IMF gives loans to Iraq impossible conditions and specialists rule out the implementation

05/21/2016

BAGHDAD / JD / .. After reaching the Iraqi delegation, headed by Finance Minister Hoshyar Zebari to an agreement with the International Monetary Fund to grant Iraq loans of about $ 16 billion over the next three years to meet the government's deficit and invest that money in maximizing the financial resources of the country, but it would give according to the terms described by some specialists in the financial and economic affairs Baltjeezah being required Iraq to reduce the 2016 budget expenditure of $ 13 billion.

And it began negotiations with the IMF after warnings by financial experts from the government's inability to pay the salaries of about 7 million workers and retirees during 2016 due to the general budget of the country's deficit.

In other words financial expert Hamid al-Moussawi, said the International Monetary Fund took advantage of Iraq's financial situation embarrassing and began to impose impossible conditions in return for granting Iraq financial loan to bridge the shortfall in the federal budget, and under these conditions reduce the current year's budget expenditure of $ 13 billion.

He said al-Moussawi told / KD / that in the light of the suffering of the country at the moment of the disruption to the work of the House of Representatives and even the Council of Ministers because of demonstrations, protests and chaos, it is difficult to Iraq is unable to amend the 2016 budget, as well as the budget originally saw a lot of pressure on expenses, it is where it comes from Are the cuts mentioned in the deduction of salaries of employees or retirees or covered by social protection? Noting that one of the conditions also reduce the security and defense allocations Does not the army and police salaries deducted ??.

He explained that one of the conditions is also not to go loan funds to operating expenses, but to projects concerning the education and health sectors, and so on, it is difficult to implement those requirements and therefore can not be for Iraq to get the loan amount in full, which amounts to $ 16 billion, including $ 3 billion for the Kurdistan region.

For his part, confirmed member of the Finance Committee MP Sarhan, Ahmad, Iraq's ability to pay future loan amount in case of Iraq it, because the interest earnings where a few do not exceed 1%, in addition to that there Musharat indicate the oil will increase the price gradually over the coming years, which Iraq could repay its foreign debt.

Said Ahmed told / KD / that Iraq today is in dire need of international loans being live a severe financial crisis, noting that the 2016 budget when it approved 105 trillion dinars as expenditure and 81 trillion dinars revenues, bringing to the difference 24 trillion dinars, which is the real budget deficit, then put vertebrae can pay off the deficit through borrowing and loans from international banks and the international Monetary Fund and the Islamic banks.

He added that Iraq would receive $ 16 billion from the International Monetary Fund, not $ 15 billion over the next three years are awarded in the form of payments, where Iraq will receive this year a loan of $ 7 billion.

He explained that those qualified to reduce the current year's budget expenses of the loans.

For his part, ruled out of the Finance Committee member Jabbar Abdul Khaliq breakthrough financial crisis when Iraq for the international loan, noting that although Iraq is an urgent need for this loan, but he does not have a solution to the crisis experienced by the country.

Said Abdul Khaliq told / KD / The House of Representatives if the meetings will host the work of negotiating with the IMF team to know the value of the loan and its mechanisms and details and conditions imposed by the IMF in return him to Iraq Alkarod.anthy / 8 /