IMF requires the imposition of strict controls on the doors of the loan disbursement
IMF requires the imposition of strict controls on the doors of the loan disbursement
Mon, May 23, 2016 09:19
Baghdad / follow Baghdadi News / … the IMF imposed in the agreement concluded by Iraq during the past two days, to impose strict controls on the doors of disbursement of the loan, and full salary and allowances subordinate to the senior state employees, and job grading supreme, and private, to income tax. While not include conditions permit stamped on the ration cards, nor salaries of social protection network, and not the government provided subsidies for displaced people in.
According to the Convention, which provides for the granting Iraq a loan preliminary exceed $ 5 billion, according to a source familiar with the Ministry of Finance, which included general details of this deal is not the first, was preceded by two agreements: one in 2005, and the settlement of Iraq’s obligations with creditors in the Paris Club framework and the other in 2008, to address the repercussions of the sharp decline in oil prices at the time. And the value of the loan is 5.4 billion (billion dollars). N the interest on this loan does not exceed 1.5% per annum.
It is assumed that this loan helps to strengthen the creditworthiness of Iraq, and raise the credit rating, the building ‘financial | umbrella Pave the way for the establishment of the seven major industrialized nations (G7) to provide credit facilities for Iraq amounts could reach more than $ 15 billion. Among these facilities to help Iraq to ease the burden of repayment obligations with the Paris Club, as well as those relating to the payment of international financial obligations. Add to receiving additional financial support from the World Bank, and other countries.
And that this loan will help reduce the ‘extra’ deficit in the state budget, the impact of the drop in oil prices, and to follow the procedures help reduce the deficit ‘total (ie the total deficit) in the state budget.
And came within the requirements, the Iraqi government to take necessary measures to reduce expenditure in the state budget for fiscal year 2016, and take measures to settle the dues of oil companies, and do not let Petrakmh, full salary and allowances subordinate to the senior state employees, and job grading Supreme, private, tax income. These range from tax (according to different income segments) between 7.5% to 15% of the total salary and allowances. As for the lower grades, they impose income tax on only the nominal salary, without provisions, and rehabilitation (or restructuring) self-funded public companies, and work hard to raise the efficiency and performance of the financial regulatory agencies in the country, at all levels. And impose strict controls on the doors of disposition of this loan.
And it imposed agreement controls for the collection of public service wages, to take into account the living conditions of low-income people, and will not be raised fuels prices, because oil prices are currently low, and because existing prices are rewarding for the government, and there is no requirement laid off workers in the public sector . There are no conditions permit stamped on the ration cards, nor salaries of social protection network, and not government subsidies provided to the displaced.
From the above, according to the Convention, the social costs are difficult to this Agreement, are those associated with the repercussions of negative to cut public spending, in the absence of almost entirely of institutions capable of allocating available the best possible ways and means of economic resources, and the lack of the ability to pursue a management efficient public money, and also those costs associated with the taxation of the salaries of all employees.
As for how to dispose of the amount of the loan, check spent on the purposes for which has been allocated for it originally, and achieve the main objectives of it, the burden of implementation and follow-up in question, it will be the responsibility of the international parties involved and supportive of this agreement (basic degree), and not the responsibility of the Iraqi government and Hdha.anthy 21 / T
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