International tribute to the government's reform measures
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    International tribute to the government's reform measures

    International tribute to the government's reform measures



    The governor of the Central Bank of Iraq on , the Bank and the International Monetary Fund praised the procedures reform in the monetary and fiscal policy conducted by the government and central alike, noting that more than 250 companies from different nationalities competed to buy the international treasury launched by Iraq Majara.oukal Keywords in bonds dialogue with the «morning»: the «general budget for the current year law included the issuance of international bonds worth US $ two billion as part of the deficit in the budget of the year 2017», noting that «the first billion was issued a guarantee from the US government, which helped to reduce the amount of interest to the limits of 2 percent and Iraq need this kind of guarantee that bonds the second meal worth one billion also issue an interest rate higher than the first, at that when the pool Alvaidtan interest is acceptable and does not constitute weight to the public treasury of the state. »

    He added Keywords
    «we were surprised by the turnout and the willingness to buy treasury bonds billion second dollars when it launched in the global financial market as it made more than 250 international financial company from America, Europe and Asia applications reached $ 6.5 billion and settled the interest rate on 6.75 percent, while it was expected interest rates to be more than 8 percent », noting that« when collecting six percent, the second interest rate with 2 percent interest rate for the first and divided 2 for two billion become a total interest rate of 4 percent, which is acceptable, and compared to the bonds offered in the 2014 interest rate of advanced By these companies more than 11 percent, which invited us to refrain from issuing bonds at the time because the interest rate was high. »

    And on the impact of Iqbal international companies and their desire to buy treasury bonds on the financial and economic situation in Iraq, the central bank governor said that «gave an indication of the recovery of the Iraqi economy and the confidence of these companies it has been raised during the promotional meetings of the bonds with the 250 companies many questions related to economic, financial and monetary conditions in the country on the Iraqi committee , headed by the Governor of the Central Bank of the membership of the Ministry of Finance and the Office of the Prime Minister, the Committee provided answers to these companies enhanced data were enhanced with high reliability of the reports of the international Monetary Fund , which knows the financial situation Ala Nation of the country in all its details and watch over the borders and the ceilings set by Iraq 's commitment », pointing out that« the nature of the sources of these reports gave the credibility of a good impression to all companies there was a focus on monetary policy because it matters pertaining to the investor in terms of the dollar exchange rate and the cash reserve and the size of the debt and other price as that helped to ensure the success of these dialogues a decision by the board of the international Monetary Fund to approve the report of the Fund , which includes the second review of the Convention to prepare credit with Iraq , where positive indications about Iraq 's commitment to the terms of the agreement and commitment given the results of the team Financial and monetary indicators issued thanks to the Central Bank and the Finance Ministry and the Prime Minister 's Office. »

    He continued Keywords «I can say with pride that the central bank had completely fulfilled the Fund 's requirements and was fully consistent with the indicators developed by UNFPA in terms of reserves, exchange rate and auditing central bank accounts internationally great development measures bank in banking supervision and anti - money laundering and the financing of terrorism and other points It was the subject of interest in the Fund. »

    And his response to some of the reports that indicated that Iraq is threatened with bankruptcy of the high volume of debt compared to local Bnatjh, Keywords explained that «debt in the international standard regards pro rata relative to GDP , and this percentage , according to state capacity could reach 100 percent in some developed countries, in Iraq, according to the international standard, the ratio limit is now within 60 percent of gross domestic product », adding that« when Iraq 's debt analysis , we find that $ 45 billion of which date back to before 2003 and most of the Gulf states , especially Saudi Arabia and these countries gave signals in a number of occasions that it did not call for Iraq to fill Son to now , while the part of these countries noted their agreement to be settled so when talking about the public debt must put nearly 45 billion in isolation because these debts in the worst case will be settled in the Paris Club whereby payment of 10 percent of the amounts or perhaps extinguished » .

    Keywords and went on to «pessimistic analysis did not distinguish between debt called (hateful) returning to pre-2003 , which should be subject to certain adjustments were made until now and when excluding these debts we will see that we are still in the acceptable limits , according to international standards for the size of the debt General ».

    Keywords pointed out that « the central bank has debts of the state up to 16 trillion dinars , the largest part of local debt is under control and consume Iraq 's budget or lead him to bankruptcy», indicating «calculates the country 's ability to carry debt through the annual premium required of it, not size total is the basis of it may be a little size, but it required a short duration may be sized large, but for long periods and for us the benefits of external debt of up to one billion dollars annually , and this is unaffordable and premium local whole debt annually up to 5 trillion dinars and pay premiums foreign loans $ 400 million annually rise in Age Wat next ».

    Keywords He added that «Iraq is required annually in interest for loans up to $ 5.5 billion a year , and this figure does not lead the country to bankruptcy , there are countries unable to pay their obligations when it solutions developed to address this deficit, but we are called to take the precautions necessary and strengthen the country 's financial situation for the coming years» , noting that «2016 was a big shock could not be easily absorbed by the decline in oil prices was therefore adapt to this situation is almost impossible issue but then began some of the measures taken by the government to adapt through the pressure of expenses and increase local revenues What is required of us planning properly , The country does not expose to financial pressures or crises and re - consider the structure of public expenditures of the state and to activate and maximize local revenues within the law and order and regulations currently in force and we do not call for the imposition or increase fees, taxes or other, but we call for control over state resources and prevent access to the pockets of corrupt and manipulators as gets with regret in the weak contribution of tax and customs revenue in the general budget of the state. »

    Asked about the coordination with Arab and international, especially the Gulf central banks, the Governor of Bank of Iraq replied «We have relations with all Arab and international central banks in particular , and we meet in the framework of the Arab Monetary Fund Kmhafezan and we meet in various other international financial institutions Vallqa and coordination in some things with Saudi Arabia is based away from political issues because it is a professional economic institutions and the issue of debt cancellation or settled a political issue par excellence so we expect to provide improved relations with other countries , especially the Gulf and Saudi Arabia , an appropriate framework to resolve this issue ».

    And calls for the devaluation of the dinar against the US dollar to stop waste in hard currency, the Keywords stated that « the subject put forward on several occasions and at various levels and has been studied Provides peer by the Central Bank and to consult with the International Monetary Fund around», adding that « the Iraqi Central Bank takes into mind that any reduction of the value of the dinar to the importing country and is not a source will pay the price exorbitant citizen we know that the income of a large proportion of Iraqis comes from government salary . If the devaluation of the dinar will decrease the purchasing power of a large number of Iraqi families as if we imposed a tax on all citizens , regardless of Including their living standards would hurt everyone, especially workers in government service, as well as the reduction would have been not only provide a simple sum ».

    On the foundations of the monetary policy of the country, between that «monetary policy is not built on the basis of events or emergency crises , but must take it on the path in the medium and long accounts term and for us not resort to modify the value of the currency as the price of oil fell», noting that « the country 's reserve of foreign currency and his mission to fill the gap in the crisis in order to exceed the stage and this is what happened in 2009 ».

    In answering investments that make up the financial returns of the Central Bank of Iraq, the Keywords said that « the central bank 's investment specific foreign currency, gold and treasury bonds These are mainly free of risk and be with central banks or classified first banks in the world Ventaaml with the US Federal Bank and London banks, France and the Netherlands Australia and is now looking for investment in the Chinese currency », warning that« there is a rule in effect that investment whenever the degree of risk a few or non - existent, the yield is little investment and this nature we have a risk - free and paybacks are very limited ».

    Keywords However , that «there is room for maneuver and diligence within certain limits may create a difference such as investing in gold , which may rise and a good payoff or does not rise Venmay to store it », pointing out that we are «we thought not to pay for gold storage wages but Nsttmrh manner in which these wages do not take and achieve a simple revenue of success as achieved by investing in the Islamic development Bank and has achieved a good performance ».

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    Last edited by pusinsbiz; 09-01-2017 at 05:29 AM.



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