IMF dissatisfied with Iraq’s monetary policy
Sunday, November 21st 2010 12:41 PM
Baghdad, Nov. 21 (AKnews) – The International Monetary Fund (IMF) has cited Iraq’s monetary policy as the reason for turning down an Iraqi request for a loan package to reduce its 2011 budget deficit, an advisor to the Iraqi government said today.IMF Building New York
Despite the IMF’s rejection, talks between Iraq and the fund continue to obtain a loan package to balance its 2011 budget deficit which is yet to be passed by the Iraqi parliament.
“The IMF… is not satisfied with the current Iraqi financial policy and has urged the government to make extensive changes” said Abd Hussein al-Jaberi, a member of the board of advisors to the Council of Ministers.
The IMF has called for changes at the level of the disbursement of funds, reduction of inflation, a plan to encourage the private sector and address sagging employment figures in governmental departments, said al-Jaberi.
The Iraqi Finance Ministry called on the Ministry of Industry and Minerals earlier to work on transforming its subsidiaries into self-financing companies in order to cover the expenses of its employees.
The Ministry of Planning and Development has said there is a huge workforce in governmental departments.
“Iraq has promised the IMF to address the monetary issues” said al-Jaberi, “but talks are still underway between the two sides to come up with solutions”
The Iraqi Finance Ministry announced last month the finalization of Iraq’s 2011 draft budget, the majority of which has been devoted to investment. The 2011 budget amounts to US$86.4 billion, up from around US$72 billion last year.
Reported by Jaafar al-Wannan
Sunday, November 21st 2010 12:41 PM
Baghdad, Nov. 21 (AKnews) – The International Monetary Fund (IMF) has cited Iraq’s monetary policy as the reason for turning down an Iraqi request for a loan package to reduce its 2011 budget deficit, an advisor to the Iraqi government said today.IMF Building New York
Despite the IMF’s rejection, talks between Iraq and the fund continue to obtain a loan package to balance its 2011 budget deficit which is yet to be passed by the Iraqi parliament.
“The IMF… is not satisfied with the current Iraqi financial policy and has urged the government to make extensive changes” said Abd Hussein al-Jaberi, a member of the board of advisors to the Council of Ministers.
The IMF has called for changes at the level of the disbursement of funds, reduction of inflation, a plan to encourage the private sector and address sagging employment figures in governmental departments, said al-Jaberi.
The Iraqi Finance Ministry called on the Ministry of Industry and Minerals earlier to work on transforming its subsidiaries into self-financing companies in order to cover the expenses of its employees.
The Ministry of Planning and Development has said there is a huge workforce in governmental departments.
“Iraq has promised the IMF to address the monetary issues” said al-Jaberi, “but talks are still underway between the two sides to come up with solutions”
The Iraqi Finance Ministry announced last month the finalization of Iraq’s 2011 draft budget, the majority of which has been devoted to investment. The 2011 budget amounts to US$86.4 billion, up from around US$72 billion last year.
Reported by Jaafar al-Wannan