Iraq: recruitment freeze and the imposition of fees and levies in the next three years

Iraq: recruitment freeze and the imposition of fees and levies in the next three years

07/17/2016

BAGHDAD / JD / .. in light of the financial crisis experienced by the country as a result of lower oil prices, the federal government began to resort to external borrowing to bridge the shortfall in the general budget, where the IMF agreed to lend Iraq more than $ 16 billion under the terms required to Iraqi government adhered to, including a recruitment freeze and the imposition of duties and taxes, in addition to obtaining the levies private sector services to increase revenue, as well as other conditions and obligations.
It seems that the Iraqi government would agree to all the international conditions in order to get the financial loan, which differed by specialists in economic affairs, where some of it sees as an ideal loan and Iraq need him and the other has warned of taking this loan being would entail obligations and conditions and makes fiscal policy in Iraq outside government control, but, however, the IMF and the World Bank.
He says economist Muhammad Ali Durgham told / KD / that “the international loan amounting to thirteen billion dollars, is the highest awarded the International Monetary Fund for Iraq a loan to contribute to the reduction of the financial crisis.”
He pointed out that “this loan represents the last chance for Iraq to get large sums of money, because the country will face next year, a major financial crisis, and that the ports at which the government borrows them from home and abroad have become narrow outlets.”
For his part, an expert in financial matters on behalf of Tamimi warned access to the international loan, as will impose conditions and obligations on Iraq that must be adhered to in the event will be undone Iraq to penalties and fines, stressing that the most incapacitating conditions and the government is unable to implement them.
He said al-Tamimi told / KD / that there are other doors were government could resort to it rather than external borrowing, which will saddle the Iraqi economy in the future, noting that the economic program put forward by the prime minister so far not enabled When activated we be able to create new revenue and maximize resources.
As a member of the Finance Committee Magda Tamimi, it has confirmed that Iraq Siltozm International Monetary conditions, including recruitment freeze for three years to come as well as the imposition of fees and taxes.
Said al-Tamimi told / KD / The financial crisis that hit the country because of low oil prices, the Iraqi government has made an urgent need loans to bridge the shortfall in the budget, but this does not mean that we make the country dependent on loans from the activation of other vital sectors, stressing that Iraq has large internal and external debt still owes and is unable to repay.
The Iraqi government said in a note published by the International Monetary Fund, it “will be applied to freeze the recruitment policy in most sectors and pension reform (salaries) and charging for electricity in order to increase revenues.”
She added that “economic activity for Iraq shrank by 2.4 percent in 2015,” expected “to grow by 10.3 percent in the current year.”
The government, that “Iraq will cut spending in the non-oil budget in 2016 by 15 percent and Sestdan billions of dollars in light of falling oil prices more than expected.”
The government said in a letter to the sender of the International Monetary Fund in June to apply for a loan under the demand that it “now expects to reduce the deficit to $ 4.9 billion in 2016 and then to $ 13.2 billion during the period 2017-2019.”
She noted that “other sources of funding to fill this year’s deficit may include loans worth more than two billion dollars from the World Bank participate in the guaranteed France, Britain, Canada and loans worth more than three billion dollars from the United States and other lenders.”
The government also said the International Monetary Fund, according to the note that he is committed to “pay-out” of receivables overdue for international oil companies by the end of 2016, and estimated the arrears in the past year, billions of dollars.
The IMF agreed recently on loan demand, allowing Iraq to get first payment of $ 1.9 billion.
The government plans to withdraw from its foreign exchange reserves over the next few years to help support this funding, and expects that reserves fall to $ 31.5 billion in 2020 from $ 59 billion in October Almadi.anthy 8 /

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