The World Bank determines the size of its financial portfolio in Iraq and unveils a global initiative to recover smuggled funds


395 Policy 01/2021/31 22:38

Baghdad Today – Baghdad

Today, Sunday, the World Bank confirmed that changing the exchange rate gives the state the ability to increase its revenues and confront import from abroad, and while noting that its financial portfolio in Iraq currently amounts to two billion dollars, it revealed a global initiative that the World Bank is working on to recover money smuggled from countries.

The Special Representative of the World Bank Mission in Iraq, Ramzi Numan, said in an interview with the Iraqi News Agency (INA), which followed it (Baghdad Today), that “the partnership relationship between the World Bank and Iraq is very close and is based on years of joint work, pointing out that” Iraq has a position Very important at the Arab and global level, and that the World Bank was next to Iraq in the various stages of stability and peace, or in the stages that were subjected to attacks or change in economic conditions, which led to difficult repercussions on the Iraqi government and people, and actual work began with Iraq, I think in the two years 2006 And 2007 through a group of projects. ”

He added that “the World Bank’s portfolio in Iraq currently amounts to two billion dollars and that these loans were signed about two or three years ago,” noting that “the main pillar in it is a loan to rebuild the liberated areas and the result of the request came after the beginning of the first phase of liberation, that is, the liberation of Salah Governorate.” The debt was then supplemented with an additional amount after liberating the rest of the governorates.

And that “this current portfolio in Iraq includes projects under implementation and projects or loans due and that the World Bank is working to implement projects associated with them.”

He indicated that “the World Bank has teams working on the issue of cultural heritage and has a simple project in Mosul that may start soon,” noting that “the World Bank was at some stage looking forward to rebuilding Mosul, and I personally when the issue was raised I was continuing to develop a comprehensive plan for the reconstruction of the city.” My view was crystallized in that a city like Mosul is a global heritage, so why should Iraq not present an ideal reconstruction project as an international competition to which the most important companies and universities will be nominated to lay down a guideline for its reconstruction, even if it is in the long term.

Loan size

Numan explained that “the World Bank loans are aimed at a large reconstruction project, accompanied by a project in the liberated areas that targets the social sector,” noting that “the World Bank has allocated 400 million dollars for reconstruction projects, divided between two projects, the first with 150 million countries and the other project at 250 million dollars.” The World Bank also has a project with the Baghdad Municipality for Water and Sanitation, amounting to nearly $ 200 million, and a project in the electricity sector in Basra Governorate, with $ 200 million.

He continued, “The World Bank has a social and economic project that works on all of Iraq, and it is heading to local communities called” the Social Fund for Development) with a value of $ 300 million. There are other projects, including planning, financial management and financial management organization, and the World Bank goes towards reconstruction projects, human development projects and capital capacity development. Al-Bashir also goes to economic reform projects. ”

He explained that “the World Bank seeks to put the project that is being proposed in a long strategic framework with a specific vision that opens up opportunities for future employment and investment spaces, pointing out that” the World Bank aspires to convert any project into a larger block and that taking advantage of this opportunity is the responsibility of the government. ”

exchange rate

He pointed out that “changing the exchange rate aims to give the state the ability to increase its revenues, especially since the sale of oil in hard currency and converting it into the reality of the Iraqi dinar gives it a financial mass that allows it to actually increase revenues and reduce the deficit,” noting that “changing the exchange rate may allow import from Abroad because the domestic product becomes cheaper than what is imported from neighboring countries. ”

He explained that “the strategic objective of changing the exchange rate is to work to strengthen the local product and local industries to be able to face the external product, reinforced by measures to protect the product.”

He stressed “the need to address the increase in prices and the seriousness of inflation, and focus on projects that actually allow facing the social distress of the poor.”

He continued that “the idea of raising the price of the dollar is an international policy shared by the Ministry of Finance, the Ministry of Planning and the Iraqi government, especially the International Monetary Fund,” explaining that “Iraq is now in the plight of the financial deficit and it has nothing but borrowing, either internally or externally,” indicating that “Internal borrowing threatens the reserves of the central bank, just as using it to fill the deficit removes the possibility of investment with productive opportunities that allow the development of the private sector, while external borrowing has its components and conditions that are based on debt sustainability, subsequent repayment capabilities and financial and monetary stability. This financial engineering must be looked at in an integrated manner.” From which one can consider lowering the currency rate. ”

The World Bank determines the size of its financial portfolio in Iraq and unveils a global initiative to recover smuggled funds

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