not prevent the independence of the Central Bank because it would be limited and the content of the law this law can make for Central Bank independence is relative", pointing out that "the Central Bank's reserves come from the Government's unreasonable when the Government needs Central Bank abandoned because Iraq is undergoing difficult circumstances."