Saleh: IMF loans will go to development projects

by day dreamer Tue 26 Jan 2016, 11:37 pm

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Saleh: IMF loans will go to development projects

by day dreamer Tue 26 Jan 2016, 11:37 pm

01/27/2016 (00:01 pm) -

[ltr] Saleh: IMF loans will go to development projects [/ltr]

[rtl] [/rtl] Baghdad / Zahraa Hamid

[ltr] He stressed the economic advisor to the prime minister, Haydar al-Abadi, on Tuesday, that Iraq has an agreement with the International Monetary Fund offers the possibility of obtaining long-term soft loans for the implementation of development projects, noting that the fund is among other conditions, government expenditures, and modified some procedures related policies economic, while counting economist that "the most important" of those loans is to know the amounts that will be obtained during the year 2016.
The Abadi, has expressed the hope during an interview on the sidelines of the World Economic Forum in Davos last week, Iraq to get loans worth up to seven billion dollars from the International Monetary Fund, at the time led the decline in oil prices left the government in desperate need of help Foreign finance costly war against (Daash).
He said the appearance of Mohammed Saleh, an economic advisor to the prime minister, in an interview to the (long-Presse), said that "Iraq consults constantly with the International Monetary Fund to get a crane to support the financial sustainability through soft loans," he returned that "the agreement itself is useful because it is an umbrella for Iraq give a signal to the international financial community to lend Iraq. "
Saleh added that "the cost of those loans is low and few benefits by about a year, and paid for a long time," noting that "Iraq has an agreement with the International Monetary Fund, spends his monitor the economic policy of the country."
He guessed adviser Abadi possibility of "turning the agreement with the Fund to a larger level, allows Iraq to obtain soft loans from the International Monetary Fund and the World Bank," stressing that the "loans if they were going to go for development projects, particularly energy and industries important to the lives of the Iraqi people."
Saleh said that "under the International Monetary Fund, among other conditions, the government has amended some of the expenses and procedures relating to economic policy," adding that "the government restricted their expenses mainly as a result of the crisis in the now."
On the other hand, counting economist Ahmed Rehn, said in an interview to the (long-Presse), that "seven or even ten billion dollars is not a large sum relative to Iraq's need of foreign exchange," noting that those "need related to the size of its imports of goods and services Foreign and obligations of , therefore, these amounts do not cover only a fraction of the shortage that hit the oil supplier. "
He Rehn expressed his belief that "the government will seek to borrow from international institutions and others to shore," stressing that "more importantly, how much will enter Iraq from the size of those loans during the current 2016, because their actions are usually long and not conducive only to receive a small percentage of them. "
Iraq had announced in (the 13th of January the current 2016), for the approval of the International Monetary Fund to finance the budget deficit through clouds of hard currency reserves, noting that it means reducing those reserves from $ 59 billion the end of October 2015 the past, to 43 billion during the current year.
The Finance Minister, Hoshyar Zebari, revealed in (the 25th of November 2015 the past), for borrowing Iraq billion and $ 200 million from the International Monetary Fund, stressing that the Fund "has no" conditions in this regard.
The House of Representatives approved by majority, in (the 16th of December 2015 the past), draft financial budget law for the current 2016 value in excess of 105 trillion dinars, and the deficit of more than 24 trillion dinars, is expected to be increased as a result of the continued decline in global oil prices.

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