IMF hints large loan for Iraq condition removal of fuel subsidies
IMF hints large loan for Iraq condition removal of fuel subsidies
2015/11/11 9:22
[Follow-where]
the IMF announced it had agreed with the Iraqi government that the Fund monitors the economic policies as the basis for a possible large financing program in 2016.
The head of the IMF mission to Iraq Christian Gooch in a statement that the two sides agreed on a monitoring program to experts Fund aims to curb spending and reduce the deficit in the budget of Iraq which is expected to close to 12 percent of next year’s economic activity.
“Gooch added that the move” will allow Iraqi authorities built a track record for the potential deal for financing with the Fund.
“He noted that the IMF is expected to gross domestic product of Iraq recorded growth of 1.5 percent this year due to increases in oil production and the deficit rise in the current account balance to 7 percent of GDP .
He predicted that “Iraq’s foreign exchange reserves -alta amounted to $ 59 billion at the end of the previous month, will fall but will remain at a level sufficient to cover nine months of imports.”
It is said that to get a loan from the International Monetary Fund will help OPEC member Iraq stabilize the financial to the conditions while suffering because of falling costs in oil prices associated with fighting organization Daash terrorist.
A senior IMF last month and reported that the new loan for Iraq will be the largest “several times” of the emergency funding of $ 1.24 billion, the Fund has agreed to be submitted in July.
and became the financial pressure on Iraq heavy so that the Baghdad suspended a plan to issue international bonds worth two billion dollars last month, because investors were demanding a yield is very high.
Any large loan from the IMF for Iraq will come the terms of such steps from Baghdad to cut energy subsidies [include fuels and fuel such as benzene and other and the reform of state-owned enterprises which steps may be difficult at the political level.
Iraq was represented by the Ministry of Finance had on Tuesday signed with the International Monetary Fund memorandum of understanding conducive to monitor the financial and economic policy, for the remainder of fiscal year 2015 and for the year to come
2016, said Finance Minister Hoshyar Zebari During a press conference after the signing, which took place in the Jordanian capital Amman, said the agreement with the Fund “resulted in a loan of $ 1.2 billion Fund for Iraq submitted before the end of this year, except for its impact in improving the classification of Iraq in front of international institutions reducing interest rates on the seminal bonds put on the market .
Zebari denied that “have to agree any consequences for the employees’ salaries and social benefits provided by the government or aid paid to the displaced people,” declaring that the government will be issued next year, 2016 bonds worth seven trillion dinars to fill the budget deficit -albalg about 22 trillion Danar- will be five of them put in the local market and the rest in the international market.
“For his part, the Chairman of the Fund’s mission in Iraq, Christian Gooch elements of the agreement with Iraq, said the Iraqi authorities and under the [financial and economic policy surveillance program], which begins the end of 2015 will implement the correct process to contain public spending in line with revenues and funds available.
And the purpose of debugging said Gooch he aims to cut non-oil first by 4 percent of the total non-oil GDP to the end of the period of 2014-2016 in the framework of the program, which also includes measures to support the public finances and the other to achieve financial stability and the fight against money laundering and financing terrorism .anthy
alliraqnews.com
