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Iraq agrees to monitor the program of the IMF as a precondition for loan

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Iraq agrees to monitor the program of the IMF as a precondition for loan

NOVEMBER 11, 2015

BAGHDAD (Reuters) - International Monetary Fund said in a statement it agreed yesterday with the Iraqi authorities that the Fund monitors Baghdad's economic policies, as a basis for the program of potential funding in 2016.
Said Christian Gooch, head of the IMF mission to Iraq, the two sides agreed on a monitoring program to experts Fund It aims to curb spending, reduce the budget deficit in Iraq, which is expected to close to 12 percent of gross domestic product next year. He added that this step «would allow Iraqi authorities to build the course in order to record a possible deal for financing with the Fund.»
And to get a loan from the International Monetary Fund will help the country a member of the «OPEC» Organization to stabilize financial conditions, while suffering as a result of falling oil prices, and costs associated with fighting militants organization «Islamic State».
He was a senior official in the IMF had said last month that the new loan will be the largest «several times» of emergency funding, of $ 1.24 billion, the Fund has agreed to be submitted in July.
and became the financial pressure on Iraq's heavy, so that 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 conditions, such as reducing energy subsidies, and the reform of state-owned enterprises, the steps may be difficult at the political level.
and find a prime minister Haider al-Abadi already difficult to maintain the support for political reforms announced in August / August aimed at reducing corruption and waste.
He said Gooch said the IMF expects GDP to Iraq grow by 1.5 percent this year, due to increases in oil production, and that the deficit in the current account rising to 7 percent of GDP.
He predicted that Iraq's foreign exchange reserves - which totaled $ 59 billion at the end of the previous month, will decrease, but will remain at a level sufficient to cover nine months of imports.
... And it intends to sell a fourth license for mobile communication
Dubai / Baghdad (Reuters) - the website of the body of the Iraqi Communications said publication that the Authority intends to sell a fourth license for mobile phone, in a move that will increase competition in the market already suffering from the erosion of revenues and disruptions of service because of the war.
Identified CMC Nov 20 / second the current deadline for submission of Expressions of interest in the license which a 15-year-old, according to the document that was found on Wednesday.
and paid each of the three mobile companies operating in the country, a «Asiacell» subsidiary »I want» Qatar, and »Zain Iraq» and » Cork », $ 1.25 billion in exchange for their licenses amounting to a 15-year-old in 2007, and then $ 307 million of additional peer-spectrum necessary for the launch of third-generation services in earlier this year.
It will be the fourth license is neutral in terms of technology, which means that the buyer will not pay additional charges Like the other three companies.
The document said that he will have three companies some infrastructure sharing facilities with the new operator to help speed the launch of the service.
Iraqi telecommunications market and that have a promising opportunities, in light of the relatively low prevalence level of service as a according to the document 95 percent compared with the 180 percent in Saudi Arabia.
But «Asiacell» and »Zain Iraq» performance in the recent period paints a darker picture, where operations have been adversely affected due to the intense and high-cost competition, and disruptions of service in areas controlled by the organization «Islamic State».
The average income of « Asiacell »per user - an important indicator for the sector - 38.4 QR (US $ 10.55) in the third quarter of 2015, down by a fifth for the second quarter of 2014
as well as the drop in net profit« Zain Iraq »54 percent on an annual basis in the nine months to September 30 / September to $ 102 million.
A source in the Iraqi telecom sector that the fourth license campaign faced difficulties in most markets, not to mention the war-torn country, and expected that the buyer wants to pay for much less than the other three mobile phone operators.

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