BAGHDAD – Anatolia: Put the IMF package of financial and economic reforms, which would conclude his visit in the middle of this week, after talks lasted nearly two weeks with officials in Baghdad.
Iraq suffers, like other oil-producing countries, the decline in financial revenue as a result of falling crude oil prices by 68 percent, and fighting al «Islamic state» in many cities, and that drained the treasury.
Abdul Hussein Al-Anbuge, Iraqi Prime Minister for Economic Affairs Adviser, on Thursday said that the conditions set by the International Monetary Fund to cope with the financial crisis in Iraq, which fall under the reforms that the government which seeks to reduce economic damage.
He Anbuge «There are not tough conditions imposed on Iraq by the International Monetary Fund in exchange for cash loans. What put the IMF is part of the reforms, but it may have an impact socially unacceptable in the long proximity », adding that« to reduce the damage to be forced to accept certain conditions to face the biggest problem ».
And head of the International Monetary Fund to give Iraq a financial loan demand by June next, which will allow Baghdad to $ 15 billion in international aid over the next three years, according to a statement of Christian Gooch head of the IMF mission in Iraq last Tuesday. The Iraqi official said that «some government institutions began to increase fees, such as the Ministry of Health, which raised the prices of medical services, and the secretariat of Baghdad, which raised the prices of municipal services.
Currently it operates several government committees to determine the possibility of selling some state property such as land, machinery and real estate, residential complexes, which are steps aimed at tackling the financial crisis.
Baghdad agreed in November last year to place the financial and economic policy to control the International Monetary Fund for the years 2015-2016 after the aggravation of the financial crisis because of low oil prices in world markets.
The International Monetary Fund says that the biggest challenge before the agreement on the granting of Baghdad loans worth $ 15 billion will be gradually cut spending to match revenues, allowing the country’s debt to be stabilized by 2020, when 75 percent of GDP.
Iraqi finance officials believe that some of the conditions the International Monetary Fund can not be applied at the current stage, especially those that can strongly affect the level of citizens’ ploy
. He said Sirhan Ahmed, member of the Finance Committee in the Iraqi parliament that among the conditions set by the IMF «raise subsidies for fuel (fuel), and stop the ration card project, and this can not be applied and approved, because it is linked to a wide array of the Iraqi people».
He said Ahmed that «the government will face a problem in raising taxes or creating new doors for the fees, because the law does not give it to issue decrees to raise taxes contrary to what is stipulated in the federal budget for the 2016 law validity», adding that «any increase in taxes the government must go back to parliament for approval. »