Central Bank Calls on the Government to Take Advantage of Deposits Banks Instead of Borrowing From
|January 29, 2011||Filled under Uncategorized|
Central Bank of Iraq, Saturday, develop a plan for the Iraqi government was able to take advantage of the surplus in cash deposits held in banks rather than government borrowing from him, stating that the surplus is estimated at 32 trillion Iraqi dinars.
The bank adviser said the appearance of Mohammed in an interview for “Alsumaria News”, “The central bank plan makes it easier for the government to use surplus cash deposits in government banks, instead of borrowing from the central bank.”
Saleh pointed out that “the state has cash deposits in these banks is estimated at 32 trillion Iraqi dinars,” noting that “that deposits in excess and should take advantage of them, and be recycled in the fiscal budget for 2011 to provide financial liquidity to cover the fiscal deficit.”
It was the Iraqi Central Bank refused to lend to the Iraqi government the amount of five billion dollars of reserve funds to meet the shortfall in the budget, they returned the move as illegal and in violation of the independence, where law prohibits the government from imposing its policies on the Iraqi Central Bank.
He explained that the appearance of “The Central Bank has taken steps to allow the government to be used this liquidity through borrowing by allowing these banks to the acquisition of monetary policy tools.”
The Federal Supreme Court issued a decision in January 18 this provides a link independent bodies, including the central bank, headed by Prime Minister directly, not under the chairmanship of the House of Representatives, and the decision came following a request by the Office of the Prime Minister to the Federal Court on the second of December of the year the past, to show a link, which raised a controversy between Aladbd from political circles in Iraq.
As the Supreme Judicial Council affirmed that the decisions of the Constitutional Court are binding on all authorities may not appeal any of them, or dissolve the court and re-appointment of other people, pointing out that every party to consider any decision rendered by the Federal Court from the perspective of partisan or personal interests.
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