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

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/