{EXCHANGE RATE] Abadi adviser for the world: interest loan «IMF» not exceeding 1% and payment .. 5 years
G-Lin Baghdad Samir Mohammed says Dr. appearance of Mohammed Saleh, an economic advisor to Prime Minister Haider al-Abadi said the benefit of the IMF loan, which will be launched in two phases be the first "funding rapidly" with 88 million dinars, and unconditionally "not exceeding 1 percent,"
While between be repaid will be over 5 years, pointed to spend it on facets of life different pertaining to "Education, education, health and file displaced."
Observers indicated that the Fund will monitor the disbursement of the loan, "including in the interest of the country," according to the obligations and conditions set by the Fund, but economists drew that lending to Iraq indicates Fund trust the Iraqi economy.
~~~
G-Lin Baghdad Samir Mohammed says Dr. appearance of Mohammed Saleh, an economic advisor to Prime Minister Haider al-Abadi said the benefit of the IMF loan, which will be launched in two phases be the first "funding rapidly" with 88 million dinars, and unconditionally "not exceeding 1 percent,"
While between be repaid will be over 5 years, pointed to spend it on facets of life different pertaining to "Education, education, health and file displaced."
Observers indicated that the Fund will monitor the disbursement of the loan, "including in the interest of the country," according to the obligations and conditions set by the Fund, but economists drew that lending to Iraq indicates Fund trust the Iraqi economy.
~~~
The parliamentary Finance Committee revealed the approval of the International Monetary Fund to lend Iraq $ 5 billion.
The government is working on several measures to meet the shortfall in the budget law for the current year, amounting to up to $ 25 billion, among those measures the trend towards external borrowing, in addition to internal borrowing from the Central Bank and the Rafidain and Rasheed.
Saleh said in a statement to "the world", that "the subject of borrowing approved in the General Budget 2015 law to meet the Agr winning them," explaining that this loan will be launched in two phases; the first , in an emergency, and the second includes completed this year,
noting that "the duration will be repaid over 5 years, interest rate does not exceed 1 percent."
"The first phase of the loan, which are up to 88 million dinars, called means accelerating the funding, and those free of conditions, the Fund established by the borrowing countries", pointing out that they might be used to counter fluctuations in the balance of the Iraqi payments following the decline in oil prices.
He said, The second phase will be in accordance with the Convention on the standby credit, which was signed by Iraq with the Fund earlier; they require of Iraq's implementation of some of the important procedures established by the Fund.
and between that "the government will spend the loan within the priorities in health, education and displaced sectors."
It is said that Iraq has signed with International Monetary Fund in 2010 to prepare the credit agreement, which included the latter to provide a loan of Mali to support economic development activities and private investment budget in Iraq, while requiring Iraq to take some measures related to administrative reform.
For his part, said spokesman Abdul-Hadi, an analyst of economic affairs, in a comment "the world", that to get a loan from the International Monetary Fund "calls from Iraq commitment of some reformist conditions set by the Fund", pointing out that they "are often developmental conditions in the interest of the Iraqi economy."
He added that the Fund also intervenes in exchange trends the loan in accordance with the obligations that are placed between Iraq and the Fund, saying the latter that "puts a priority how to return the loan and financial capacity of the borrower; the granting Iraq a loan of this size indicates Fund trust of the Iraqi economy."
He pointed out that "The Fund seeks through these loans support the development process of the member states; it must be that the Iraqi government adopts a solution the problems experienced by the long-term the most important out of such rentier oil-based economy through the revitalization of other sectors, in addition to the establishment of a sovereign fund to address the crisis and the adoption of restructuring the Iraqi economy. "
required Fund IMF in the event of lending to member states to adopt financial management reform; the most important to be there is a constant and unified exchange rate, in addition to strengthening banking supervision activities with the audit of the Central Bank accounts of the external auditor twice a year.
The MP for the Parliamentary Finance Committee Haider Masood said Tuesday approval The International Monetary Fund on Iraq's request Baqradh amount worth five billion dollars as part of the response to the financial crisis experienced by the country.
Haider said that Iraq has the right to apply to the International Fund request in accordance with the Law of the budget financial loan, pointing out that the government presented its request and received Fund and procedures approval left to the Ministry of Finance and the IMF on the extradition of the amount.
It is said that Iraq in IMF member since 1945, and therefore of the objectives of the Fund is to international financial stability, the Fund shall exercise his duties and his work in the event of the member states have been shaken as a result of the fall in world oil prices.
In turn, confirmed Member of the Committee of Economy and Investment parliamentary Najiba Najib, yesterday, that the loan obtained by Iraq from the International Monetary Fund is not enough to fill the state budget deficit, which is estimated at 25% trillion Iraqi, pointing out that "just plug the current obligations in the State of salaries and other enough, as well as War requirements against terrorist Daash.
She added that oil production well and exported, but prices are not at the required level, meet the needs of the budget deficit, an expected increase in oil prices at the end of the current year.
The Ministry of Finance went to ask for borrowing from the International Monetary Fund to cope with the cash crisis caused by the war on terror Daash and lower oil prices to cover employees' salaries.
http://ift.tt/1QUYium
Dinarblowyourhorn Usually when we hear stuff about the rate adjusting we hope it's not just the gap between street rate and CBI rate. This time we are glad it means this. I think it's another way of saying stability in the rate is a prerequisite. Who knows?
G-Lin Thanks DBYH. I'm curious about a "constant and unified exchange rate." And this is a very low interest rate loan. I don't know if all CBI loans have low interest rates or if this may reflect a nice credit rating. I really like IMF stating they have trust in the Iraqi economy. All opinions welcome as always from our smart members. ;)
HandOverFist "the IMF loan, which will be launched in two phases be the first "funding rapidly" with 88 million dinars, and unconditionally"
"required Fund IMF in the event of lending to member states to adopt financial management reform; the most important to be there is a constant and unified exchange rate"
Well, whatever happens with the exchange rate will be "rapid". So do they want to keep the ridiculous exchange rate of 1166? We will see.
rissas dad Most important aspect of this article to me is the fact that the loan wouldnt have been made with faith in the Iraqi economy progressing and the needed laws to do so without believing that those things will be done soon. Along with what the cbi has been saying and doing and Parliament voting to work and not go on vacation (which is still hard to believe), I am encouraged as to May being a busy and productive month for Iraq. We shall see. I am looking for some important laws saturday or sunday.
"the granting Iraq a loan of this size indicates Fund trust of the Iraqi economy."
"but economists drew that lending to Iraq indicates Fund trust the Iraqi economy."
"they require of Iraq's implementation of some of the important procedures established by the Fund."
"that to get a loan from the International Monetary Fund "calls from Iraq commitment of some reformist conditions set by the Fund", pointing out that they "are often developmental conditions in the interest of the Iraqi economy."
"while requiring Iraq to take some measures related to administrative reform."
The government is working on several measures to meet the shortfall in the budget law for the current year, amounting to up to $ 25 billion, among those measures the trend towards external borrowing, in addition to internal borrowing from the Central Bank and the Rafidain and Rasheed.
Saleh said in a statement to "the world", that "the subject of borrowing approved in the General Budget 2015 law to meet the Agr winning them," explaining that this loan will be launched in two phases; the first , in an emergency, and the second includes completed this year,
noting that "the duration will be repaid over 5 years, interest rate does not exceed 1 percent."
"The first phase of the loan, which are up to 88 million dinars, called means accelerating the funding, and those free of conditions, the Fund established by the borrowing countries", pointing out that they might be used to counter fluctuations in the balance of the Iraqi payments following the decline in oil prices.
He said, The second phase will be in accordance with the Convention on the standby credit, which was signed by Iraq with the Fund earlier; they require of Iraq's implementation of some of the important procedures established by the Fund.
and between that "the government will spend the loan within the priorities in health, education and displaced sectors."
It is said that Iraq has signed with International Monetary Fund in 2010 to prepare the credit agreement, which included the latter to provide a loan of Mali to support economic development activities and private investment budget in Iraq, while requiring Iraq to take some measures related to administrative reform.
For his part, said spokesman Abdul-Hadi, an analyst of economic affairs, in a comment "the world", that to get a loan from the International Monetary Fund "calls from Iraq commitment of some reformist conditions set by the Fund", pointing out that they "are often developmental conditions in the interest of the Iraqi economy."
He added that the Fund also intervenes in exchange trends the loan in accordance with the obligations that are placed between Iraq and the Fund, saying the latter that "puts a priority how to return the loan and financial capacity of the borrower; the granting Iraq a loan of this size indicates Fund trust of the Iraqi economy."
He pointed out that "The Fund seeks through these loans support the development process of the member states; it must be that the Iraqi government adopts a solution the problems experienced by the long-term the most important out of such rentier oil-based economy through the revitalization of other sectors, in addition to the establishment of a sovereign fund to address the crisis and the adoption of restructuring the Iraqi economy. "
required Fund IMF in the event of lending to member states to adopt financial management reform; the most important to be there is a constant and unified exchange rate, in addition to strengthening banking supervision activities with the audit of the Central Bank accounts of the external auditor twice a year.
The MP for the Parliamentary Finance Committee Haider Masood said Tuesday approval The International Monetary Fund on Iraq's request Baqradh amount worth five billion dollars as part of the response to the financial crisis experienced by the country.
Haider said that Iraq has the right to apply to the International Fund request in accordance with the Law of the budget financial loan, pointing out that the government presented its request and received Fund and procedures approval left to the Ministry of Finance and the IMF on the extradition of the amount.
It is said that Iraq in IMF member since 1945, and therefore of the objectives of the Fund is to international financial stability, the Fund shall exercise his duties and his work in the event of the member states have been shaken as a result of the fall in world oil prices.
In turn, confirmed Member of the Committee of Economy and Investment parliamentary Najiba Najib, yesterday, that the loan obtained by Iraq from the International Monetary Fund is not enough to fill the state budget deficit, which is estimated at 25% trillion Iraqi, pointing out that "just plug the current obligations in the State of salaries and other enough, as well as War requirements against terrorist Daash.
She added that oil production well and exported, but prices are not at the required level, meet the needs of the budget deficit, an expected increase in oil prices at the end of the current year.
The Ministry of Finance went to ask for borrowing from the International Monetary Fund to cope with the cash crisis caused by the war on terror Daash and lower oil prices to cover employees' salaries.
http://ift.tt/1QUYium
Dinarblowyourhorn Usually when we hear stuff about the rate adjusting we hope it's not just the gap between street rate and CBI rate. This time we are glad it means this. I think it's another way of saying stability in the rate is a prerequisite. Who knows?
G-Lin Thanks DBYH. I'm curious about a "constant and unified exchange rate." And this is a very low interest rate loan. I don't know if all CBI loans have low interest rates or if this may reflect a nice credit rating. I really like IMF stating they have trust in the Iraqi economy. All opinions welcome as always from our smart members. ;)
HandOverFist "the IMF loan, which will be launched in two phases be the first "funding rapidly" with 88 million dinars, and unconditionally"
"required Fund IMF in the event of lending to member states to adopt financial management reform; the most important to be there is a constant and unified exchange rate"
Well, whatever happens with the exchange rate will be "rapid". So do they want to keep the ridiculous exchange rate of 1166? We will see.
rissas dad Most important aspect of this article to me is the fact that the loan wouldnt have been made with faith in the Iraqi economy progressing and the needed laws to do so without believing that those things will be done soon. Along with what the cbi has been saying and doing and Parliament voting to work and not go on vacation (which is still hard to believe), I am encouraged as to May being a busy and productive month for Iraq. We shall see. I am looking for some important laws saturday or sunday.
"the granting Iraq a loan of this size indicates Fund trust of the Iraqi economy."
"but economists drew that lending to Iraq indicates Fund trust the Iraqi economy."
"they require of Iraq's implementation of some of the important procedures established by the Fund."
"that to get a loan from the International Monetary Fund "calls from Iraq commitment of some reformist conditions set by the Fund", pointing out that they "are often developmental conditions in the interest of the Iraqi economy."
"while requiring Iraq to take some measures related to administrative reform."
Mike Great thread, thanks for the article, G-lin. For me, the IMF regularly makes loans to countries with the low interest rates, it's their way of stepping in to help. In this case, they're loaning Iraq the money for the displaced and they're going to monitor where it goes:
"the government will spend the loan within the priorities in health, education and displaced sectors."
Observers indicated that the Fund will monitor the disbursement of the loan, "including in the interest of the country,"
The best part for me is that this money comes with stipulations, there were several who commented on this earlier and it appears they were right.
The IMF has advised Iraq for years to move off the peg and open up their economy and have given these recommendation's in numerous Article IV consultations, apparently Iraq has agreed and we can now move forward, at what speed is anybody's guess.
they require of Iraq's implementation of some of the important procedures established by the Fund.
I think you're right DBYH, controlling the multiple currency practice (2% spread between official and street rates) is still important to the IMF and Iraq has to get this under control.
Now that the auctions are capped, the easiest way to do this is by moving off the peg and adding some kind of value to the dinar.
Fund IMF in the event of lending to member states to adopt financial management reform; the most important to be there is a constant and unified exchange rate, in addition to strengthening banking supervision activities with the audit of the Central Bank accounts of the external auditor twice a year.
So, now we wait and watch what Iraq does next, here's hoping they make a change......................in the coming days. :)
G-Lin Good points HOF and rd. I also like this " and therefore of the objectives of the Fund is to international financial stability,
Could that be accomplished at 1166? Constant and unified sounds fixed to me. Just throwing out some thoughts here.
hi-five 88 million dinar - 88,000 dollars. Iraq can't do much with that. IF this article is accurate in citing the 88,000,000 dinar amount, and the first installment is to be 88,000,000 dinar, they should RV the dinar before they disburse this first phase.
It seems the IMF has sufficiently put Iraq under it's control with the conditions of this loan.
G-Lin Hey Mike. We must have been typing at the same time. :). I always appreciate your insight. Of course we have varying opinions on the 2% spread and MCP, but time will tell.
I respect your research and we may just have to agree to disagree about those issues. It sure doesn't take anything away from my admiration and respect. ;)
HandOverFist hi-five, "the first installment is to be 88,000,000 dinar, they should RV the dinar before they disburse this first phase." Oh my goodness, you're right Hi-Five! Dare we hope?
Mike lol, no worries, G-lin. :) I'm the first to admit this is all speculation on my part, but it must have some kind of importance if the IMF themselves keep bringing it up.
HandOverFist hi-five, In thinking about this, maybe it's a misprint. Maybe the immediate funding is 88 billion dinar, instead of 88 million. That would make more sense.
hi-five HOF - - agreed, it would make more sense. Unless they intend to RV before they release the first phase. They have misprinted numbers before. There will probably be more articles on this which should shed more light on the numbers.
HandOverFist Really hoping your thoughts are correct, HiFive, and it's not a misprint
http://ift.tt/SKyvLJ
"the government will spend the loan within the priorities in health, education and displaced sectors."
Observers indicated that the Fund will monitor the disbursement of the loan, "including in the interest of the country,"
The best part for me is that this money comes with stipulations, there were several who commented on this earlier and it appears they were right.
The IMF has advised Iraq for years to move off the peg and open up their economy and have given these recommendation's in numerous Article IV consultations, apparently Iraq has agreed and we can now move forward, at what speed is anybody's guess.
they require of Iraq's implementation of some of the important procedures established by the Fund.
I think you're right DBYH, controlling the multiple currency practice (2% spread between official and street rates) is still important to the IMF and Iraq has to get this under control.
Now that the auctions are capped, the easiest way to do this is by moving off the peg and adding some kind of value to the dinar.
Fund IMF in the event of lending to member states to adopt financial management reform; the most important to be there is a constant and unified exchange rate, in addition to strengthening banking supervision activities with the audit of the Central Bank accounts of the external auditor twice a year.
So, now we wait and watch what Iraq does next, here's hoping they make a change......................in the coming days. :)
G-Lin Good points HOF and rd. I also like this " and therefore of the objectives of the Fund is to international financial stability,
Could that be accomplished at 1166? Constant and unified sounds fixed to me. Just throwing out some thoughts here.
hi-five 88 million dinar - 88,000 dollars. Iraq can't do much with that. IF this article is accurate in citing the 88,000,000 dinar amount, and the first installment is to be 88,000,000 dinar, they should RV the dinar before they disburse this first phase.
It seems the IMF has sufficiently put Iraq under it's control with the conditions of this loan.
G-Lin Hey Mike. We must have been typing at the same time. :). I always appreciate your insight. Of course we have varying opinions on the 2% spread and MCP, but time will tell.
I respect your research and we may just have to agree to disagree about those issues. It sure doesn't take anything away from my admiration and respect. ;)
HandOverFist hi-five, "the first installment is to be 88,000,000 dinar, they should RV the dinar before they disburse this first phase." Oh my goodness, you're right Hi-Five! Dare we hope?
Mike lol, no worries, G-lin. :) I'm the first to admit this is all speculation on my part, but it must have some kind of importance if the IMF themselves keep bringing it up.
HandOverFist hi-five, In thinking about this, maybe it's a misprint. Maybe the immediate funding is 88 billion dinar, instead of 88 million. That would make more sense.
hi-five HOF - - agreed, it would make more sense. Unless they intend to RV before they release the first phase. They have misprinted numbers before. There will probably be more articles on this which should shed more light on the numbers.
HandOverFist Really hoping your thoughts are correct, HiFive, and it's not a misprint
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