Iraq is seeking to apply for a loan from the International Monetary after the deficit
Iraq is seeking to apply for a loan from the International Monetary after the deficit estimate by about $ 25 billion
05-05-2015 01:30 PM
The IMF said that Iraq’s request financial assistance, and it may be agreed a loan of about eight hundred million dollars in a matter of weeks. The director of the Middle East and Central Asia Department Fund Masood Ahmed will work committees in this regard in the coming weeks .. hope to reach an agreement in time relatively recently. He explained Ahmed is likely to submit the loan through rapid funding mechanism, has been Fund has established rapid funding to provide financial assistance and advice urgent economic policy of the Member States that need urgent aid to adjust the balance of payments mechanism. The loan is repayable submitted by the rapid funding mechanism period between forty to sixty months. The financial situation of Iraq severely worsened by the collapse of oil prices since last year, as well as Daash attacks. The government projected a deficit of about $ 25 billion this year’s budget in sizes up to about a hundred billion. The IMF loan will contribute in easing pressures and help the government measure funding from other sources by enhancing investor confidence. Baghdad has said it plans to issue five billion dollars in bonds, which is the first international version nine years ago. could pave the loan way to get Iraq on larger loans from the International Fund for when you need a package, but such loans may require greater commitments on economic policies adopted. In the week past, Finance Minister Hoshyar Zebari said Baghdad will seek to obtain sovereign credit rating to facilitate the issuance of bonds. The government is about application procedures or working on the preparation procedures include asking local currency bonds to banks and the imposition of taxes on some consumer goods or cut public sector wages.