Hafiz: Required sound management to overcome the financial crisis

5/30/2016 0:00

BAGHDAD Shokran Fatlawi

Discussed the economic seminar organized by the progress of policy development institute on the IMF loan to Iraq, and to clarify misunderstandings among different circles about it details, it came during a seminar organized by the progress of the Development Policy Institute in the presence of a financial advisor to the prime minister and a group of finance and economy experts.

And initiated the seminar titled «The role of foreign loans in resolving the financial crisis» and attended the »morning» word to the director of the institute, Dr. Mehdi al-Hafez said through which the country faces a financial are conditions described Balassabp, pointing to the need for sound management of real and review the political, financial management, pointing out that the country in its current state it needs to make the right decisions based on sound management, according to the standards of corporate governance.
International loan details

For his part, Economic Adviser to the Prime Minister Dr. occur.

The appearance of Mohammed Saleh international loan details, saying that the relationship began with the World Bank and the International Monetary Fund in 2004, and that Iraq is a founding member of the bank's international fund since 1944, adding that that relationship foundered in 1977 after the former regime had decided not to provide the Fund's statements on the economy Iraqi.

He noted that the relations returned with the two organizations to normal after the fall of the regime in 2003, pointing out that these relations organized by the UN Security Council, which committed Iraq positively engages with the International Monetary Fund and the World Bank in order to reach the settlement of foreign debt through the agreement «Paris Club», which is an order binding decision and Iraq is not an option for the fact that the stability of the latter is part of the regional and international economic stability.

The «Paris Club» an informal group consisting of Mmoliyn finance officials from 20 countries of the largest economies in the world, offering financial services instead of declaring bankruptcy or debt relief cut interest them, and cancel the debt of highly indebted countries.

Saleh added «World Bank» request from Iraq to prepare detailed breakdown of the economic its potential and infinite money and funds available to the state institutions, as well as knowledge of dues Contractors details accompanying the performance of the Ministry of Finance and re bank restructuring Rafidain and Rasheed governance and the establishment of the company to guarantee deposits and ensuring social welfare and the ration card and displaced communities.

Net exchange real

He hinted that the IMF and World Bank deal size distress at more than $ 50 billion for the period from 2016 to 2019, after an evaluation process by the Fund and the World Bank, which completed the Iraq mission steps, including, explaining that access to international loan easily not taken but after taking a series of measures, including access by the Fund on the net real exchange for Iraq during the 2015.

He noted that the fund after the follow-up to the exchange discovered Salaries exaggeration as well as inflation and other passages, prompting the Fund and the World Bank to demand from Iraq, including the oil price of $ 35 instead of 45 and the export of 3.6 million barrels per day, bringing the deficit to $ 11 billion, pointing out he later deleted several paragraphs remaining $ 6 billion a year fund and the bank Internationals take care reimbursed.

Saleh clarifications and concluded on the loan, that the agreement obliges Iraq to issue a law of financial management, as well as the introduction of the Integrity Commission as an active player in the independent follow-up process and adopt a document of the United Nations anti-corruption, accompanied by an amendment of the Central Bank Act restricts the Ministry of Finance of new foundations and subdue external and internal debt in the country to audit as the domestic public debt amounted to 37 trillion dinars.

It should be noted that the IMF agreement with the federal government in the absence of any clause referring to allocate a portion of the Kurdistan region, where the provincial government took the initiative to subdue its oil exports to a foreign auditor for submission of the federal government, according to an economic advisor to the Prime Minister.


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