Agreement with the IMF improves Iraq's credit rating

13/6/2017 12:00 am

Baghdad / Emad Al-Amara
In order to pay off the deficit in the 2017 budget year, the government asked the IMF and other international bodies to borrow them taking advantage of the global trend to support Iraq in the fight against terrorism.

Economic academic d. Ahmed Omar al-Rawi said the "morning": The International Monetary Fund called on Iraq to conduct a large correction process is to cut capital spending while protecting social spending and communication in linking the Iraqi dinar to the dollar that provides a basic foundation for Aguetsad.oadav: The aim of the Iraqi economic reform, which is supported by the standby program credit with the international Monetary Fund, to address the needs of the balance of payments and urgent access to the spending level commensurate with the decline in world oil prices and ensure the sustainability of the debt within the tolerable, the program also includes measures to protect the poor and the strengthening of financial management a And its support for 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 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 financial
Average.

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 Budget deficit of 7, 21 trillion Iraqi dinars equivalent to 319, 18 billion dollars.

The Executive Board of the Fund also completed a review of the funding confirmations under the Credit Readiness Agreement, and the Executive Board approved the agreement of $ 831.3 billion Special Drawing Rights (SDR), approximately $ 34.5 billion
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, and it was agreed to hold meetings to follow up the credit standing 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, and the International Monetary Fund estimated that the risks remain because of the uncertainty of oil prices and security and political instability and weaknesses in the aspects
Admin.

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. club
Paris.

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