Official: IMF Iraq could give a big loan in 2016

Khandan - A senior official at the International Monetary Fund announced that the Fund may give Iraq a large loan in 2016 to help him achieve financial stability at a time when Iraq is suffering because of falling oil prices and the war against al "Daash" terrorist. Said Masood Ahmed Director, Middle East and Central Asia Department at the IMF, he said that a team from the Fund will discuss with Iraqi officials early next month ways of setting up a program to monitor the Fund's experts Baghdad in which the economic policies of the country. Ahmed said in remarks reported by the agency (Reuters) "We hope to build a record for the application of policies as the basis for another program funding from the International Monetary Fund later in 2016." He pointed out that the new IMF loan would be a "fold" emergency financing fund that it approved in July this year, which was worth $ 1.24 billion. And it exacerbated the financial pressure on Iraq until Baghdad was forced to stop the plan to issue bonds in the international two billion dollars earlier this month because investors demand a very large yield. And the face of a new version cancel a blow to government efforts to finance the deficit in the budget expect to reach 25 billion dollars this year in the budget is estimated at about $ 100 billion. Ahmed said that Baghdad is not currently in danger of running out of cash because they can postpone investment projects and rely on central bank financing if necessary. But he said the government needs to develop a clear and comprehensive plan to reform its finances, although the International Monetary Fund program may help in this. There will come a large loan from the IMF conditions related to economic policy, including the steps taken by Baghdad to cut energy subsidies and the reform of state-owned enterprises, moves may be politically difficult. Ahmed said he believed that the desire to move forward with reforms to the authorities but stressed that any changes in policy should be "sustainable socially and politically" and then the IMF would not seek to impose options. He noted that "Iraqi Prime Minister and Minister of Finance and the Governor of the Central Bank are all aware that they need to take difficult decisions."