The statement issued at the conclusion of the IMF mission on Iraq

Business & Finance

Economy News / Baghdad ...

Iraqi authorities and experts of the International Monetary Fund held (IMF) discussions in Amman during the period from 5 to March 17 / March 2017 on Article IV of the 2017 consultations, and 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 of the international Monetary Fund on July 7, 2016. It aims to prepare the credit agreement to correct the balance of public finances and the balance of the external position, and improving public financial management, while protecting social spending. It was the first complete review under the Stand-By Agreement on 5 December / December 2016.

Mr. Christian nut has been made head of the IMF mission to Iraq the following statement:

"Harmed Iraq affected severely due to the conflict with al Daesh, and the sharp drop in world oil prices, since 2014. The government has responded to the fiscal crisis, and the crisis in the balance of payments, large corrects Mali, but necessary, supported by financial assistance from the international community. In 2016, the real growth of the gross domestic product by 11%, supported by a substantial increase in oil production, which benefited from previous oil investments continued. However, non-oil economy has shrunk by 8% due to the conflict and fiscal adjustment. In 2017, it is expected that economic activity remains 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. "

"The sharp decline in oil prices, down Total international reserves of Iraq, from 53.7 billion US dollars has caused the end of 2015 to a level still comfortable, of $ 46.5 billion, at the end of December / December 2016 remains the pressures on public finances, including large , with the government deficit remains at a level of 12% of GDP in 2016, due to continued weakness in oil prices, high humanitarian and security spending. Total public debt rose from 32% to 64% of GDP in the period 2014-2016. And slowed credit growth and rising bad loans at state-owned banks and private banks significantly in 2016. "

"Authorities have maintained the exchange rate peg, which is an important pillar of par. The remaining growth prospects in the medium term due to the expected modest oil production constant, and the stability of its investment in the face of restrictions on revenue, and the modest recovery in the non-oil growth, supported by the expected improvement in the security situation and the implementation of structural reforms. 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 in the economy, once it launched the reconstruction process in post-regulation Daesh. The risks remain high; This stems mainly from uncertainty surrounding the prospects for oil prices, the security situation and political uncertainty, and a citizen of administrative weakness. "

"Iraqi authorities and experts of the International Monetary Fund began discussions on the second revision of the standby credit agreement. These discussions will continue during the coming spring meetings of the International Monetary Fund and the World Bank in the period between April 21 to 23, 2017 in Washington, DC. "

"I met with the team during the mission with the Acting Minister of Finance, Prof. Abdul Razak A. Jalil Isa, the Governor of the Central Bank of Iraq by proxy, Mr. Ali Mohsen Ismail Keywords, and consultant Dr. premier appearance in favor, and officials from the Ministry of Finance, the Ministry of Oil and the Ministry of Planning, and the Oil Marketing Company (SOMO), and the device Central Bureau of Statistics, the Iraqi Central Bank, and representatives of the Government the Kurdistan region, and the Office of financial supervision. IMF staff team would like to Aaburan thanked the Iraqi authorities for their cooperation and to make this an open and fruitful talks. "