Experts: borrowing from the International Monetary Fund increases the economic efficiency of the country
Experts: borrowing from the International Monetary Fund increases the economic efficiency of the country
07/05/2015 (00:01 pm)
Baghdad / al-Suhail Ahmed
Economists stressed that the borrowing from the IMF would impose on Iraq the commitment of reform and development programs in the economic side, and as pointed out that this borrowing will increase the economic efficiency of Iraq, indicated that Iraq would be obliged to provide high standards of transparency and the preparation of budgets in a scientific and sophisticated.
The economist said Maytham coffee in an interview for the “long” that “part of the solution to the budget deficit problems is to resort to borrowing from the funds and banks, international federations, and it is one of the corridors that will restore Iraq to the international community economically and not necessarily expect Iraq in financial burdens,” he said that “the Fund concessional loans and long-term and comes with a package of economic reforms.”
He noted that “over the past years and after that ended Iraq’s agreement with the Fund have not been able to control the variables of the Iraqi economy, such as increasing inflation and rates of disability and not Iraq is unable to promotion of the private sector and the multiplicity of sources revenue, “noting that” there are political and adequate reasons behind it, but no matter which part we could not stay on the tax farming reforms Fund. ”
He continued by saying that “what has enabled Iraq to escape from the grip of Fund conditions previously, is that the financial constraint was open in the government period Previous, and low global oil prices returned usefulness of partial to adjust the Iraqi economy, “pointing out that” borrowing bring Iraq back to the financial Adjustment mode according to accredited to the International Monetary Fund standards. ”
He pointed to the coffee that “oil countries have areas to escape the laws and reforms of the International Monetary Fund , because those countries do not need to loans as a result of economies rentier large financial potential. ”
He noted that “the IMF imposes on Iraq to reduce government expenditures and increase revenues, so this borrowing is input reformer to reduce the role of the state, and when increasing role of the state is increasing the deficit and increased expenses and thus it would reduce its role to give a greater role to the private sector. ” He pointed out that “the very loans are to address the deficit, but will link Iraq’s obligations it fulfilled.”
He added Laibi “The International Monetary Fund warned Iraq in 2013 than there would be in deficit and bankruptcy was achieved because Iraq did not abide by those reforms,” noting that “reforms Fund long-term and subject to Iraq with the obligations of economic and progressive laws to reform the internal economy. ”
On the possibility of availability of financial liquidity to Iraq in the current period, and coffee explained that “the solutions put forward short-term and rely heavily on the hope of rising global oil prices and this Murad will not be achieved over the current year, nor the possibility to provide liquidity in the current period where there is still pressure for the expenses. ”
He expressed the hope that “oil prices do not go up to what it was in the previous year, because of economic reform requires the search for alternative sources of revenue and control government spending,” adding that “the modernization of the private sector depends on adjust government spending. ”
He noted that “at the International Monetary Fund a lot of reform programs, including transparency and reform of budget management and clauses of recording revenue and public expenditure and the need to be expenditure estimates close to reality by presenting final accounts.”
He concluded his speech by saying, “It’s not just loans It is to provide advice and prepare policies and development programs for the management of resources and methods of budgeting in a scientific talk. ”
so said economic expert on behalf of Antoine “The IMF does not give loans easily only after an economic study of the reality of the country and how much he needs to borrow, and the Fund’s integrated binders for economic situation of Iraq, “adding that” the requirement of the fund set up economic reforms is so do not go the money in vain. ”
He added Antoine in his speech for the “long” that “the Fund required to Iraq lend the $ 800 million to complete the stalled work projects, were developed this condition so as not to waste money, especially that Iraq is suffering from a huge waste of money as a result of financial and administrative corruption. ”
He noted Antoine that “the Fund asks reforms of the Iraqi government, especially in the field of organizing the accounts and operations of exchange because this lending semi-free” noting that “the return on those loans will be positive on the country, especially in the aspects of financial control and adjust government spending. ”
He continued, saying that “the fund will continue watching the style and process of exchange leads until the result was given for it, because Iraq is suffering from chaos in the financial and economic file management.” Noting that “the weak follow-up by the financial authorities and the House of Representatives and the Ministry of Planning has led to a lot of investment and productivity projects crashes.”
He noted that “follow-up and control process is essential to limit the exchange absurd and prevent financial and administrative corruption and the abolition of phantom projects that filled the previous budgets,” pointing out that ” We have a cumulative 9027 precedent for years has been done with more than 500 projects. ”
He pointed Antoine that “borrowing will make the Fund imposed on Iraq prepare scientific budgets and control because there are flaws in the Iraqi budget,” calling them “balance sheets items are not programs and strategies.”
said a senior official in the The International Monetary Fund yesterday Tuesday that Iraq’s request for financial assistance from the Fund and it may be agreed to loan $ 800 million in a matter of weeks.
He said Masood Ahmed Director of the Middle East and Central Asia Department at the International Monetary Fund that “the committees in the fund will work in this context, in the coming weeks and consider a deal soon. ”
He added that “it is likely to provide the loan rapid funding mechanism will be relatively small and is estimated at approximately 800 million dollars.”
According to the rapid loan laws in the International Monetary Fund, the repayment will be over a period of between 40-60 months .
The Iraqi government has announced that it was issuing financial bonds worth 5 trillion dollars in cooperation with the Dutch, German Bank and the City, US Bank, and this is the international version first financial bonds in nine years to finance the deficit in the federal budget.
The Finance Minister Hoshyar Zebari had announced ( May 2, 2015) that Iraq sought to obtain the sovereign rating and communicate with the credit rating agencies in preparation for the issuance of financial bonds worth $ 5 billion.
Indeed, Iraq has a bad financial are conditions due to the large drop in oil prices as well as security problems due to battles with al “Daash”, estimated In the federal budget deficit by 25 billion dollars and 25% out of the budget planned $ 100 billion.
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