06/06/2017 (00:01 pm) – Number of readings: 184 – Issue (3942)
Baghdad / Zahraa Al-Jassem
After the second review of consultations from the standby credit program signed between Iraq and the International Monetary Fund in the Jordanian capital Amman, a senior source said that the two sides had agreed to provide budget supplemental for the current year include contractors and farmers ‘ allocations recently paid, with the circulation of the federal budget indicators in 2018.
The second review consultations began last Thursday and lasted four days, and sought Iraq from which to obtain a loan of about $ 840 million, as part of a standby credit program signed between the two sides.
High – level , who preferred anonymity , the source said in an interview (range), that the consultations “ended with great success, and presented the results of the consultations of the Executive Board of the International Monetary Fund at its meeting to be held early next August,” He added that Iraq and the IMF international agreed during the consultations to provide budget supplementary to the year 2017, and include the agreed points of contractors and farmers recently paid bills issued by the Ministry of Finance and some other issues of allocations, as well as the circulation of the federal budget indicators in 2018, where the program concludes to reach the so – called fiscal adjustment in the face of Massaa The balance of payments due to oil revenue volatility and its impact on the federal budget, which requires maximizing the non – oil financial resources and reduce spending and deficit financing from the planned sources of internal and external , including parts of the IMF loan, as Iraq is expected to receive a share of $ 840 million in the month next August, out of the total fund of $ 5.3 billion loan.
He continues , the source said: The Fund defends the program Alastaqrara overall economy by giving priority loans and public spending to the so – called social spending which areas of education, health , social welfare and displaced persons, where the fund is keen on the subject of sustainability or carrying capacity of public debt, meaning ” the ability to pay it ” through maximizing revenue and control expenses and control, in order to stabilize the crossing of no crisis in public resources because of the oil crisis and the decline in oil revenues, as well as the Iraq war now being waged against terrorism costs.
And it corrects the source by saying that, the financial adjustment program adopted by the International Monetary Fund with Iraq and the targeting of non – oil revenues and control spending, all are ways to maintain the sustainability of reserves at the Central Bank of Iraq.
The financial advisor to Ebadi , the appearance of Mohammed Saleh, has explained in response to a question (range), on the importance of these talks, that Iraq is seeking to obtain a loan of about $ 840 million, as part of a standby credit program, for a period of 36 months starting from July 7, 2016, the soft loan of approximately the $ 5.3 billion, paid off over five years, as the program provides financial umbrella for Iraq has more than $ 15 billion, including soft loans from the World Bank and the Group of seven major industrialized countries, with other loans from funding programs Ktogel premiums compensation for the Kuwait war.
He chaired the IMF meetings with Iraq, Governor of the Central Bank of Iraq , Ali Ismail Keywords financial advisor to the prime minister the appearance of Mohammed Saleh, with the participation of a number of agents ministries and the President of the Office of Financial Supervision, while attended part of these consultations and for the first time, Deputy Director of the Office of the Prime Minister.
The agreement aims to re – balance public finance and external account to calculate and improve public financial management while protecting social spending for Iraq, according to an interview with a former head of the IMF mission (range) and between that Iraq can assume its debt if the Iraqi authorities carried out the agreed financial correction with the Fund under an agreement standby credit.