IMF economic program for the application of a three - year requirement includes "protect" the poor and "curb" corruption

Views 587 Added 23/05/2016 - 18:01

BAGHDAD / Economy News ...

He assured the International Monetary Fund, to lend Iraq will be part of an economic program for the three-year requirement of completion of the macroeconomic framework and guarantees of funding, and revealed that the program includes "measures" to protect the poor and support the stability of the financial sector and the "curb" corruption, with the exception that the Iraqi government "worthy" to obtain on the loan, and guessed that its Executive Board to consider the agreement during the month of June or July next.

The International Monetary Fund said a panel of experts, said that the Iraqi authorities and experts of the International Monetary Fund reached an agreement at the expert level on the request for an agreement to prepare the credit duration of 36 months, "noting that" Iraq will receive under this agreement, which is subject to the approval of the Executive Council Fund credit from the fund worth up to 3.894 billion and SDR, or about $ 5.4 billion. "

The statement added that "it will be subject to completion of the macroeconomic framework and guarantees of funding," noting that "the willingness credit the previous agreement with Iraq was worth 3.7 billion US dollars equivalent to 200% of Iraq's share in the fund, which was approved by the Fund in February 2010, and it expired in February 2013. "

The panel of experts, that "Iraq exchange in July of 2015 in the framework of its resources (rapid financing tool) $ 1.2 billion."

The statement quoted the head of the IMF mission to Iraq Cristian coconut as saying that "Iraq was severely affected by the conflict with Daash and the sharp fall in oil prices, and still armed conflict with al Daash put pressure on the country's resources and lead to an influx of new waves of internally displaced people even now their numbers reached more than 4 million people. "

He coconut, that "the sharp decline in oil prices also cause a large external shock in the balance of payments and revenues of the budget that relies primarily on oil export revenues," stressing that "the agreement was to meet urgent needs in the balance of payments between the Iraqi authorities with the IMF experts on a program of economic and financial policies for three years to achieve compatibility between spending and the level of low oil prices, and ensures the continuity of debt sustainability. "

Coconut and pointed out that "the program also includes measures to protect the poor, strengthening public financial management, and to support the stability of the financial sector, and curb corruption," he returned to "Iraqi authorities worthy of obtaining the support of the international community in the implementation of these policies."

The head of the mission, said: "The Executive Board of the International Monetary Fund could be seen in standby credit agreement for three years in the month of June or July, once the completion of the implementation of the agreed prior actions." The statement said, "The mission team met with Finance Minister Hoshyar Zebari and Iraqi Central Bank Governor acting on the Keywords, financial advisor to the Prime Minister Saleh appearance, and a group of officials from the finance, oil, planning and electricity Iraqi Central Bank and the ministries, and representatives of the Kurdistan Regional Government, and the Office of Financial Supervision national retirement and body, "advance" Thanks to the Iraqi authorities on the good cooperation and discussions frank and fruitful during the mission. "

The Economic Adviser to the Prime Minister and the appearance of Mohammed Saleh revealed, in the (19 May 2016), that the approval of the International Monetary Fund for lending to Iraq required to reduce the public budget expenses by about 13 trillion dinars and the placement of "senior staff" allocations to settle the dues of oil companies income tax, and noted that the conditions also included the exception of the armed forces and junior staff of the income tax provisions, as he emphasized that the loan will open the door for loans from industrialized nations worth more than $ 15 billion.

The Finance Minister Hoshyar Zebari announced that, in the (19 May 2016), to reach an agreement with the World Bank Fund for a loan worth $ 5.4 billion, and as pointed out that the loan will allow securing additional financial assistance to reach about $ 15 billion over the next three years , Governor of the Central Bank of Iraq, on the Keywords confirmed that the annual interest rate of the loan is up to 1.5%.

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