Economic Adviser to the Prime Minister: any country linked to terrorism, we must remove the debt and repayment will be the year 2022 bulk
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Last update 19:54, 12 March 17 38800
Greece's financial crisis and the economic crises of the day Jordan feel the Iraqi citizen who the Government loans abounded and many fear, d look good economic Adviser Mohamed Premier Abadi talked about Iraqi debt in detail in this dialogue, and pointed to the current debt and previous debt accumulations and their benefits and how to repay warning 2022, which will be in the larger payment by its description.
"Tomorrow," have had this conversation with Dr Mohamed Saleh appearance:
• Standby agreement between Iraq and credit the IMF uncertain, how will I be paid?
What are the repayment period?
-It's no secret that the credit and readiness program known as SPI is the third Iraq enters program with the International Monetary Fund since the Paris Club agreement and is not first as imagined by some,
this program to fund its member countries when going through a financial crisis and Iraq is going through a financial crisis since oil prices fall mid-2014, as you know, there has been a deterioration in the balance of payments to the federal budget reflected Iraqi,
then enter this Monetary Fund credit arrangements by providing a loan to Iraq but that The loan is not the only loan but it is generating an umbrella to support Iraq, is the introduction of significant financial dark,
this umbrella of the IMF as about 20 billion dollars, including the postponement of war reparations Kuwait 6.4 billion dollars, a loan fund itself is $3.5 billion paid batches punctuated by 13 revision with the box of 6 major revision and rest after each subsidiary audits review the Fund is called a batch of loan payments, the agreement was approved on 7-7-2016 and deliver an impulse Billion and two hundred and fifty million dollars,
this year there is a second review is currently in Oman by a professional team there is a political team headed by the Minister of Finance Dr Razak agency alessa and the Governor of the Central Bank on the relationship and also I will be with them and expect to launch the Fund after this review the loan paid approximately $840 million.
• Doctor to understand we haven't received loan something before 7-7-2016?
-Before authentication Iraq received what is known as a means of rapid funding to help from the IMF, one billion two hundred million dollars and had nothing to do with the loan came due to difficult conditions at that time and synchronization conflict with ISIS and the collapse of oil prices,
in fact, grant peninsula is later reimbursed and long-term arrangements, back to the subject of the loan, the loan received over three years to support load balancing, loan interest is 1.5% per year for each batch of the loan there is a grace period by two years and the period of 3 years, Iraq received 250% of its share in the International Monetary Fund, Iraq's share of the Fund of one billion eight hundred and sixty-six million dollar loan is low.
• What about standby credit agreement article IV concerning the assessment of the economic situation in Iraq?
What is your perception of the nature of the evaluation report to be issued?
-IMF member States assess placed every two years, with a review of the existing loan fund Iraqi economic situation is assessed and prospects, and the fourth part of article reviews, Iraq's security crisis was on the way, too after streak to organize terrorist ISIS financial crisis there better,
we as financial experts don't much optimistic but cautiously, oil that sold Iraq during the last three months was a barrel of approximately fifty dollars while its price in balancing 2017 was Anticipated that sold for $42,
that reduces the deficit and improve the balance of payments position,
and if oil prices remained at this rate, the projected shortfall is one twenty trillion Iraqi dinars may become 10 trillion.
• International audit firm (KPMG) talked about the deficit of 17 billion dollars in the first half of the year 2016. What is the nature of this deficit?
And what is the nature of this large company hiring on Wall Street?
-As far as I know from my site, 2016 deficit as a whole was 25 trillion Iraqi dinars, but at the end of the year he became deficit in practice only 15 trillion, and this mortal has finance should provide 10 trillion by restricting expenditures and review and postpone some of them, either by the audit firm,
that's another story and it's a story linked to oil receipts account which in turn is an account outside Iraq at the Federal Reserve Bank of New York, the international auditing company have arms and many branches and access to information Need better than any national company, and is a respected global company and give credibility to their world, and this is used,
this does not negate the role of the Office of financial supervision in monitoring and verification and assumes that is the task or to be assisted by a foreign audit company or cooperating with it, happened earlier work crosses multiple audit contacts this is over now.
• There is a team coming to the United Nations will be responsible for following up Iraq's money, is it as seven tests in chasing the money that Iraq used to recall previously without consequence?
-We have in my organization, numerous actors and was supposed to be there on the one hand, past experience to follow fund all worked and found some good results and some are less and some didn't work completely,
the dilemma we faced we saw in Iraq funds recovery fund associated with Premiership formed according to the law and underwent one modification was established in 2012, this Fund belongs to the former regime's money only, OK what about Funds that came out after 2003?
Course includes bonus Fund Act of detective but they are few and not attractive because of the amendment to the law in opposition to the original bonus amount,
a meeting of all Iraqi governmental teams responsible for following up the Fund in the Office of the Prime Minister Dr Abadi, then emerged from a national team, not to lose the experience and information among all sides, either the International Advisory and monitoring board you've passed that, in Security Council resolution 1483, 2003, which established Iraq Fund known as DFI oil receipts Fund is deducted from 5% compensation to Kuwait,
then the Security Council International Advisory and monitoring board membership of the International Monetary Fund and the World Bank and the Arab Economic Social Fund of the Arabic League and a representative of Iraq was timely as I recall Mr Mahdi keeper when he was Secretary of planning and then Iraq was one, and one that the Council monitor the DFI, then updated problematic,
the Security Council approved the formation of an Iraqi team meets this The Council is known as the financial expert Commission of four experts, then the Security Council adopted resolution 1956 in late 2010 and that was after 6 months will raise international protection about the DFI and the Iraqis follow up themselves and solve the International Advisory and monitoring board.
• What about the DFI or Iraq Oil Fund at the Fed?
-Change the name only, and became a number to an account owned by the Central Bank the Federal Reserve, the legal rule says that the account is protected from creditors or booking despite the lifting of international protection.
• As long as we're talking about money lost Iraq what about Inspector General specialist in Iraq reconstruction Stuart Bowen and talking about the missing $17 billion had to spend in 'er?
-I looked at the book, Bowen and I had previously met four times and visited me twice and is a nice person and calculated on the Republican Party and became retired afterwards, he talked about the many stories, Bowen watched Americans in Iraq expenses, for example talking about charging Iraqi funds to Iraq at the airport they give amounts to Kurdistan and gave to the Minister of finance, then full Janne ullbors GILANI in a way cache and many other stories, but I think that these funds are not lost.
• Earlier demanded a rethink Paris Club agreement, why?
And why I said then that Iraq could pass a 2022?
-The Paris Club agreement includes a 16-year grace period after the expiration of the grace period, we will pay the remaining debt was reduced and Iraq, Iraq, at the time managed to write off 100 billion dollars of debt in its 128 billion dollars in principle,
countries are still stalling in the settlement for reasons perhaps having no documentation on debt or debt that mere allegations or perhaps because political positions or maybe she wanted to write off their debt in full For the Paris Club debt written off, including 80%,
Iraq today fought on behalf of the whole world, so it is my opinion that any country linked to terrorism must remove their debt to us and I think we need an ethical tour with the Paris Club, which States owe at that time was 65 countries including 19 countries are members of the Paris Club are all borrowed from them, and all are subject to a Paris Club agreement,
some countries such as Malta, Cyprus American debt written off by 100 percent at that time, Russia was removed by 94% in the Paris Club, in 2022, there will be many loans must be repaid,
for example there is a bond issued by the Iraqi Government for Iraq business solvency and named 2028 traded in secondary markets of London and that will be snuffed out too and there's another $1 billion bond would also be snuffed out in 2022 and plenty of cash loans will be repaid in 2022, and so there will be many loans to repay And this year's peak, but now to 2022 God willing will improve conditions,
today Iraq's debt by 35% domestic debt and this controlled, there are 35% of the debt of Iraq's remaining debt after Paris Club agreement, equivalent to 41 billion dollars, which isn't true and some debts because of forbidden weapons and supply some States hesitate to claim him, at the time the agreement was signed by Dr Adel Abdul Mahdi and Sinan Shabibi and d exists was Professor Aziz Jaafar and I,
and she was supposed Write off Iraq's debt by 90% but France opposed on the grounds that Iraq is not a poor country,
Russia did not agree to debt reduction, but President Bush talked at length with President Putin and managed to persuade him.
• What about repaying debt?
Does Iraq pays its benefits in 2017?
-Section of these benefits to the 19 Paris Club debt, 9 billion dollars and Iraq pays these benefits every six months and 5% and there are internal debts Rafidain and Rashid must be repaid, the amount is 5 trillion Iraqi dinars in 2017.
• To talk about the draft United Kingdom loan of £ 10 billion, what the nature of this loan?
-This loan is mentioned in the federal budget law for 2017, Minister of finance to sign a memorandum of understanding for a loan of 10 billion pounds by the British Agency for exports to finance development projects, including the allocation of $120 million desalination project,
the loan interest is low and you can pick it up in 10 years and pay well over 10 years, British companies to implement infrastructure projects with this loan and from our side we must be first class companies with international competitive prices.
• A memorandum of understanding with Germany to borrow half a billion dollars. What about this loan?
-Is 600 million dollars actually is part of the grant financial umbrella that comes due credit with IMF standby agreement, and this agreement is comparable to the international coalition against ISIS but competent to support the economy of Iraq.
• There are leaks of Kurdish politicians in Iraq Kurdistan's debts of 40 billion dollars. Is eminent Iraq?
-The Government has no knowledge of these loans, with respect to the loan but the loan without the knowledge of the Federal Government is negligible and does not constitute a commitment it's like borrowing from a Jordanian Bank dealer, does the Government do with him?
We asked them audited accounts according to international standards and then everything debatable and specifically the oil, the oil companies' debt in the Federal Constitution and the proportion of 17% for the region as a result of export parked away from Sumo, territorial agreements with oil companies have nothing to do with the licenses.
• There is talk of renegotiation of oil licenses. How would that be?
-Contained in the budget law for 2017 and oil companies themselves don't mind their renegotiation, talk about a bug tour agreement has nothing to do with political rhetoric, because it avoids some delve into the specifics,
what counts is Iraq's interest, it is important that the costs are minimal, for example we spent $45 billion on corporate rights but 280 billion dollars imports and therefore useful oil field tours that are not developed and was left to lower its production by 7% so we need contracts with world companies, according to Fair grounds and check the interest of Iraq.
• What about contractors' dues, why not pay?
-There is an agreement with the Government in order to conduct their legitimate rights through bonds repaid over 5 years carries the benefit of 5% and if the contractor can sell bonds to the Central Bank for money in cash terms, the Central Bank will take the amount of the bond and its benefits from the Treasury Department after 5 years,
he can sell the bond in secondary markets, 45 billion dollars initially, and sync it with the beginning of standby agreement with the IMF credit and demanded to stop relying on the latest information says that a lot of construction signs Question mark,
this part of the project financial management governance in Iraq, and the responsibility of the contracting audit rests with the Office of financial supervision that had checked on a sample basis but was demanding scrutiny,
first check for four thousand or five thousand 300 discovered fake contractor contractor, which has divided the shot doesn't exist and this difficult circumstance in dinars billions,
we don't want to delay the rights of people and the IMF will give us his opinion and solve the crisis within two weeks, the Office of financial supervision vowed to end the scrutiny On 16 March.
• Rafidain spoke in a statement about not feeding retirement instruments delaying retiree pensions.
What is the problem of pension and retirement fund?
-Sovereign wealth Fund, retirement fund should invest his money and return to their needs first and finally, the last I heard of it about the box number 14 trillion Iraqi dinars, about the confusion between the pension and the banks is poor organization, problems between government departments must not go to the media, retired hurt, there is deterioration in the Department and this calamity of Iraq woes.
• Where the bond sale has arrived?
-This idea enacted balancing act 2016 5 trillion to promote to the public the fact that the public has lost the culture of Sindh, and these bonds of sovereign guarantee, publicity was very weak for the subject and people don't know anything about, to succeed the idea we thought of swapping internal government debt bonds, for example paying the rights of contractors.
• A project named sovereign fund to finance private companies reportedly suggest Dr.. What is this project?
-Yes I proposed, today we need major projects, today we move from a centralized economy to a market economy, and for that there should be a sovereign wealth Fund inside the private financing, the Fund needs to another fund of social protection, as well as the business environment should be developed through which registration or cancellation of company minutes, not slow about record companies, although the Government, the possibility of money laundering after that can be pursued legally, we don't want to be Liberals too much in the end, the most important is discipline.
• Central Bank Governor relationship appeared in more than one seminar to talk about cash reserve, this is a reference to something?
-Iraqi citizen's share of reserves not less than $1000 or $1200 and his share of the $3000 debt but must take into account the real debt and unreconciled, Amen Bank Governor on his work, and we all work more closely with the IMF, Central Bank reserves should fall to 38 billion dollars, according to IMF estimates,
but in the final round that brought us together was the Monetary Fund reserves amounting to 47 billion dollars, currently its Affinity reserves billion dollars, so the Monetary Fund Iraqi economy optimism point number, in the whole world must cover 6 months of reserves in our Iraq import cover 8 months, import relief, in my opinion.
• Global economic press reports that Iraq was a testing ground for what is known as shock and economy is taken up when most Chicago school pass privatization people indirectly.
Do you find this true?
-The formation of Iraq's economic system was at the height of globalization in the neo-liberal ideology,
for example the law the Central Bank release the remittances and release all customs canceled these high economic liberalism,
but fragile economy like the Iraqi economy under these circumstances turned commercial capital, there was no development projects with high property prices, real estate capital started selling their properties and diverted to outside Iraq as cheaper there, agricultural capital collapsed by the flow of cheap goods, thus turning the Iraqi capital out of Iraq, what An event called markentalih, the State is sponsoring a financial economy only and no development there, yes there was a shocking Chicago School of Economics,
currently there is a breakdown of the capitalist system and is similar to the stage with a pre World War II,
regarding the Iraqi economy, I am optimistic and say that after the liberation of Mosul there will be a new path to economic reform.