World Bank loans require financial control over Iraq and opponents they consider " a derogation of national sovereignty . "

Views 32 Date 05/17/2016 - 16:38

BAGHDAD / Economy News ...

I went back to the parliamentary Committee of Economy and Investment, on Monday, the demands of the International Monetary Fund of Iraq to agree to lend as "do not constitute conditions" but a vision to address the economic crisis being includes a reduction in spending and focus on productive sectors to enhance budgetary resources. The external borrowing, which imposes conditions most notably the "international financial control over Iraq" experts opposed, and its enemy, "detraction of national sovereignty", specialists stressed that "it is essential" to cope with the economic fallout. "

The Iraqi delegation, headed by Finance Minister Hoshyar Zebari, and the membership of the Prime Minister for Financial Affairs Advisor to the appearance of Mohammed Saleh, and the Governor of the Central Bank and the Agency on the Keywords, and a large group of specialists in the ministries of oil, finance, planning and electricity, as well as the central bank, is negotiating with the International Monetary Fund are currently, in Amman, Jordan, to get soft loans.

The Chairman of the Committee on Economy and Investment parliamentary Jawad al-Bolani, said that the IMF did not impose conditions on Iraq in return for lending, as some believe, but gave a vision to address the significant problems faced by the national economy as a result of its dependence on oil only, "noting that" the fund wants the government Iraqi reduce their spending and focus on productive sectors to enhance budgetary resources. "

Bolani added that "the Prime Minister Haider al-Abadi, said that state resources sufficient to cover the salaries only," returned "The solution is that government departments rely on imports, and to be a productive state, as well as edit taxes and activating the industrial and agricultural sectors."

And he approved the Chairman of the Committee to "the existence of points of mistakes taking advantage of the survival of Iraq under the financial and economic pressure, and that the budget did not achieve its goals of being political," adding that "the international economic institutions want to be an economic goal of Iraq's budget and that the pressure is on certain aspects to improve performance."

For his part, economist Ahmed Rehn, said that the loans that Iraq sought to obtain it from the International Monetary Fund and major industrial countries is limited compared to the size of domestic spending, "pointing out that" the International Monetary Fund imposed by the custom requirements on countries that lend may not be consistent with Iraq's economic and financial situation. "

Rehn said that "Iraq should be planned on not to resort again to international financial institutions," but he also said, "Unfortunately, the government is determined to deal with those institutions since 2003, and so far, although they dictate its terms to the state that deal with it."

He declined an economist, "the imposition of any international financial control over Iraq," returned that "it constitutes a derogation of national sovereignty."

In turn, the economist said spokesman Anton, said that "Iraq's oil exports of three million barrels per day has been exceeded, and that there are expectations of an increase of the price of crude allowing salaries of state employees insurance."

Anton said that "the Iraqi government's obligations and deficits that nearly 16 percent of GDP, worsening economic hardships," and expressed regret that "the Iraqi government has not been able to transform the economy from the oil yield to the agricultural industry."

The economic expert on "Iraq's need for international loans," noting that it was "natural that puts the IMF conditions and watching any loans the country's economy, and that this does not constitute a violation of the rule, as some believe."

Anton pointed out that "the imposition of taxes and the application of the tariff law may believe resource plus oil," but he also said, "But the economic crisis remain valid in light of population growth and the requirements of infrastructure, which requires orientation to get soft loans from both the International Monetary Fund or the Islamic Bank development or from the inside. "

For his part, the head of the Iraqi Economists Association Abdul Hussein al-Yasiri, the IMF sets conditions on any country lends a guarantee of his money, "adding that those" conditions that balancing the country concerned should be transparent, and that the disposal of money on things are very necessary, and to be making financial taken by the Government of that country that are reasonable. "

Yasiri pointed out that "Iraq has begun to achieve those conditions," and expressed optimism that "Iraq overcome the current economic crisis as working to increase the production of wheat, a substance that believes in the economic situation and food."

Promised Prime Iraqis Economists Association, that "the conditions of the International Monetary Fund is not a dilemma, despite the arbitrariness sometimes, as long as Iraq was developing his economic policy," stressing that "the delegation of Iraq, which is negotiating the fund houses keen interest of the country significant economic expertise, and will not accept any arbitrary conditions."

It was the financial advisor to the Prime Minister and the appearance of Mohammed Saleh, announced on Saturday (14 May 2016), that Iraq sought to borrow $ 16 billion through the preliminary meetings with the International Monetary Fund.

Saleh was confirmed, in the (26th January 2016), that Iraq has agreed with the International Monetary Fund for long-term soft loans for the implementation of development projects, noting that the fund is among other conditions, the government expenses, and adjusted some of the procedures relating to economic policies, while counting the economist that the "most important" of those loans is to know the amounts that will be obtained during the year 2016.

It is said that Iraq declared in the (13th January 2016), 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 current year.
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