Al-Zubaidi: the budget deficit and the failure of oil policy behind resorting to loans, Abdul-Mahdi: The problem is not the need for loans, but in good use
BAGHDAD - Firas Al Sadoun
Wednesday witnessed the signing of the Ministry of Finance with the World Bank loan agreement known as the Convention on the Sustainable Development Policy (DPL) under which the ministry received 250 million out of $ 500 preferred to keep the other half held by the bank with retaining the right to withdraw when the need arises.
Before that day was the twenty-fifth of last month have carried the news of approval of the IMF to lend Iraq $ 3.8 billion, but Finance Ministry did not receive a single dollar of the loan because it is not needed now as you say, while there seems to be another reason, will be shown later, The question is: Does Iraq need this loan?
Finance Minister Bayan Jabr said the "world" that "there is a real need because we have a deficit and so far failed and the Oil Ministry to increase exports while we hope at the end of this year, the ministry also promised to increase export and then will not need loans." He said al-Zubaidi "There is a deficit in the budget for 2010 is 18 billion dollars, that covers the first deficit of the budget surplus last year, which ranges between 8-10 billion dollars, and the remaining teams covering the price of oil as Iraq, of selling a barrel to 74 dollars in the market price of $ 62" . He added that in the absence of such amounts to cover the deficit in Iraq, "$ 1.8 billion is SDR in the IMF as founding members of the Fund and Senshabha when what we want and when you bring her back this surplus as well as $ 3.8 billion and the Fund agreed to lend us with them."
Zia Habib Alckheon adviser to the Ministry of Finance said banks for his part for "the world" on the justification for resorting to "loans that the financial policy always take the worst-case scenario in the years 2008 and 2009 we had a deficit was covered by oil exports or borrowing, it is known that borrowing remains the only true guarantee to fill the deficit with the fluctuation of oil prices we have seen how the reduced from $ 147 a barrel to $ 29 Borrowing a precautionary measure. "
The Alckheon that "the budget deficit is not a shame All the budgets of the world where a deficit resulting from new jobs or emergency facing the country and our country and most of the consumer budget allocations go to the driver that does not invest." Regarding the fate of loans obtained by Iraq, the Alckheon that "loans within the Development Fund for Iraq and remain in the Finance Ministry's account, if used by the ministry entail not only the benefits and consequences."
"The World" sent a question to Adel Abdul Mahdi, Vice-President of the Republic of Iraq needs to such loans, and he answered: "Iraq needs to be times this amount, the problem is not in Iraq's needs, but in the proper use of funds, if used to cover the deficit, this is not of the assets IMF. "
Perhaps this explains the non-use of the Ministry of Finance so far $ 3.8 billion was approved by the Fund to lend to Iraq, which referred to earlier.
"Abdel-Mahdi," Iraq must be careful to pay the loan installments and retain Pfdilth hence focus on infrastructure is necessary and disbursement of funds which will increase the investment and then the loan may be put in place, and possessed the capacity of the country and do not accrue paid by installments and interest, as we have accumulated from the days of Saddam Hussein rose to more than $ 140 billion not paid back only after acrimonious negotiations in the Paris Club and so far there are still some outstanding issues. "
BAGHDAD - Firas Al Sadoun
Wednesday witnessed the signing of the Ministry of Finance with the World Bank loan agreement known as the Convention on the Sustainable Development Policy (DPL) under which the ministry received 250 million out of $ 500 preferred to keep the other half held by the bank with retaining the right to withdraw when the need arises.
Before that day was the twenty-fifth of last month have carried the news of approval of the IMF to lend Iraq $ 3.8 billion, but Finance Ministry did not receive a single dollar of the loan because it is not needed now as you say, while there seems to be another reason, will be shown later, The question is: Does Iraq need this loan?
Finance Minister Bayan Jabr said the "world" that "there is a real need because we have a deficit and so far failed and the Oil Ministry to increase exports while we hope at the end of this year, the ministry also promised to increase export and then will not need loans." He said al-Zubaidi "There is a deficit in the budget for 2010 is 18 billion dollars, that covers the first deficit of the budget surplus last year, which ranges between 8-10 billion dollars, and the remaining teams covering the price of oil as Iraq, of selling a barrel to 74 dollars in the market price of $ 62" . He added that in the absence of such amounts to cover the deficit in Iraq, "$ 1.8 billion is SDR in the IMF as founding members of the Fund and Senshabha when what we want and when you bring her back this surplus as well as $ 3.8 billion and the Fund agreed to lend us with them."
Zia Habib Alckheon adviser to the Ministry of Finance said banks for his part for "the world" on the justification for resorting to "loans that the financial policy always take the worst-case scenario in the years 2008 and 2009 we had a deficit was covered by oil exports or borrowing, it is known that borrowing remains the only true guarantee to fill the deficit with the fluctuation of oil prices we have seen how the reduced from $ 147 a barrel to $ 29 Borrowing a precautionary measure. "
The Alckheon that "the budget deficit is not a shame All the budgets of the world where a deficit resulting from new jobs or emergency facing the country and our country and most of the consumer budget allocations go to the driver that does not invest." Regarding the fate of loans obtained by Iraq, the Alckheon that "loans within the Development Fund for Iraq and remain in the Finance Ministry's account, if used by the ministry entail not only the benefits and consequences."
"The World" sent a question to Adel Abdul Mahdi, Vice-President of the Republic of Iraq needs to such loans, and he answered: "Iraq needs to be times this amount, the problem is not in Iraq's needs, but in the proper use of funds, if used to cover the deficit, this is not of the assets IMF. "
Perhaps this explains the non-use of the Ministry of Finance so far $ 3.8 billion was approved by the Fund to lend to Iraq, which referred to earlier.
"Abdel-Mahdi," Iraq must be careful to pay the loan installments and retain Pfdilth hence focus on infrastructure is necessary and disbursement of funds which will increase the investment and then the loan may be put in place, and possessed the capacity of the country and do not accrue paid by installments and interest, as we have accumulated from the days of Saddam Hussein rose to more than $ 140 billion not paid back only after acrimonious negotiations in the Paris Club and so far there are still some outstanding issues. "
