The agreement with the International Monetary Fund improves the credit rating of Iraq

Baghdad / Imad Al-Amara To pay the budget deficit in 2017, the government has asked the International Monetary Fund and other international parties to borrow from them, taking advantage of the global trend to support Iraq in the fight against terrorism.

 Economic academic d. "The International Monetary Fund called on Iraq to carry out a major correction is to reduce capital spending while protecting social spending and connect the Iraqi dinar to the dollar, which provides a cornerstone of the economy."

He said: The Iraqi economic reform program, With the International Monetary Fund, to address the urgent balance of payments needs and to reach the level commensurate with the decline in international oil prices and ensure the sustainability of debt within sustainable limits.

The program also includes measures to protect the poor and strengthen the management of public finances Meh and support the stability of the financial sector and curb corruption.

 He said that Iraq has complied with the requirements of external credit.

It should gradually improve the elements of financial adjustment, pensioners' salaries, reform of the electricity sector and state-owned enterprises to allow for greater investment spending, but more efficient and efficient in order to support growth.

"The IMF Executive Board has agreed to implement the three-year credit agreement with Iraq, which aims to help Iraq implement the economic reform program and restore the balance of finance over the medium term," he said.

 Al-Rawi confirmed that the agreement with the International Monetary Fund will help the issuance of international financial bonds and improve the credit rating of Iraq in financial institutions, and the agreement with other countries to obtain loans, has authorized the General Budget Law 2017 Minister of Finance to sign agreements with creditors that have already approved Parliament to finance the budget deficit of 7.21 trillion Iraqi dinars, equivalent to 319.18 billion.

 The Executive Board of IFAD also completed a review of the funding confirmations under the Credit Readiness Agreement, and the Executive Board approved the SDR 831.3 billion Special Drawing Rights (SDR) agreement, or about $ 34.5 billion at the date of approval. Al-Rawi confirmed that under this approval, Iraq may disburse 455 SDRs, or about 8, 817 million dollars.

 The Executive Council also approved Iraq's request to exempt it from declaring non-compliance with the maximum limit for external savings and requesting amendment of performance standards.

 Iraq from the condition that the objectives of the end of September to meet the four performance standards related to the minimum total international reserves and the maximum net domestic assets of the Central Bank of Iraq and the maximum existing savings due to international oil companies and maximum balance of the total public debt , In addition to the request to amend the stages of implementation of the Agreement, it was agreed to hold meetings to follow up on the standby credit between the Fund and Iraq.

 In another meeting in Amman between Iraq and IMF experts to follow up the credit readiness, the IMF pointed out in its closing statement that Iraq is under financial pressure as a result of increasing public and security spending in return for the continued weakness of oil prices, causing a deficit of 12 percent of gross domestic product, To the central bank from 53.7 billion dollars in 2015 to 46.5 billion dollars by the end of 2016, and described the statement of the Fund value of the financial reserve of the Central Bank of Iraq in a comfortable position.

 The IMF pointed out in a statement that the public debt of Iraq increased by 32 to 64 percent of GDP during the period 2014-2016, which requires more structural reforms in the Iraqi economy, including reform of the banking sector to support the process of growth and strengthening the business environment and reduce the Corruption, the IMF estimated that the risks remain because of the uncertainty of oil prices and security and political instability and weaknesses in the administrative aspects.

 The agreement with the International Monetary Fund (IMF) is expected to improve confidence in Iraq and get more financial aid from institutions and creditor nations.

 The deal will provide additional $ 15 billion in international aid to Iraq, as well as easing Iraq's debt burden. Paris Club.

http://www.imn.iq/archives/167613