Stand-By Arrangement with the International Monetary Fund «SBA»
Stand-By Arrangement with the International Monetary Fund «SBA»
8/7/2016 0:00
Obtained by the «morning» exclusively
Baghdad – the morning of the
Executive Board of the International Monetary Fund endorsed on 7 July 2016 an agreement (standby credit with Iraq arrangements) that is embodied in the appendices accompanying (by Iraq) and of the letter of intent and memorandum of economic and financial policies and a memorandum of technical understanding.
the aim of the mentioned to close the financial gap of more than $ 50 billion over the years 2016-2019 agreement. The agreement will also provide credit facility (in a soft loan) of $ 5.3 billion.
Granted credit facilities by 13 installments starting from mid – July 2016 ,
and the loan term is five years (each installment) interspersed with a grace period is about three years and an interest rate Simple is 1.5 percent – 2.5 percent (according to the share of Iraq ceilings).
It is expected that Iraq received during the second half of this year for nearly $ 2 billion in three installments. The first installment in the month of July 2016 be and the amount of approximately $ 634 million.
A willingness credit agreement financial umbrella for Iraq more than $ 20 billion , which is more soft loans , mostly (resembling a grant) as follows:
$ 3 billion loan from the World Bank and 3. $ 5 billion loan from the Islamic development Bank, and $ 4.2 billion in soft loans from the Group of seven leading industrial countries , including the US loan, as well as $ 4.6 billion resulting from the postponement of compensation for the Kuwait war, in addition to the credit facilities of the Fund and referred to above the (5.3) billion dollars. requirements Stand -by Agreement ( a) requirements or prior business First: the Ministry of Finance to the Council of Ministers (quarterly) the details of the implementation of the budget year in 2016 and according to the new estimates , which came out of the Convention and that put a ceiling Anfakie annually at $ 90 trillion dinars instead of 103 trillions Danar.aa reduction of 13 trillion Danar.ma show that he did not prejudice the salaries absolutely no social expenditures (ration card , social welfare and the displaced, health and education). Second , subjecting senior state officials allocations to the annual tax settling accounts on income (except for marital allocations and children) starting second – class upwards. With the exception of the armed forces. Third , Mr. Federal Minister of Finance provide guidance to units of exchange all to comply with the plans of the new spending. ( B ) reference requirements First: is modifying the following laws: the National Commission for the integrity of the law / in accordance with the United Nations Convention Against Corruption. Iraqi Central Bank Law / according to the requirements of internal audit and preventive controls adopted in the audit evidence the IMF Ata.okzlk approval system to combat money laundering provided by the central bank based on the fight against money laundering , which was enacted in Act 2015. Law financial management / according to observations and corrections World Bank and the international Monetary Fund In order to maximize financial government transparency and raise the level of financial performance of the government. Second , subjecting salaries, pensions and benefits projects (contractors and suppliers) pre-audit of the Federal Office of financial supervision in order to address any funds paid unfairly. Third: external auditing firm (Handles on according to standards international auditing) an audit of both: sovereign debt is internal and external, and the assets of the Iraqi Central Bank of Iraq , domestic and foreign, and the expense of the oil receipts that followed the development Fund for Iraq and called 300/600. conclusion: provides financial ministers and planning by Profession disclosure arrears for dues all either salaries or retirements or projects if the move for more than three months from the date of the delay.
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