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Borrow more than $ 7.5 billion in economic decision-Iraqi .. For Sale: Open auction
11-01-2016 10:55 PMAre free –
The government agreed to external borrowing proposal after hesitation lasted several months, so as to widening the fiscal deficit gap for the 2016 budget as a result of falling oil prices, and a widening base of corruption, and the insistence of the political blocs to disrupt the imposition of taxes on merchants. The planned fiscal deficit in the current year budget gap totaled $ 20 billion, and Siqtrd Iraq from foreign banks and the International Monetary Fund and the World Bank more than $ 7.5 billion. While the effects of external borrowing the former Iraqi regime still, Canvas so far in front of Iraqis since the eighties of the last century.
Thus open auction, where the imposition of lenders numerous conditions on Iraq, including: high interest rate of 12%, stop recruitment in the public sector for three years, removal of subsidies on health, education and fuel sectors, and the elimination of the ration card system that provides citizens with flour, sugar and oil per month.
President of the National Business Council, David Abdul Zayer, said that ‘external borrowing threatens Iraq’s economic security, if income by borrowing in the current situation will go in the tunnel will not come out of it’, and expected to ‘hit bankruptcy Iraq to become undesirable to deal with him for his inability to economy management’ .
Zayer called on lenders to ‘study Iraq’s economy by lending’, stressing that ‘spending oil money on operating expenses that have brought the country to the current crisis, it must be spent on investment projects, because they are the people’s money. “
A professor of economics at the University of Mustansiriya, Maitham coffee, that ‘the persistence of oil prices at low levels mean that budget revenues could drop to less than they are now, and then will increase the deficit, and that the burden on the budget and on the economy can be increased and a financial hardship that levels arrange large negative obligations on the economy ‘.
He cautioned that ‘financial obligations Stkplh restrictions repayment of long-term anathema to benefit from the oil revenues because of the increasing benefits of public debt in Alanvaqa side of the budget, which will inevitably affect the opportunity to invest those funds in the investment and development aspects’.
Iraqi state and demanded B’aalan condition of the financial early warning, and to put the government and the legislature and the public and all the other independent bodies in the circle of this danger, in order to formulate a real and long-term visions to save the economy, by stimulating the inherent powers and increase the productivity of public expenditure and capital human and stimulate the private sector forces, the final stop government interventions and increasing the role of the state. Without that, it is expected that all infected system Palantefa paralysis’.
He said the government economic adviser, Abdul Hussein Al-Anbuge, that ‘the World Bank Okarzna billion dollars in 2016 and Sakarzna in 2017 will be spent on the repair of the productive sectors’.
While the spokesman for the Ministry of Planning Abdul-Zahra al-Hindawi, that ‘Iraq will get the loans do not pose a threat to the economy’, and pointed out that the ‘2016 budget is able to provide operational expenses due to the presence of four million employees and three million displaced people in addition to the reinforcement’, pointing to that ‘external borrowing one of the solutions to bridge the fiscal deficit, and this does not mean mortgaging the economy to foreign countries’.
A member of the parliamentary finance committee, Haitham al-Jubouri, the ‘external borrowing was approved by the cabinet in which the share of the political blocs. “ He explained that “after five years, we will resort to soft loans from the International Monetary Fund and some neighboring countries, which makes us offer sovereign guarantees Strahan Iraq economy of these countries.”
Brett McGurk 
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