MPs: pay on credit law is contrary to the requirements of the International Monetary Fund
Date: Monday 12/03/2012 10:11
Baghdad / follow-term
commission said services and reconstruction of parliamentary that the House rejected the Law of the payment on credit was the result of incompatibility with the policy of the International Monetary Fund, referring to the possibility of re-consideration of this law in the event demanded the government do so, at the same time stressed a number of experts that the government did not abide by the instructions of the International Monetary Fund for the development of its banks and its financial transactions as required.
It is noted that the International Monetary Fund called on the Iraqi government to cover the fiscal deficit made in the federal budget and the development of the banking system in both its government and private and reforms of financial and other economic.
showed a member of the Services Committee, the parliamentary Kamilp Moussawi, according to (Twilight News): The House of Representatives had a fear of the law of payment on credit for the adoption of the previous regime it during the period of his rule, and liver of the country's debts are a great addition to that law inconsistent with the policy of the International Monetary Fund. Musawi said that the Commission services and reconstruction will host the Minister of Municipalities regarding the law of the infrastructure for inclusion in the agenda of the House of Representatives and voted on confirming that the payment on credit not for housing projects and low cost, but also includes all the development projects in the country. "
said al-Musawi: In the case of dependence on the budget in the implementation of the projects there will be no development of urban and can not rise up the economic reality in the country ", stating that" the law of payment on credit will solve many of the problems facing the process of construction and development. "They pointed out the possibility of revision in the law of payment on credit and included under the budget law.
have agreed earlier in the committees of financial, economic, legal, oil and gas on the repeal of article 25 of the financial budget, and placed strict controls for projects where the payment on credit and add a paragraph in the budget, related to audit the accounts of state institutions by the Council of Representatives and the monthly and is sent to Help the budget after vote them to the provinces during the week.
Meanwhile, the number of experts that the government did not comply with the instructions of the International Monetary Fund for the development of its banks and its financial transactions as required, confirming the inability of Iraq to meet the demands of the Fund.
The economist said Ali Ke Ji according to (Rn) that the government did not implement the mechanisms of the International Monetary Fund to develop its dealings Banking and Finance as required in exchange for a loan of U.S. $ 3 billion, pointing out that the transactions Banking require to make way for electronic trading and the development of the banking system mail to withdraw money from after the expansion of trading of private banks with government institutions. "
said Ke Ji that the transactions the central bank is still limited to preserve the value of the dinar national without developing a real political cash in the country so that the balance fiscal policy pursued by the government, particularly with regard to the file of the implementation of the budget year.
In turn, the Director-General of the Bank of Mercy National Previous Abbas Hnaoh (Rn), the IMF asked the government to reduce the budget deficit, which has not Talph the last budget in 2012. He Hnaoh that the government needs to the loans of international financial order to cope with the requirements of international economic development and the need for the global market to the trading banking and financial high-resolution level. "He said the banking Iraq is still a primary is not balanced with the aspirations of the country and plans drawn up by the development of the internal structural of these banks in both its government and private sectors, "noting that" the deficit in the current year budget is can be treated by relying on oil prices remain above $ 100.
For his part, the Central Bank of Iraq did not distract from the IMF loan has a $ 3 billion only two billion dollars for the purposes of back-up. "said Deputy Governor of the Central Bank of the appearance of Mohammed Saleh (Rn) that the government were not needed to borrow from the IMF only for the purposes of credit and back-up for fear of the financial crisis, noting that" the interest of Iraq to take advantage of the experience of the Fund in its dealings banking the next phase. "
Saleh added that Iraq agreed with the Fund during the meetings ended yesterday in the Jordanian capital of Amman to start the implementation of high-level plan for the development of financial dealings in private banks and government. "
and completed the International Monetary Fund last week's second review of the progress achieved by Iraq under the program supported loan, and stipulated that the fund should be Iraq amendments almost radical in the tax system as a basis for granting loans and to support its projects.
Iraq had decided since the beginning of 2006 to restructure State-owned banks have, as government continues to rely on its financial transactions on the government banks by 85% .
He International Monetary Fund in recent support of the Iraqi economy in the event of his a number of economic measures, including raising three zeros from the local currency.
The House of Representatives has approved during its meeting held on 23 February, the budget of the year 2012, which amounted to 117 trillion Iraqi dinars, including the equivalent of about U.S. $ 100 billion.
The Minister of Finance and Planning Minister and President of the Office of Financial Supervision met, on Friday the nineteenth of this month, with the International Monetary Fund in Amman capital of Jordan to discuss the reality of the Iraqi economy, and the development of a new map for spending budget this year, Minister financial Rafie al-Issawi called for a new law to pay on credit.
[You must be registered and logged in to see this link.]