$ 20 million annual profit of the Iraqi External Contributions Fund


The Director General of the Fund for the Development of Foreign Affairs Hussein Jaber, the annual rate of profits of the Fund from external contributions range between 18 million and 20 million annually, while the Fund does not exceed the staff of 1.7 million dollars a year , revealing the existence of efforts to resolve the Fund amid parliamentary opposition calls for Support and increase its capital.

Jaber said in a statement that the Fund has since its inception granted development projects medium and long term loans to developing Arab countries on concessional terms and to contribute to development projects, especially those of an Arab economic integration nature.

Developing economic development processes in Arab developing countries, providing expertise and cooperation with Arab and international development funds.

He stressed that the Fund plays a very important role, especially in light of the current circumstances in which Iraq is going through, including the financial crisis, and know the size of Iraqi funds invested abroad, but there are those who raise the issue of the solution of the Fund and attached to one of the departments of the Ministry of Finance, considering that Iraq has no investments big.

Jaber pointed out that the fund was established for the purpose of development lending. The aim was to invest oil surpluses with simple benefits and long terms of up to 25 years and a grace period of 5 to 7 years before the initial payment.

The first loan was granted in 1974 and the latter in 1982. The capital was increased through contributions The Ministry of Finance in five other international funds turned into the Iraqi Fund and estimated at 750 million dollars.

He pointed out that the capital of the Fund is currently $ 1.5 billion, and we seek to revalue the assets and we have only the proceeds from our external contributions.

As for the type of investments carried out by Iraq, Jabir said: "Foreign investments are restricted according to the state in which we contribute.

There are investments in the Kuwaiti dinar, the dollar, the Jordanian dinar and the Sudanese pound. When we calculate their revenues, they turn to the dollar and then to the Iraqi dinar.

He stressed that Iraq after 2003 did not contribute to foreign investments, and closed all internal and external accounts and proceeds go to the Ministry of Finance or to the Development Fund for Iraq, while the revenues accumulate in the account of the Ministry of Finance to exceed 200 million dollars.

The salaries of the staff of the Fund are in the form of grants from the Ministry of Finance, and in 2014 opened a new account of the Fund began to add proceeds and amounted to about 50 million dollars deposited in the Iraqi Trade Bank, and this liquidity can be invested.

Jaber pointed out that the Fund contributes to 30 companies internally and externally, 21 profitable companies and 3 losing companies, and there are troubled companies and contributing countries trying to remove Iraq from the projects that contribute.

The Fund was established in 1974 as a financial institution with a moral personality and financial and administrative independence, with a capital of 50 million Iraqi dinars then (42.7 thousand dollars), gradually increasing in 1980 to 200 million dinars.

The objectives of the Fund include setting the general policies for investing the funds of the Fund, determining the contribution to the development projects and programs, approving the terms of the loans, determining what the Fund takes for its account and following up Iraq's multi-lateral and bilateral financial and foreign relations, and managing its contributions to the international, regional and Arab organizations, funds, Relates to external and tax agreements with outside countries.