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IMF: Iraq's foreign exchange reserves is enough to cover the 9 months of imports

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IMF: Iraq's foreign exchange reserves is enough to cover the 9 months of imports

November 11, 2015

Baghdad/Iraq News Network-the International Monetary Fund said it had agreed with the Iraqi Government to oversee fund their economic policies as a basis for significant funding programme in 2016. The head of the IMF mission to Iraq Christian Gooch said in a statement that the two sides had agreed on IMF surveillance program aims to curb spending and reduce the deficit in the budget for Iraq which is expected to be nearing 12 percent of economic activity next year. " Gooch said that the move "will allow Iraqi authorities to build a track record for possible funding agreement with the Fund. He noted that the IMF is expected to record a GDP of Iraq grew 1.5 percent this year owing to increases in oil production and the rising deficit in the balance of current transactions to 7 percent of GDP. He predicted that "Iraq's foreign exchange reserves--which stood at 59 billion dollars at the end of last month-will fall but will remain at a level sufficient to cover nine months of imports." Reference is made to obtain the loan from the International Monetary Fund would help OPEC member Iraq to stabilize financial conditions, while plagued by falling oil prices and the costs associated with fighting the terrorist organization daash. A senior official told the IMF last month that the new loan to Iraq would be "several times" of grave emergency funding of $ 1.24 billion Fund agreed to surrender in July last year. And became the financial pressures on Iraq until Baghdad heavy suspended plan to issue international bonds worth $ 2 billion last month because investors were demanding very high return. And any big loan from the IMF would llara conditions such as Baghdad steps to lower energy prices (including fuel and fuel as gasoline and other) and the reform of State-owned enterprises and steps may be difficult politically. Iraq was represented by the Ministry of Finance on Tuesday signed with the IMF memorandum of understanding conducive to the control of financial and economic policy for the remainder of fiscal year 2015 and coming year 2016. And Hoshyar Zebari, the Finance Minister said at a press conference after the signing, which took place in Oman that the agreement with the IMF "led to a $ 1.2 billion Fund for Iraq before the end of the year, apart from its impact on improving the classification of Iraq before international institutions would reduce the interest rates on the bond market in the semen. Zebari denied that "any agreement have implications for staff salaries and social benefits provided by the Government or the aid to displaced persons," declaring that the Government will issue next year 2016 bonds worth seven trillion dinars to bridge the budget deficit – about 22 trillion dinars, five of which will be raised in the domestic market and the remainder in the international market. " For his part, showing the head of the IMF Mission in Iraq Christian Gooch elements of the agreement with Iraq and said that Iraqi authorities under the control of economic and financial policies which begins end of 2015 will be implemented debugging process to contain public spending in line with revenues and funds available. And the end of correction, said Gooch that it aims to cut spending first non-oil by 4 percent of non-oil GDP for the end of the period of 2014-2016 under a program that also includes measures to support public finance and to achieve financial stability and combating money-laundering and the financing of terrorism.

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