Specialists warn of worsening debts of foreign loans and the need to move towards maximizing resources in the budget next year




2017/10/19 (00:01 PM) - Number of readings: 264 -




Baghdad / Fadia Al-Jawari

The resort of Iraq to international loans did not come arbitrarily, but the urgent need after the difficult economic circumstances and challenges, most notably the decline in oil prices in the world and the war on the terrorist's calling, which cost more than 40 billion dollars.

This logic has been addressed to the International Monetary Fund and the World Bank and Iraq entered into an alliance and an agreement called credit arrangements known as the (SBA), which impose precise obligations and conditions, but is consistent with the requirements of economic reform, which we seek to improve financial performance and strengthen financial governance and control in the work of the Central Bank Through the amendment of its law, and control in the accounts of the State and the management of cash flow, and amend the Financial Management Act and amend the Commission on Integrity and the prosecution and recovery of fugitive funds.

The economic adviser to the Prime Minister appearance of Mohammed Saleh, on Wednesday, Iraq received $ 4 billion from international institutions supporting
Saleh said in a statement to (range) that "the negotiations of the Iraqi government with the International Monetary Fund has led to grant Iraq $ 2 billion dollars during the past 18 months."

Saleh added that "the IMF pledged to pay $ 5.5 billion over a specified period of time, in addition to receiving a loan of two billion dollars from the World Bank for a total of 4 billion dollars."

"The continuation of negotiations between the Iraqi government and the International Monetary Fund has led to positive results, especially in the process of tightening the federal budget and its focus towards important economic points, noting that" Focused on reducing the fiscal deficit resulting from the almost total dependence on oil resources financial without activating other resources. "

For his part, said the academic and economist Abdul Rahman al-Mashhadani that Iraq and until recent months, the cost of his war against a dodger of $ 40 billion, and the budget of 2017 estimated at 100 trillion dinars, if calculated 40% of the cost of war, we have about 40 Billion dollars and spent nearly 20 billion dollars for the current year only on the war and this figure exaggerated

He added that "this year is a more stable year for the economic situation because the state entered into a state of austerity and rationing in its expenses, in addition to that the military operations ended against the victory, and cut a great deal of liberalization, and therefore we need payments by Supporting international institutions such as the International Monetary Fund or the World Bank. "

Mashhadani continued that the next budget for 2018 is a bit different from the previous budgets, because it includes planning and follow-up accurate before the approval at the beginning of next year, but still the operational budget is the largest part, and still rely on external debt because of low oil prices to about $ 51 per barrel, And Iraq sells up to 48 dollars, "pointing to the rise in public debt next year, because of the survival of the government on the current mechanism itself in the financing of the budget, and there will be issuance of treasury bonds

He pointed out that Iraq continues to borrow external, especially from the International Monetary Fund, to complete the process of lending is scheduled, which took nearly five billion dollars out of 18 billion dollars of international commercial banks, which guarantees those loans the World Bank, pointing out that the budget for next year Not conservative

Mashhadani pointed out that the state has started the right steps to maximize resources, through the reactivation of laws, tax and customs, and these revenues constitute more than four or five times the previous revenues, such as customs revenues and tax, more than $ 10 billion, while not constituting $ 1.5 billion and we expect That the customs revenue for the current year to nearly $ 7 billion, and next year will exceed $ 10 billion.

"The negative impact of the ongoing borrowing from the International Monetary Fund (IMF) will lead to serious economic problems because of its dealings with government agencies exclusively," said Salam Samisem, an economist.

Stressing the application of economic programs according to a certain mechanism that these workshops need the support of international organizations to the work of international reports as well as the work of voluntary organizations inside Iraq and the monopoly of economic reform.

And called on the International Monetary Fund and the World Bank to expand its base and cooperation with the Iraqi private sector and Iraqi economic figures to reach large economic targets

It is noteworthy that the Minister of Finance and the Agency, Dr. Abdul Razzaq Al-Issa revealed earlier the readiness of the World Bank to allocate nine million dollars to support investment and development in the field of gas accompaniment

Al-Issa said during the spring meetings of the International Monetary Fund and the World Bank in Washington that the Iraqi government will intensify the work of the joint committee between the ministries of finance, electricity and oil to activate the investment of gas associated with and benefit from the operation of electric power projects, noting the readiness of the World Bank to provide a grant of nine million dollars to support projects and studies For the associated gas investment in Iraq.

The Ministry of Finance said in a statement that representatives of the World Bank pointed out that economic reforms are a major necessity to reach an integrated system to manage the financial process of the state at the federal and local level

She added that the participants pointed out that the proportion of the task achieved by Iraqi institutions in this area, which gives the appropriate room for the World Bank to support the budget and reconstruction projects within the time limits achieve the desired objectives

The Bank welcomed the steps taken by the Government of Iraq in the area of ​​resource management and the development of reform visions in coordination with international financial organizations and institutions

World Bank Vice President Hafez Ghanem said during a meeting with the Iraqi delegation earlier that the World Bank was committed to Iraq to provide the financial requirements of reconstruction operations In liberated areas

The World Bank team explained that the reconstruction of these areas and the acceleration of the implementation steps will be established for continuous support in the light of what is needed and what the Iraqi government needs.


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