And Ziralamalipl "We support the central bank"

(Voice of Iraq) – 22/02/2010

Finance Minister Baqir Jabr Al-Zubaidi: At the end of this year will see the current Iraqi dinar currency pair and the new Iraqi dinar, which is no different for the same amount, noting that the employee’s salary is not affected by the standard of living, adding that Iraq’s debt to Kuwait and Saudi Arabia is a political debt will be resolved in the near future after installed the figures, saying Rafidain working system called universal banking system, a sophisticated system that works for a major international banks so far completed 60% at the end of this year will be completed in full.

(Range economic) interviewed Zubaidi for files on fiscal policy, its prospects and problems encountered in its functioning.

Q: Are the changes that have taken place on the 2010 budget by the House of appropriate and meaningful fiscal policy Ptkadirkm?

Yes, I believe that the changes made in the House not inconsistent with the tenets of the public going forward in 2010 where they added an important and sensitive issues, including one dollar on every barrel produced in any province, and this includes the governorates of Basra, Maysan and Dhi Qar, Wasit and Nineveh, Kirkuk any oil-producing provinces will also be Add one dollar per barrel of oil derivatives are extracted from it, and this would also include Baiji, Basra, Baghdad and Najaf, and a number of other provinces that have oil refineries, this comes because of these counties bear the burden of large and strenuous efforts, in addition to damage in environmental health in the provinces.

Among other changes with regard to the reduction of social benefits for the three presidencies, this undoubtedly hurt the budget in the interest of all the points that was held in support of the provinces and give broader financial powers to the provinces this positive issue that will accelerate the implementation of the provinces to the merits of the budget.

Q: How do you evaluate the investment orientation of the government and Maigablha the return of inflation to the previous level?

Government has so far not succeeded in activating the investment file, to the downfall of reasons, some security such as the bombings Wednesday and Sunday and Monday, and large explosions in Karbala and the blasts that took place in Anbar, as well as the deteriorating conditions in Mosul and Diyala, all of this is undoubtedly having an impact on the investment process as all conferences held in London and Washington and Cairo and Dubai did not succeed in making the investment process, where there is an imbalance in the performance of the investment, and there are limitations in the laws it needs to change in the old laws, whether Bremer’s laws or the laws of the former regime, and from my point of view There is another mechanism that can be followed in making investment and attract investors into Iraq, specifically to the safe areas by dealing directly contracts the partnership between the Iraqis and foreign private sector, and also there are other mechanism we believe it sets a new policy for the investment then the trend is to activate the file investment and this will reflect positively on the country which will contribute to the elimination of problems of unemployment.

Q: What about what we read in the media about the intention of the Ministry in the deletion of zeros from the Iraqi dinar?

This is not like the ministry, but the jurisdiction of the Central Bank independent of the ministry’s proposal but it is the proposal I submitted to me three years ago, by deleting three zeros and the Central Bank studied this proposal and the bank’s board finally approved by the end of this year we will see Ammeltian the current Iraqi dinar and the new Iraqi dinar, which is no different for The same amount will not be affected employee’s salary and standard of living of the citizen with the survival of the dinar in the same Altdlol.

Light of economic laws approved by the House of Representatives recently, what about customs tax?

By the customs fees will soon apply the law of customs tariffs, a new law prepared by the Ministry of Finance and approved by the Council of Ministers as well as after addition of amendments passed by the House of Representatives would raise state revenue from income and protect the national industry and agriculture, I expect the next few months.

Is there a vision of the Ministry towards the support and update their general form, banking system, and what about the private banking sector?

For Rafidain working system called universal banking system, a sophisticated system that works for a major international banks it has completed nearly 60%, at the end of this year will be completed in full, The Trade Bank of Iraq is now working as a business and is considered one of the best banks in the region and works according to the banking system and comprehensive smart card and Visa card, and the open credits for the public and private sectors.

The Agricultural Bank thereby acting actively submitted last year 81 thousand means an agricultural loan of 81 thousand agricultural project and the Bank of Iraq during the past two years after it was turned off and started to work provided 45 thousand real estate loan in the past two years.

The private banks are operating with modern technology and the government has supported through the granting of government funds, opening the way for banks that have capital of fifty million dollars we are giving them all the credit of $ million or less tens of appropriations That implied either bank has a capital of a hundred million dollars give them a credit of $ four million dollars, that’s an important source of government support for private sector banks.

Alabarmwjara we read that the ministry will go to support soft loans to employees and other segments, how Talqon on this news?

In fact, I was given a directive to open the file with soft loans for staff and citizens and even mixed-sector employees and the board made a decision and agreed to our proposal, or direct us, but we have noticed that the interest rate of 8% demanded downwards to 6% and I think that the proposal had been examined by the governing bodies and the fact that the Board of Directors is which sets guidelines for the protection of public funds and all are covered by the police and the army, staff and citizens, and will be launched on loans and advances for all categories of staff and concessional interest rates in order to support these important segments.

What about Iraq’s debts arising from his trust for the benefit of both Kuwait and Saudi Arabia and $ 21 billion?

I think this debt has become a political and debts will be resolved later in the political dialogue where you installed the figures remained the guarantor of political dialogue to resolve this dilemma, a debt since 1981 is outdated and obsolete was not claimed by Kuwait and Saudi Arabia so far, God willing, will be resolved in a timely manner.

Q: Is there coordination between the financial and monetary policies, and how do you evaluate the paths of monetary policy pursued by the Central Bank of Iraq?

We endorse and support the monetary policy, which operates the Central Bank and with them we form a working group and one in our relationship with the IMF and the World Bank and all international economic institutions in the world and even in the shared file processing debt the central bank in this matter, and we believe that there is a continuous coordination between the financial and monetary policies towards supporting each other.

Is there any new agreements with the International Monetary Fund, and the ministry effort in this direction?

Yes, there is a new agreement should be signed soon between us and the International Monetary Fund is called the Convention chock this agreement will allow Iraq to receive five to six and a half billion dollars in soft loans for 15 years at low interest and will allow Iraq to receive experience and training and technology.

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