Economic parliamentary: many positive aspects of the World Bank loan

6/6/2016 0:00

  BAGHDAD Shaima Rashid
Economic Commission representative said that the World Bank, which would give Iraq up to 5 billion and $ 400 million as a down payment first very positive loan, noting that some of the conditions difficult and could harm the citizens, as pointed out that the House will intervene to resolve this matter in the event of loan reached him.

She explained committee member Nora Albjara that taxes will be imposed on the staff when the government receive a World Bank loan, the loan afterthought that several positive aspects.

She Albjara, in an interview with «morning»: The international loan of up to about $ 16 billion, the first batch of it up to 5 billion and $ 400 million would be, which is a provision of financial liquidity for the government, while the remainder of the loan will come in batches, indicating that fund international Monetary stipulated 27 requirement on Iraq to agree to give him a loan.

She Albjara that all the participating countries in the fund have the right to borrow from it when it is a financial or economic crisis, provided that they invest the money in development projects so that the state can repay the loan amount.

And it showed MP from the Union of Forces that all countries in the world when it is located in the financial the crisis, the governments of those countries are trying to ease private for employees and citizens taxes, noting that the House would not be allowed to impose new taxes on employees by making adjustments to some of the Fund's conditions, particularly prejudicial to the citizen even if the Iraqi government was in a financial crisis, which is the right of parliament to do in the event of loan she reached him.

And on the taxes that will be imposed, Albjara made it clear that it will impose an increase on income and payroll tax, and there is a condition that is reducing the high grades which is no objection from the second division and special grades that there will be a raise on the income tax, noting that the House of Representatives has not yet briefed on the loan and does not have any details and it is supposed to be for the respective committees in the parliament (financial and economic) view of the terms of the World Bank.

 In turn, she saw MP from the Economic Commission Najiba Najib borrowing a passive state, but the government with the situation experienced by forcing it.

She explained Najib, in an interview for »morning», that in view of the collapse of oil prices and the lack of revenue and increased state spending, both in the war with Daash or other, the government is forced to borrow from the International Monetary Fund.

Najib added that the interest rate on this loan ratio is 1.5 to three years according to the World Bank, the terms of which reduce operational expenses and direct payments of the loan to the sectors of education, health and displaced persons so that they can take advantage of the state loan

. Economists stressed that the international loan obtained by Iraq recently in need of a series of tough measures to be activated include reducing the operating budget, and most importantly reducing the bloated salaries of state employees and freeze or suspend dues Arab and foreign countries to Iraq, in addition to the country's need to properly manage the political and financial Melvin according standards of governance in the country. They pointed out that the domestic policy failures are the cause of the disastrous results that have arrived in Iraq.

The government is proactive measures to reduce the size of the budget by about 13 trillion Iraqi dinars by reducing the expected oil price of 45 to 40 dollars, especially with the expectations in the world oil markets further tremors.


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