Hootowl: jmo ,,,but I can’t see the investors and the IMF, WB, Kuwait being all that happy with Iraq using all the billions Iraq just got in currencies to handle the economic side….when they could have used their own money ,,,all they had to do was revalue
Jay: Hi HOOT. They need to use these loans to gain credit worthiness. These loans are to raise their global credit score. Its not about affording it on their own.
Stephenmac63: In addition, you can have all the money in the world but in order to build a credit rating you need debt. A person with a million dollars….has a million dollars but hasnt proved that they are willing to be responsible to pay a debt in the future.
So they go out and take on debt such as a loan. You and I know they can pay cash for it on a moments notice to satisfy the debt but that doesnt help them in a credit rating situation.
If a company, or even a country paid cash for all of its resposibilities, this only proves one thing…..they pay up front. But one day need a 62 trillion dollar doohickie but dont have the cash, so how do they get it? No country has ever loaned them any money so they do not know if they will pay back.
Iraq is building a credit score by taking on debt even though they can afford to pay cash but they are also looking for the long run. Right now they are known for “Oh yeah, they pay cash” but they need to be known for “Oh yeah, they always pay their bills every month”
In addition to what Jay said
Cole: Yes SM and JAY credit! Reestablish a reputation in the international community… after being on a PR with sanctions… credit TANKED. Who wants to do business with someone with bad credit? Investors need a warm welcome…imo
PMac: Anyone else like the work demand. I’d have a problem with it except it’s so… DEMANDING!!!
Samson: IMF demands more conditions for Iraqi loan
3rd May, 2017
Informed financial sources disclosed that the representatives of the International Monetary Fund (IMF) informed Iraq that the payment of the 840 million dollar-batch necessitates enhancing tax system and collection of revenues , as well as the seriousness of Iraq to continue this procedures.
The sources criticized the available information as “electoral” talk, that will affect Iraqi talks with the international organizations.
Lately, the representatives of the Iraqi private sector discussed with the IMF the delayed payments of Iraqi contractors and peasants and how to solve these problems for the stabilization of the Iraqi market.
The IMF criticized the procedures how to collect the customs tariff, demanding to increase it to 30%, as media reports said.
On the other hand, the IMF called for restructuring both governmental Rafidain and Rasheed banks and give the private banks better opportunities , as well as combating money laundering.
The increase in employments in the governmental sector will create a deficit in the coming 10 years, IMF expected.
Samson: International Monetary Fund requires regular taxes strengthening and collection for the disbursement of the new loan
2nd May, 2017
Revealed the beginning of a financial source for “Journal News”, that representatives of the International Monetary Fund, told Iraqi officials that the second review of the standby credit agreement is complete and the consequent release of a new batch amount of $ 840 million, representing a new batch of loan the Fund depends on the regular tax collection and strengthening of the country, and to make sure Iraq was serious in moving in this direction.
The source said in a statement singled out by the “Journal News”, that “some officials motivated harassment and electoral bids statements, regarding economic reform measures, still pose damage to talks with international organizations.” Discussed by representatives of the Iraqi private sector with a delegation from the International Monetary Fund, the recent approval of a loan for Iraq to pay off the arrears to contractors and suppliers of Iraqis and peasants, and the ways to solve this problem, given the importance in stabilizing the economy.
He asked the deputy head of the International Monetary Fund for the Middle East and Asia Christiaan nut at the meeting , which was held in Baghdad , ” the possibilities that increase state revenues, including taxes and activate those imposed on non – oil products.” He pointed out that “customs duties ranged between 5 and 10 percent,” returned it “is not the proper way in which the customs revenue pool”.
He stressed the need to “change the way up to 30 percent.” He said that “faster gains and revenues resulting from the regulation and taxation unit, and these significant revenue achieved as imposing on a slide adult merchants.”
Nut and called for a “hiring freeze until the development of management, because the high proportion of staff in the civil service was a way to satisfy some of their employment without regard to efficiency, this system will lead to a deficit over the next ten years.”
He drew attention to ” the problem of the weakness of the banking sector and the importance of strengthening business through Rafidain Bank restructuring and good government, and wide open space in front of private banks with the need to assess the weaknesses and the correct foundations for the fight against money laundering, it can resort to the Integrity Commission and specialized organizations.”
He noted ” the progress achieved by the Office of Financial Supervision in the audit of transactions audited.” She said economist Ibrahim al – Baghdadi , in an intervention that Iraq “began levied customs tariff , which increased its resources in some customs ports to more than 30 times, and the collection of electricity increased 20 times, and referred the Ministry of Electricity to collect electricity fees on companies under investment contracts, and began to appear positive results. ”
He stressed that ” the payment of dues will move the market wheel handles weak cash liquidity in the markets, which affected the individual and small business income level.”
The head of the Federation of Iraqi Contractors Ali Snava, ” the launch of arrears of transactions audited by the Office of Financial Supervision.”
He said that the “Union of Contractors comprises 34 thousand contractors, and gets a large part of their suffering in the tax calculation stage, because the amounts of tax deductions reserved to the provinces.” Promised economic researcher Lubna al – Shammari, that ” the banking sector reform is a gateway to various investments to Iraq.”
The informed sources revealed the axes of the meetings of the Ministry of Finance with the World Bank , held in the United States recently, saying they patrol before granting Iraq a share of the loan by $ 450 million, pointing out that the meetings will continue every 3 months until Iraq gets a loan full payments for up to 5 billion and $ 400 million next year.
Government sources said, ” The Iraqi Ministry of Finance meetings with the World Bank held in Washington , is a third patrol nine months ago.”
The sources added that “Iraq has already agreed with the International Monetary Fund and the World Bank to obtain a loan of up to $ 5 billion and $ 400 million , repayable over three years.”
She noted that “the lender required on Iraq , carrying out a number of reforms for the purpose of completing pay these amounts.”
The sources confirmed that ” the last meeting was held three months ago in the Jordanian capital , Amman , and allocated for the same purpose , ” indicating that ” the Iraqi delegation renewed its commitment to the terms of the World Bank that spends payments intended purposes.”
In turn, the economist said Abdul Rahman al – Mashhadani , in a commentary, said that “the international body seeking to determine the extent of Iraq ‘s commitment to the terms of the loan before granting a new batch.”
Mashhadani said that ” the meetings will remain constant with each $ 450 million and a boost in order to complete the full value of the loan.”
He added that ” the purpose of the foundation amounts , according to the World Bank is to meet the budget deficit and the balance of payments in Iraq.”
Mashhadani finds that “periodic meetings are a calendar allowing Iraq to submit a paper explaining its mechanisms to deal with the economic crisis.”
The economist went on to “another loan to ensure the World Bank is also provided by Britain, France and Canada reached its value to $ 13 billion.”
It complements Mashhadani , saying that “Iraq has received from this loan -alm_khass for the reconstruction of areas Mahrrh- during the last term of 980 million dollars. LINK
Samson: Iraq receives two billion dollars from the International Fund
A commission of economy and investment parliamentary Alreeta from Iraq near the receipt of two billion dollars from the International Fund, while suggesting that the money reaches of Iraq as a loan from the International Fund to support the Iraqi government in the financial Tjaosalozmh.
The committee member Najiba Najib Najib in a press statement that “Iraq has received in the past period billion and $ 400 million loan from the International Monetary Fund of the total allocated loan to him amounting to five billion and 400 million dollars paid to Iraq in the form of payments for a period of three years.”
She added that “Iraq is bound by the Convention, monetary and financial decisions issued by the International Monetary Fund and to provide a detailed report on the funds and financial Tnaqlath and the work of banks to the International Fund.”
Najib pointed out that “the coming months will witness Iraq receiving two billion dollars from the International Monetary Fund, saying that” the money comes in support of the Iraqi government to end the financial crisis and to improve the economic situation in Iraq. LINK