IMF: Iraq preventive balances rose to $ 18 billion, but this is not enough to protect him
IMF: Iraq preventive balances rose to $ 18 billion, but this is not enough to protect him
Editor: BS, NK 23/03/2013 15:16
Term Press / Baghdad
International Monetary Fund said that funds preventive Development Fund for Iraq rose in 2012 to $ 18 billion, and pointed out that this increase came from the “oil revenues unexpected,” in calling the Iraqi government to end the control of banks owned by the State on the banking sector, He stressed the need for the Iraq strengthening public financial institutions to ensure efficiency and transparency in the use of oil revenues.
The Fund in a report issued in 03/21/2013 after the consultations held in Amman between a delegation of the Fund and the Iraqi delegation headed by VMware Planning Ali Shukri, and seen (long-Presse) it, “The funds preventive Development Fund for Iraq rose to 18 billion dollars with the end of the year 2012, “he added,” We welcome the achievement of this surplus in the general budget for 2012, which accounts for about 4% “of gross domestic product.”
He explained the fund that “this surplus is due mainly to achieve oil revenues exceeded expectations,” and called in this regard to the need to achieve a surplus in the budget of the year 2013 through the consistency of implementation of budget 2013, with the volume of funding available to allow formation of sufficient funds preventive Development Fund for Iraq to cope with the vagaries of world oil prices and keep economic balance. ”
He pointed Fund in its report to “an improvement in the financial sector”, but stressed that it is still “need to greater efforts by the central bank to revise the monetary policy tools and strengthen banking supervision, and accelerating the restructuring of the banking system”, praising the basic steps taken by Iraq finally to purify the balance sheet in the Rafidain and Rasheed bank in preparation for re Hiklthma and re Rsmmelthma “.
And called on the International Monetary Fund Central Bank of Iraq to “progressive measures towards liberalizing foreign exchange through auctions held by the Bank so as not to repeat disorders suffered by the financial market in the past year.”
UNFPA emphasized that “the establishment of a banking system nationalist requires abandoning the current model, which is controlled where weak banks state-owned, which has preferential treatment apart from private banks,” calling on Iraq to do to strengthen its financial institutions public to ensure efficiency and transparency in the use of oil revenues. ”
The International Monetary Fund forecast, to witness economic growth in Iraq during the current year 2013 increased by 9 percent due to the rapid growth of the definitive oil in the country, while calling the Iraqi government to focus on the private sectors other than oil to secure the balance of economic not be subject to production and fluctuations in oil prices globally.
The U.S. Agency for International Development predicted in (3 December 2012) that leads the Iraqi economy, the Arab countries within five years, stressing that Iraq possessed all the qualifications to be an economically strong state.
Iraq is trying for years to attract foreign capital to develop its economy in the fields of industry especially those related to oil and housing and oil and gas extraction, and to its need of funds for infrastructure development and reconstruction, but Mariqben contend that the lack of interest the state to the private sector and the absence of investment laws which guarantees for investors and the absence of Other laws are still obstacles to the development of the economy in the form required.
Iraq relies, which has the fourth largest oil reserves in the world, 95 percent of its annual budget on its oil exports and currently produces about two million and 900 thousand barrels per day, while issued up to two million and 200 thousand barrels per day.
The Iraqi parliament approved in October 2006, the Iraqi investment law which it was said at the time that he would open the doors to foreign investment, for providing a lot of facilities to foreign investors, but many foreign companies still hesitate because of fear of the security reality instability in Iraq, and as a result frequency investors to come has been amended law by the House of Representatives in October 13, 2009, and was the most important amendments to the law to give the right of the investor Iraqi and foreign ownership of land and property belonging to the state allowance determined in accordance special system.
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