MPs: pay on credit law is contrary to the requirements of the International Monetary Fund

12-03-2012 | (Voice of Iraq)

Commission said services and reconstruction of parliamentary that the House rejected the Law of the payment on credit was the result of incompatibility with the policy of the International Monetary Fund, referring to the possibility of re-consideration of this law in the event demanded the government do so, at the same time stressed a number of experts that the government did not comply with the instructions of the International Monetary Fund for the development of its banks and its financial transactions as required.

It is noted that the International Monetary Fund called on the Iraqi government to cover the fiscal deficit made in the federal budget and the development of the banking system in both its government and private and financial reforms and other economic.
It showed a member of the Services Committee, the parliamentary Kamilp Moussawi, according to (Twilight News): The House of Representatives had a fear of the law of payment on credit for the adoption of the former regime was during the period of his rule, and liver of the country's debts are a great addition to that law inconsistent with the policy of the International Monetary Fund. Musawi said that Services Committee and reconstruction will host the Minister of Municipalities regarding the law of the infrastructure for inclusion in the agenda of the House of Representatives and a vote on confirming that the payment on credit does not belong to housing projects and low cost, but also includes all the development projects in the country. "
The al-Musawi: In the case of dependence on the budget in the implementation of the projects there will be no development of urban and can not rise up the economic reality in the country ", stating that" the law of payment on credit will solve many problems facing the process of construction and development. "They pointed to the possibility of review of the law payment on credit and included under the budget law.
Agreed earlier in the financial committees, economic, legal, oil and gas on the repeal of article 25 of the financial budget, and placed strict controls for projects where the payment on credit and add a paragraph in the budget, related to audit the accounts of state institutions by the Council of Representatives and the monthly and is sent to Help Budget after the vote it to the provinces during the week.
Meanwhile, the number of experts that the government did not comply with the instructions of the International Monetary Fund for the development of its banks and its financial transactions as required, confirming the inability of Iraq to meet the demands of the Fund.
The economist said Ali Ke Ji according to (Rn) that the government did not implement the mechanisms of the International Monetary Fund to develop its dealings Banking and Finance as required in exchange for a loan of U.S. $ 3 billion, pointing out that banking transactions require to make way for electronic trading and the development of the banking system mail to withdraw money distance and the expansion of private banks dealings with government institutions. "
He added that the transactions Ji Ke's central bank is still limited to preserve the value of the dinar from the national development without real political cash balance in the country so that the fiscal policy pursued by the government, particularly with regard to the implementation file of the budget year.
In turn, the Director-General of the Bank of Mercy National Previous Abbas Hnaoh (Rn), the IMF asked the government to reduce the budget deficit, which has not Talph the last budget in 2012. He Hnaoh that the government needs to the loans of international financial order to cope with the demands of economic development International and the need for the global market to the trading banking and financial high-resolution level. "He said the banking Iraq is still a primary or balanced with the aspirations of the country and plans drawn up by the development of the internal structural of these banks in both its public and private sectors," noting that "the deficit in the current year budget is possible addressed by relying on oil prices remain above $ 100.
For his part, the Central Bank of Iraq did not distract from the IMF loan has a $ 3 billion only two billion dollars for backup. "Said Deputy Governor of the Central Bank of the appearance of Mohammed Saleh (Rn) that the government were not needed to borrow from the IMF only For the purposes of credit and back-up for fear of the financial crisis, noting that "the interest of Iraq to take advantage of the Fund's experience in banking dealings in the next phase."
Saleh added that Iraq agreed with the Fund during the meetings ended yesterday in the Jordanian capital of Amman to start the implementation of high-level plan for the development of the financial dealings of private banks and government. "
And completed the International Monetary Fund last week's second review of the progress achieved by Iraq under the program supported by the loan, and the condition of the need to fund Iraq's semi-drastic changes in the tax system as a basis for granting loans and to support its projects.
Iraq had decided since the beginning of 2006 to restructure State-owned banks have, as government continues to rely on its financial transactions on the government banks by 85%.
And the International Monetary Fund expressed recently his support of the Iraqi economy in the event of his a number of economic measures, including raising three zeros from the local currency.
The House of Representatives has approved during its meeting held on 23 February, the budget of the year 2012, which amounted to 117 trillion Iraqi dinars, equivalent to about 100 billion U.S. dollars.
The Minister of Finance and Planning Minister and President of the Office of Financial Supervision met, on Friday the nineteenth of this month, with the International Monetary Fund in Amman, the capital of Jordan to discuss the reality of the Iraqi economy, and the development of a new map for spending budget this year, and was Finance Minister Rafie al-Issawi called for a new law to pay on credit.