Finance tracks correct raise the confidence of the IMF in Iraq

17/10/2016 0:00

Oman / follow-up to the morning
He said Christian nut, head of the IMF mission to Iraq that the latter made good progress towards the completion of the first review of the standby credit agreement, which provides financial support for Iraq during the next three years.

Once you provide the additional information required and the implementation of the agreed prior actions, the Executive Board will consider the first review of the standby credit agreement, which is likely to be during the next two months.

And resulted in the International Monetary Fund team talks with the Central Bank and Ministry of Finance and the appearance of Dr. Mohammed Saleh, the financial advisor to the Prime Minister, and a representative of the Kurdistan Regional Government for approval by the IMF Executive Board on the agreement credit to get ready with Iraq worth 3.831 billion and SDR (about 5.34 billion US dollars, or 230 percent of the share of Iraq) to support the government's economic reform program. And to prepare the credit provides financial assistance to low-income countries facing balance of payments financing needs or short-term possibility.

The aim of economic reform, which is supported by the standby credit agreement to meet the needs of urgent balance of payments program, and access spending to a level consistent with the decline in world oil prices, and to ensure the survival of religion within the limits can continue to afford it. The program also includes measures to protect the poor, strengthening financial management, and to support the stability of the financial sector, curbing corruption and implementation of these policies will require the availability of support from the international community.

And allow the Board's approval and disbursement 455 million SDR (about 634 million US dollars) to Iraq.

Iraq had happened in July 2015 on a payment equal to 891.3 million and SDR (about 1.24 billion US dollars the time of approval) through the «rapid financing instrument».

Senior management of the Fund as well as completed the first and second of the program watched by experts of the Fund and approved by Ms. Director General of the Fund in the January 12, 2016 revisions.

Following the Executive Board's decision, a statement issued by the Zhu, Deputy Director General and Chairman of the Board on behalf of the saying «the Iraqi economy suffered great damage as a result of the double shock caused by the organization« Daesh »attacks and the sharp decline in world oil prices.

The statement said the government has developed appropriate policies to deal with the trauma. In the area of ​​public finance, the Iraqi government to correct the large fiscal focuses mostly on reducing capital expenditures inefficient while protecting social spending, and provide funding. In the outer area, the authorities continue to peg to the US dollar, a system that allows a key pillar of the economy.

«Envisaged fiscal adjustment for the period 2016-2019 and is an appropriate correction to address arising from the decline in oil revenues and high spending on humanitarian and security needs pressures. But fiscal adjustment elements should be improved gradually, to allow greater and more efficient investment spending. It is necessary to conduct a comprehensive reform of the system of public financial management in order to improve fiscal discipline and raise the quality of spending. »

He «The implementation of the budget-sharing with the KRG to improve and the Kurdistan Regional Government put the federal government to allow them to cope with the shock and oil prices« Daesh »attacks agreement.»

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