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IMF praises Iraq actions for comprehensive economic development

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IMF praises Iraq actions for comprehensive economic development

Since 2017-08-14 at 18:07 (Baghdad time)
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The IMF commended the Government's actions aimed at achieving comprehensive economic development by adjusting spending and reduced investment promotion and private sector orientation as well as serious steps towards maximizing non-oil revenues to avoid or reduce the budget deficit by moving away from dependence on oil as an essential resource for the balance,

but the box revealed through indicators on the overall financial and economic situation in Iraq for the period from 2013 until 2022 arrival public debt to Iraq to 122.9 billion dollars what constitutes 63.8% of GDP, expecting to reach public debt by 2018 to 132.4 and continues according to the expectations of the Fund until 2022 by 132.9.

Fund and by evaluating the executives on the sidelines of the closing of the Executive Board of the article IV consultation with Iraq, welcomed the Iraqi Government's policies to deal with my shock of armed conflict with the terrorist organization of ISIS and the resulting humanitarian crisis of tide and its repercussions, as well as a second shock of falling crude oil prices.

The Fund confirmed that the growth prospects in Iraq positive over the medium term, with growth driven by the average increase in oil production, which is expected to be, recovered and non-oil growth with the support of the expected improvement in the security situation, and implement structural reform measures.

Executives praised financial exactly in 2016, although slower than in the program because of weak monitoring of investment spending and spending pressures imposed by the military campaign against the Organization of ISIS and assistance to internally displaced persons and refugees, where most managers welcomed this financial control by reducing inefficient capital spending while protecting social spending.

Directors also welcomed the adoption of the supplementary budget for the year 2017 and the Government's commitment to further austerity measures in 2017-2018 to keep the program on its decision and ensure the safety of foreign status and maintain a sustainable level of debt within,

and stressed the need to create fiscal space to enhance human capital and rebuild physical capital in the country, addressing the low level of non-tax revenue and the high level of public consumption to create fiscal space to finance investments to support growth.

He drew the box to fit the Government's actions which were capable of maintaining a peg to the US dollar,

stressing that with the Central Bank to streamline documentation requirements,

exchange rate differentials narrowed compared to the parallel market to 6% in June 2017.

Fund and assessing the overall economic and financial conditions in Iraq confirmed that although performance under the standby credit agreement was weak in some key areas, they have been reaching understandings about corrective action sufficient to keep the program on track.

Against this background, Directors urged to persevere in the implementation of the programme authorities, including

continuing efforts to adjust public finances and strengthen the financial sector, and

structural reforms to promote private sector activity and improving the business environment.

To enhance stability in the financial sector, Directors urged the Government to take measures to strengthen oversight, and

proceed to implement restructuring plans for State-owned banks which dominate the banking system, and

urged it to strengthen the legal framework for the Central Bank, and

cancel the remaining restriction on Exchange and practice of multiple exchange rates and

accelerate the implementation of measures to combat money laundering and the financing of terrorism and the fight against corruption.

Managers felt that the US dollar peg system, which forms the backbone of the economy, is still an adequate system.

Managers also stressed the importance of implementing structural reforms to improve the investment climate and economic diversification and sustainable growth.

They urged the authorities to undertake a comprehensive reform in public finance management, including complete regular inventory and payment of arrears and improve the commitment of expenditure and cash management to prevent the accumulation of new arrears.

Managers also stressed the importance of addressing weaknesses in administrative capacity and data availability.

In addition, the implementation of the budget-sharing agreement between the Federal Government and the Kurdistan Regional Government would put Governments in a better position to deal with shocks.

International Monetary Fund revealed by indicators on the overall financial and economic situation in Iraq for the period from 2013 until 2022 arrival public debt to Iraq to 122.9 billion dollars accounts for 63.8% of GDP, expecting to reach public debt by 2018 to 132.4 and continues according to the expectations of the Fund until it reaches 132.9 through 2022.
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