Iraq needs $ 50 billion to install its financial situation and save the economy

by **Ponee** Fri Jun 03, 2016 8:55 am

Economic adviser to Iraqi Prime Minister revealed the appearance of Mohammed Saleh said that the World Bank and the IMF appreciate the size of the financial distress experienced by Iraq's $ 50 billion between 2016 and 2019. He explained during a seminar organized by the «Institute for the progress of the development policy», attended by experts and interested, that «access to the international loan is not easy, but requires implementation of a series of measures including informing the International Monetary Fund on the net real exchange for Iraq during 2015».

He added: «Fund discovered after follow-up of the exchange that salaries are exaggerated, as well as inflation in other areas, what he paid and the World Bank to demand from Iraq calculate the price of a barrel of oil set at $ 35 rather than 45, and the export of 3.6 million barrels per day, bringing the deficit to $ 11 billion », adding:« after deleting a lot of other expenses (exaggerated), left $ 6 billion a year, the Fund and the World Bank take care reimbursed »

Saleh indicated that «the agreement obliges Iraq to issue a Financial Management Act and the introduction of the Integrity Commission as an active player in the independent follow-up process and the adoption of the United Nations document against corruption, accompanied by an amendment of the Central Bank Act restricts the Ministry of Finance of new foundations and the placement of external and internal debt to the audit, since religion internal year amounted to 37 trillion dinars ($ 33.4 billion) ». He stressed that «the International Monetary Fund agreement with the federal government does not refer to allocate a portion of the Kurdistan region, as the Government of the Territory took the initiative to subject its oil exports to a foreign auditor to be submitted to the federal government.»

Saleh pointed out that «the World Bank request from Iraq prepare detailed breakdown of the economic its potential and limited to money and assets available to the state institutions and knowledge of dues Contractors details, accompanied by governance performance of the Ministry of Finance and the restructuring of the bank of good government and Mesopotamia, and the establishment of a deposit insurance, social welfare and the ration card and displaced communities Inc. ».

He said that «the relationship with the World Bank and the IMF began in 2004, and that Iraq is a founding member of the Bank and the Fund since 1944, but the relationship foundered in 1977 after the former Iraqi regime had decided not to provide the Fund data on the Iraqi economy, but relations have returned with regulators to nature after 2003 »

He pointed out that «relations organized by the UN Security Council which committed Iraq positively engages with the IMF and the World Bank in order to reach the settlement of foreign debt through the Paris Club, which is a binding agreement decision and not an option for Iraq, as the recent stability is part of the regional and international economic stability» .

Saleh indicated that «the agreement with the IMF was very transparent, no secrets or Khvaya in relation to the loan», adding that «Fund is interested in the issue of poverty in Iraq because of the high indicators, which amounted to 23 percent, and the presence of large numbers of displaced people, and the there are four poor people of every 10 people displaced, and the per capita share of GDP due to falling oil prices fell from seven thousand dollars to four thousand, and the unemployment rate rose to 23 percent ».

He added: «We have another problem of entitlements oil companies that get $ 10 for every barrel, regardless of the sale price, and there are accumulated dues back the past two years and the current value of billion dollars a month to meet the production costs and accruals Contractors amounting to 7.6 trillion dinars, and the problem left behind by issuing bond »

He said: «Iraq send a message to the International Monetary Fund» in the 15th of this month «confirming his agreement to the conditions and mechanisms and the framework for fiscal policy, and presented to the Fund's Board of the end of June the management, if endorsed by the Governing Council is an agreement in force and release the first batch of fund loan that not less than $ 600 million, gets Iraq on the loan in full by 13 push over 36 months, and before each batch Bank reviews the achievements of Iraq than the previous installment, and be allowed to three years for each batch of loan payments and interest rate of 1.5 percent period ».

And display financiers, economists and businessmen who attended the seminar, a number of ideas and observations about the reasons that have brought Iraq to the catastrophic economic results.

Former Planning Minister Mehdi al-Hafez and explained some of the things on this file, and if the cause of the economic downturn loans are not important, or resorting to excessive borrowing. He said: «The conditions that the country is experiencing now is normal and can not come out without the presence of a real sound management and a review of the political and financial management»

He said banking expert Majid picture «external debt amounted to 65.5 billion dollars, including 47 billion for the Gulf States, and the total internal and external loans reached $ 96 billion, including new debt and make up 77 percent of gross domestic product may rise to 100 percent» , stressing that the problem lies in the state administration.

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