The agreement with {IMF} improves the credit rating of Iraq

The agreement with {IMF} improves the credit rating of Iraq

6/13/2017 0:00

Baghdad / Emad emirate
to pay off the deficit in the 2017 budget the government requested from 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 allowing a pillar of the economy. He added: Iraqi economic reform, which is supported by the standby credit with the International Monetary Fund program aims to address the needs of the balance of urgent payments and access spending to a 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 public support for the stability of the financial sector and curb
corruption.
The transfer of the narrator of the report by the IMF in his report by saying that Iraq is committed to the requirements of readiness external credit and should be implemented gradually improve the fiscal adjustment and the salaries of retirees and repair of electricity and state – owned enterprises sector elements to make way for greater investment spending, but more effective and efficient to support growth.
He continued Narrator: by the Executive Board of the IMF has agreed to implement readiness credit agreement signed with Iraq for a period of three years , a pact aimed at helping Iraq in the implementation of the economic reform program and restore fiscal balance in the long
average.
Rawi confirmed that the agreement with the International Monetary Fund will help to issue international financial bonds and improve Iraq ‘s credit rating in financial institutions, and the agreement with other countries to get loans, it has authorized the general budget for the year 2017, Minister of Finance Act signed agreements with creditors already and parliament agreed to finance the budget deficit of 7.21 trillion Iraqi dinars , equivalent to 319.18 billion.
IMF Executive Board also completed a review of financing assurances under the standby credit agreement, and the Executive Board had approved its $ 831.3 billion rights unit to withdraw any special agreement estimated to be 34, $ 5 billion at the date of
approval.
Rawi confirmed that under this consent for Iraq may be 455 units exchange special drawing rights , about 8817 million dollars as the Executive Council also agreed to Iraq ‘s request to be excused from the declaration of non – compliance with the maximum continuous external arrears and the request to amend the performance standards, as the Council approved the request to exempt Iraq from the applicability of the goals of the end of last September to four performance standards regarding the minimum total international reserves and the maximum net domestic assets of the Central Bank of Iraq and the maximum arrears owed to the list of international oil companies and the maximum balance of total public debt requirement , 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.
At the last meeting in Amman between Iraq and experts of the International Monetary Fund to follow up the readiness of the Trust Fund noted in his closing statement that Iraq is under financial pressure as a result of growing public and security spending for continued weakness in oil prices , causing a deficit of 12 percent of gross domestic product, which led to a decline in financial reserves Central Bank of $ 53.7 billion in 2015 to $ 46.5 billion the end of the year 2016, described the Fund ‘s statement of financial reserves of the Central Bank of Iraq as the value in a comfortable position.
He said the IMF said in a statement that the public debt of Iraq increased rate of 32 to 64 percent of GDP during the period 2014-2016 requires further structural reforms in the Iraqi economy, including the banking sector reform to support the growth process and to promote business and reduce environment corruption, the IMF estimated that the risks remain as a result of the uncertainty of oil prices and the lack of security, political stability and weaknesses in aspects of
management.
The expected credit agreement with the International Monetary Fund to improve confidence in Iraq and get more financial aid from institutions and creditor nations, and will agree to provide additional international assistance to Iraq worth $ 15 billion , as well as some of the facilities , including helping Iraq to ease the burden of repayment obligations with Club
Paris.

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