IMF agrees to release dues of contractors

2017/03/19 (00:01 pm)

Range/zahraa Al Jassim

Iraq had succeeded in persuading the IMF to release the dues of contractors who have debts to the State, once the federal financial control Bureau announcement finished checking their contracts, as is confirmed by the financial adviser to the Prime Minister who was involved in the latest round of discussions between Iraqi authorities and the International Monetary Fund experts on the second revision of the standby credit agreement.

This round of debates called (consultations halfway) held in Oman and Jordan concluded Saturday and can be completed next April.

In an interview (range) yesterday said Dr Mohamed Saleh appearance that consultations the second revision of the standby credit agreement showed understanding and success, especially as they represent a halfway between the parties, consultations and will be completed in late April in Washington during the annual Spring Conference of the World Bank and the International Monetary Fund, added: he was on top of this success is understanding and agreement on the launch of all contractors ' dues of more than 4 trillion dinars just to announce the federal financial control Bureau check completed in Contractors, and as far as the Bureau is about to wrap this up.

Saleh also said that the Fund request some details for audit and other financial arrears on current budget level, as well as the results of the checks conducted by the Office of financial supervision on salaries and wages in particular paragraphs complete intersection about who earns more than a wage or salary job or pension from unfairly or contrary to the law, the Fund will also reassess its expectations about oil resources for the year 2017 which require reassessment of the general budget deficit, balance of payments and analyze what is called internal and external debt sustainability.

Saleh said: to all those indicators will be discussed next month with the IMF to be an integral part of the complete requirements for the last stage of the second audit consultations between Iraq and the International Monetary Fund.

And be presented then the results of the consultations between the parties on the IMF Executive Board for approval within the next month, to get Iraq on payment of over 840 million dollars as part of the total IMF loan to Iraq under the programme prepare 5 credit, 3 billion dollars.

He says financial advisor to Prime the IMF being six major consultations with Iraq including seven subsidiary consultations before loan payments after completing the main consultations distributed over 36 months from mid-2016 to mid 2019 under standby credit program signed between the parties.

And allows Iraq agreement with the Fund on the ninth of may 2016 securing additional international financial assistance up to $15 billion over the next three years, with annual interest of up to 1.5%, the total receiving Iraq Loan Fund since July 2016 so far is about a billion and $252 million, hoping to get Iraq this spring also on money more than 840 million dollars as part of a total loan fund provided to Iraq.

In the same context, the head of the IMF Mission in Iraq Christian JAWS in a statement (range) a copy, that Iraq strongly affected by conflict with the Organization of ISIS, and the sharp drop in world oil prices since the year 2014, and saw that the Iraqi Government responded to the crisis of public finances and balance of payments crisis, through substantial financial correction and necessary, supported by financial assistance from the international community, explaining: in 2016, the real GDP growth rate of 11%, supported by a significant increase in oil production, which benefited from Former oil investment, however the non-oil economy shrank by 8% due to the conflict and correct the public finances, but expected in the year 2017, if economic activity remains low because of reduced oil production by 1.5%, under the agreement reached by the Organization of petroleum exporting countries (OPEC), and the modest recovery of the non-oil sector. "

In his statement to the coconut noted that the sharp decline in oil prices also caused by low total international reserves of Iraq from 53.7 billion us dollars at the end of 2015 to 46.5 billion dollars at the end of December 2016, but consider that the level of decline is still comfortable, but there remains a degree of stress experienced by public finances, with the government deficit at 12% of GDP in 2016, because of continued weakness in oil prices, the high humanitarian and security spending, with total debt peaked Year of 32% to 64% of Iraq's GDP in the period between 2014-2016, in addition to slowing credit growth and rising non-performing loans to state-owned banks and private banks and heavily in 2016.0 "

In his statement, the nut acknowledged that the Iraqi authorities maintained the link exchange rate, it is important to keep nominal pillar the growth prospects over the medium term are modest because of steady oil production expected and steady investments in the face of restrictions on revenue, modest recovery in non-oil growth, supported by the expected improvement in the security situation, carry out structural reforms with the need for further reforms to create fiscal space for growth, and strengthen the business environment, reduce corruption, and reform of the banking sector to support private sector-led growth and diversification of the economy, as soon as Starts the process of reconstruction in post organization ISIS, but the risk remains high, and it stems form the basis of the uncertainty surrounding the prospects for oil prices, the security situation and political uncertainty, with the administrative weaknesses.

Oman discussions that lasted two weeks, article IV consultations for 2017, the second revision of the standby credit agreement (SBA) approved by the Executive Board of the International Monetary Fund on 7 July 2016 and aims to correct the balance of public finances and the external Centre balance, improving public financial management, while protecting the country's social spending.

And join Iraq meeting with IMF mission both acting Finance Minister Abdul Razak ISA, Central Bank Governor Mohsen Ismail agency relationship, adding to the financial adviser to the Prime Minister, and officials from the ministries of finance, oil, planning, oil marketing company SOMO, Central Bureau of statistics, the Central Bank, and representatives of the Kurdistan Regional Government and the Office of financial supervision.