World Bank: Launch loan in Iraq next July
Let loose during 35 years at an interest rate of 1.5%
The World Bank announced on Wednesday that he would give a loan to Iraq repaid over 35 years at an interest rate of up to 1.5% expected that the loan will contribute to assist him in the current fiscal stayed with him, among the loan will be launched by next July.
He said the World Bank for the Middle East adviser and Asia charity Shban, The World Bank seeks to help Iraq in its current crisis, which caused a great loss to him and expressed his hope that the bank provides loans that will be of great financial and economic benefit.
He added that the bank is considering providing a loan for Iraq is repaid during 35 years with five additional permit-year interest rate of up to 1.5% only making it one of the soft loans in terms of the conditions and facilities compared to what provided by banks and private institutions.
He pointed out that «the loan will be devoted to the reconstruction and provision of services to the liberated areas and encourage investors to work in Iraq after the availability of those loans», expected to «be the launch of this loan By July and the next two, father ».
Shban confirmed that the loan would Iraq help in crossing its financial crisis this year the next two years are can be played by and recover in record time.
The International Monetary Fund revealed that Iraq's request for financial assistance from him and that he may be agreed on a loan of $ 800 million in a matter of weeks.
He said Masood Ahmed Director of the Middle East and Central Asia Department of the Fund that «the committees will work in this regard in the coming weeks and we hope to reach an agreement relatively soon».
may contribute to the IMF loan in relieving stress and helps The Iraqi government on funding from other sources measure by enhancing investor confidence.
repeatedly asserted Baghdad in the past few days that it intends bond issue worth $ 5 billion, to be the first international version 9 years ago.
financial situation of Iraq and strongly worsened by the collapse of oil prices since last year, as well as the high cost of the war against al-Daash. The government projected a deficit of about $ 25 billion this year in budget sizes up to about $ 102 billion.
He guessed Ahmed to be providing the loan through rapid funding mechanism and to be «a relatively small (about 800 million dollars)».
and established the IMF rapid funding mechanism to provide urgent financial assistance and advice on the economic policies of the Member States that need circumscription urgent aid to adjust the balance of payments. According to the website of the IMF loan is repayable submitted by the rapid funding mechanism over a period of between 40 and 60 months.
The paving the loan is the way to get Iraq on larger loans from the fund when needed package, but such loans may require greater commitments on economic policies adopted.
In the week last Finance Minister Hoshyar Zebari said Baghdad will seek to obtain sovereign credit rating to facilitate the issuance of bonds, and the government is taking measures, including a bond offering in the local currency to banks and the imposition of taxes on some consumer goods or cut public sector wages.
Ahmed said that «the Iraqi government is fully aware that it faces a problem large and it is committed to finding a solution within the constraints they face. »
[You must be registered and logged in to see this link.]