Transferring Iraq to a Private-Sector State as IMF condition to grant it loans

[dbcooper]

Transferring Iraq to a Private-Sector State as IMF condition to grant it loans

Sunday, March 28th 2010 9:29 AM

Sulaimaniyah, Mar. 28 (AKnews) – Iraq's Finance Ministry Undersecretary, Fazil Nabi, has announced on Sunday that the International Monetary Fund (IMF) is going to push Iraq forward in order to shift into a "private sector" system, in order to grant it a loan to cover the deficit into its state budet.

“The State Presidency seems to force the Finance Minister to make a deal with the IMF to receive money for covering the state budget deficit, despite our disagreement on such conditions,” Fazil Nabi said.

According to the above-mentioned funds, Nabi said: “the Iraqi government has made the deal with the IMF, in order to use it in reconstruction and housing projects in Iraq.”

The IMF, at the mean time, has forced Iraq to shift into the "private-sector system," but this process must be taken gradually for accepting it.

Earlier, the Iraqi MP and Financial Commission Member, Sámi Atrushi said: “the IMF has impelled tough conditions, such as increasing oil prices and decreasing domestic spends, as well as restricting the salaries of employees and retired personnel, as a condition to lend money for Iraq.”

“The above conditions have negative impacts on the Iraqi financial and economic aspects together with changing both educational and health sectors to private ones,” Atrushi said.

http://www.aknews.com/en/aknews/2/129259/

[kaperoni]

More good news in my book...It just shows that the IMF has confidence that Iraq is ready to take on the responsibilities themselves to manage the rate, exchange, trade, regulations, etc. Here is a link to the IMF and related to how they work with countries..In other words the IMF is saying...here is the key to your finances and your ready to join the ranks of the world.

http://www.imf.org/external/pubs/ft/exrp/govern/govindex.htm

This is a section that is interesting..

Aspects of Governance of Relevance to the IMF
5. Many governance issues are integral to the IMF’s normal activities. The IMF is primarily concerned with macroeconomic stability, external viability, and orderly economic growth in member countries. Therefore, the IMF’s involvement in governance should be limited to economic aspects of governance. The contribution that the IMF can make to good governance (including the avoidance of corrupt practices) through its policy advice and, where relevant, technical assistance, arises principally in two spheres:

improving the management of public resources through reforms covering public sector institutions (e.g., the treasury, central bank, public enterprises, civil service, and the official statistics function), including administrative procedures (e.g., expenditure control, budget management, and revenue collection); and

supporting the development and maintenance of a transparent and stable economic and regulatory environment conducive to efficient private sector activities (e.g., price systems, exchange and trade regimes, and banking systems and their related regulations).

[IcemanSC]

Good find thanks for the post.

[swampyjackpot]

Thanx for this post.... it seems that we are slowly working toward the RV, this just gives me more hope that it will happen soon. I wish the "soon" was right now as I really do not want to wait till June 1st. But then again, I have seen soooo many "firm" reasons why it should have happened several dates ago. I really appreciate your research and opinions!