IMF agrees to release dues Contractors

03/19/2017 (0:01 pm) - The number of readings: 753 - Issue (3880)

Long / Zahra al - Jassem

Iraq managed to convince the International Monetary Fund launched dues Contractors who have a debt on the state, once the declaration of Supreme Audit the Federal completion of the audit of their contracts, as is confirmed by the financial advisor to the Prime Minister, who participated in the latest round of discussions between the Iraqi authorities and experts of the International Monetary Fund, on the second revision of the standby credit agreement.

This round of discussions called (halfway consultations) held in Amman, Jordan, and concluded the first on Saturday and can be completed in April next year.

In an interview (range) said yesterday d. The appearance of Mohammed Saleh said that the second revision of the Convention on the Stand-By consultations showed understanding and a resounding success, especially as it represents the half-way consultations between the two parties, and will be completed in late next April in the US capital Washington, during the annual spring conference of the institutions of the World Bank and the International Monetary Fund, and added: he was the head this success is understanding and agreement on the launch of dues Contractors all amounting to more than 4 trillion dinars as soon as the Federal Office of financial supervision announces the completion of the audit Contractors in decades, according to the best of our knowledge, the Court is nearing completion of this process.

Saleh also said that the IMF has asked some digital details of the audit and other financial arrears on the current budget level, in addition to the results of audits conducted by the Office of Financial Supervision on the paragraphs of salaries and wages in particular the completion of the intersection about who earns more than pay or career salary or pension from unlawfully or Contrary to the law, as the fund re-evaluation of its forecast for oil resources for 2017 will be which requires a re-evaluation of the budget deficit and the balance of payments and the analysis of the so-called sustainability of domestic debt and external gap. He stressed favor: that all of these indicators will be discussed in next April with the Fund to be an integral part of the completion of the final phase of the second review between Iraq and the International Monetary Fund consultations requirements.

He is scheduled to then display the results of the consultations between the two parties on the IMF Executive Board for approval within the next month of June, to get Iraq beyond the financial boost of more than $ 840 million dollars as part of the total loan Monetary Fund submitted to Iraq under the standby credit program of 5 0.3 billion dollars. He says financial advisor to the Prime Minister that the IMF being six major consultations with Iraq, accompanied by seven sub consultations, before they batches of its loans after the completion of key consultations, which are distributed over the 36 months from mid-2016 until mid-2019 under the Stand-By program signed between the two parties.

It allows Iraq agreement with the Fund on the ninth of May 2016 to secure additional international financial assistance of up to about $ 15 billion over the next three years, annual interest rate of up to 1.5%, noting that the total receipt of Iraq from the Fund loan since July 2016 so far is about one billion and $ 252 million, in the hope that Iraq gets also in the spring of this year on the financial boost of more than $ 840 million as part of the Fund's total loan provided to Iraq.

In the same context, head of the IMF mission in Iraq, Christian coconut confirmed in a statement received (range) a copy of it, that Iraq was severely damaged due to the conflict with al Daesh, and the sharp drop in world oil prices since 2014, felt that the Iraqi government responded to the fiscal crisis, and the crisis the balance of payments, through a large and essential financial correction, supported by financial assistance from the international community, explaining: in 2016, the real growth of the gross domestic product by 11%, supported by a substantial increase in oil production, which benefited from previous oil investments continued, however shrinking economy non-oil by 8% due to the conflict and to correct public finances, but is expected in 2017, to keep economic activity muted due to reduced oil production by 1.5%, under the agreement reached by the Organization of petroleum exporting countries (OPEC), and the recovery is modest non-oil sector. "

He pointed coconut in his statement that the sharp decline in oil prices also caused lower gross international reserves of Iraq from 53.7 billion dollars at the end of 2015 to $ 46.5 billion at the end of December 2016, but considered that the decline the level is still comfortable, but there remain under pressure large afflicting public finances, with the government deficit remains at a level of 12% of GDP in 2016, due to continued weakness in oil prices, high humanitarian and security spending, with an increase in total public debt from 32% to 64% of GDP for Iraq the period between the year 2014-2016, in addition to slowing credit growth and rising bad loans at state-owned banks and private banks and dramatically in 2016. "

He acknowledged coconut in his statement, that the Iraqi authorities maintained the exchange rate peg, which is an important par pillar, to keep the growth prospects in the medium term modest because of the expected oil production constant, and the stability of its investment in the face of constraints on revenues, and the recovery modest in the non-oil growth, supported by improvements expected in the security situation and the implementation of structural reforms, with the need for more reforms to create fiscal space inclusive growth, and enhance the business environment, reduce corruption, and reform of the banking sector to support growth led by the private sector, and diversification in the economy, once it launched the reconstruction process in post after organizing Daesh afterthought, but the risks remain high, and that is the basis stems from the uncertainty surrounding the prospects for oil prices, the security situation and political uncertainty, with citizen management weaknesses.

And dealt with Oman discussions, which lasted two weeks, Article IV of the 2017 consultations, and the second revision of the agreement to prepare the credit (SBA) approved by the Executive Board of the International Monetary Fund on July 7, 2016 and is intended to correct the fiscal balance and the balance of the external position, and improving public financial management, while protecting social spending for the country. Included Iraq, meeting with IMF mission both Finance Minister acting Abdul Razak Isa, the Governor of the Central Bank of Iraq and the agency Ali Mohsen Ismail Keywords, as well as the financial advisor to the prime minister, and officials from the ministries of finance, oil, planning, and Oil Marketing Company (SOMO), and the device Central Bureau of Statistics, the Iraqi Central Bank, and representatives of the Kurdistan Regional Government and the Office of financial supervision.