Iraq withdraw from its reserves

Iraq withdraw from its reserves

05.05.2015 12:06

Iraq withdraw from its reservesBrother – Baghdad
Director of the Middle East and Central Asia Department announced at the International Monetary Fund Masood Ahmed, Tuesday, that Iraq’s request financial assistance from the Fund, and as he emphasized that an agreement may be a loan of about $ 800 million in a matter of weeks, pointed out that Iraq has begun to withdraw from its reserves.
Ahmed said in a statement to “Reuters”, that “Iraq’s request for financial assistance from the Fund,” noting that “competent committees in this regard will work in the coming weeks, we hope to reach an agreement relatively soon.”
Ahmed said, “It is likely to submit the loan through rapid funding mechanism will be relatively small at about $ 800 million,” explaining that “Iraq has begun to withdraw from its reserves and is likely to grow slightly after the economy contracted 2.4 percent in the record” in 2014.
And between, that “the Finance Minister Hoshyar Zebari and Prime Minister Haider al-Abadi fully aware that there is a problem, and are committed to finding a solution within the constraints they face.”
And it established the IMF rapid funding to provide financial aid and urgent advice on economic policies of the Member States that need urgent aid to adjust the balance of payments mechanism, according to the website of the IMF loan is repayable submitted by the rapid funding mechanism over a period of between 40 to 60 months.
The loan has been paving the way for Iraq to get larger loans from the Fund pack when needed but such loans may require greater commitments on economic policies adopted.
Last week, Finance Minister Hoshyar Zebari said Baghdad will seek to obtain a credit rating sovereign to facilitate the issuance of bonds, and the government in the process of application procedures or working on the preparation procedures include asking bonds in local currency to the banks and the imposition of taxes on some consumer goods or cut public sector wages.

khabaar.net