IMF: Iraq's debt rising 64% for credit growth slowed
at 09:06 (Baghdad time)
Baghdad balances News
The International Monetary Fund, on Iraq's debt rising from 32% to 64% of GDP in the period 2014-2016, pointing to slow credit growth and rising non-performing loans to the government banks in 2016.
Held by the Iraqi authorities and experts of the International Monetary Fund (IMF) discussions in Amman during the period from 5 to 17 March 2017 on Article IV in 2017 consultations, the second revision of the agreement to prepare the credit (SBA) with Iraq, amounting to a 36-month, which was approved by the Executive Board the international Monetary Fund on July 7 2016.
It aims to prepare the credit agreement to correct the fiscal balance and the balance of the external position, and improving public financial management, while protecting social spending. The first review was complete under the standby credit agreement on 5 December 2016.
The head of the IMF mission to Iraq Christiaan coconut in a statement received / scales News / copy of it, that "Iraq is affected severely affected by the conflict with the organization Daesh, the sharp decline in world oil prices since 2014".
He added Coconut, "the government has responded to the fiscal crisis, and the crisis of the balance of payments, a large correcting financial, but it is necessary, supported by financial assistance from the international community. In 2016, continued real growth of GDP by 11%, supported by a substantial increase in oil production, which benefited from previous oil investments. "
He continued, "With this, the contraction of the non-oil economy by 8% due to the conflict and to correct public finances. In 2017, it is expected to remain economic activity subdued due to reduced oil production by 1.5% under the agreement reached by the Organization of Petroleum Exporting Countries (OPEC ), and the modest recovery of the non-oil sector. "
He pointed out that, "caused a sharp decline in oil prices down total international reserves of Iraq from US $ 53.7 billion at the end of the year 2015, the level is still comfortable, the amount of US $ 46.5 billion, at the end of December 2016".
And between the head of the mission, that "the pressures faced by the public finances remain large, with the government deficit remains at the level of 12% of GDP in 2016, due to continued weakness in oil prices, rising humanitarian and security spending."
He pointed nut, that "an increase in total public debt from 32% to 64% of GDP in the period 2014-2016, in addition to slowed credit growth and rising non-performing loans to the state-owned and private banks are large banks in 2016".
However, saying: "Keep the authorities on the exchange rate peg, which is an important nominal pillar," persisting "growth prospects remain in the medium term modest because of the expected oil production stability, and the stability of its investments in the face of constraints on revenue and recovery modest in non-oil growth, supported by the improvement expected in the security situation and the implementation of structural reforms ".
And it went on, "there is a need for more reforms to create fiscal space inclusive growth, and enhance the business environment, reduce corruption, and reform of the banking sector to support growth led by the private sector, and diversification of the economy, as soon as the reconstruction process starts in the post-organizing Daesh" .
He explained that "the risks remain high; this stems primarily from the uncertainty surrounding the prospects for oil prices, the security situation and political uncertainty, and citizen management weaknesses."
He continued, "The Iraqi authorities and experts of the International Monetary Fund began discussions on the second review of the agreement to prepare the credit," explaining that "discussions will continue during the upcoming spring meetings of the International Monetary Fund and the World Bank in the period between 21 to 23 April 2017 in Washington, DC" .anthy