Amman meeting with the IMF results in a supplementary budget for the current year


The two sides agreed to submit a supplementary budget for the current year, including the allocations of contractors and farmers that have been paid recently, with the circulation of indicators of the federal budget for the year 2018.

The second review was initiated last Thursday and lasted four days, and Iraq sought to obtain a loan of about 840 million dollars, as part of the program of credit readiness signed between the two sides.

The high-level source, who preferred not to be named, confirmed in an interview for (the extent) that the consultations "ended with great success, and the results of the consultations will be presented to the Executive Board of the International Monetary Fund at its meeting in early August." He added that Iraq and the IMF International agreed during the consultations to submit a supplementary budget for 2017, The agreed points include the allocations of contractors and farmers that have recently paid bonds issued by the Ministry of Finance and some other issues, as well as the circulation of indicators of the federal budget for 2018, where the program to achieve the so-called financial adjustment in the face of balance of payments difficulties due to fluctuations in oil revenues and the reflection on the budget Federal, Which requires maximizing non-oil financial resources, reducing spending and financing the deficit from planned internal and external sources, including parts of the IMF loan. Iraq is expected to receive $ 840 million in August, out of the total loan of 5.3 Billion dollar.

In its macroeconomic stabilization program, the IMF advocates giving priority to loans and public spending to the so-called social spending - education, health, social welfare and displaced persons - where the Fund is concerned with the sustainability of public debt, ie, the ability to repay it through Maximizing revenues and controlling and controlling expenditures, in order to bridge the crisis of instability in public resources due to the oil crisis and low oil revenues, as well as the costs of the Iraq war now being fought against terrorism.
The IMF's financial adjustment program with Iraq, the targeting of non-oil revenues and the control of spending are all means of maintaining the reserves of the Central Bank of Iraq.

The financial adviser to Abadi, the appearance of Mohammed Saleh, explained in response to a question (range), on the importance of these talks, Iraq is seeking a loan of about 840 million dollars, as part of the program of credit readiness, for a period of 36 months from July 7, 2016, With a $ 5.3 billion concessional loan repayable over a five-year period. The program provides a financial umbrella for Iraq of more than $ 15 billion, including concessional loans from the World Bank and the Group of Seven major industrialized countries, along with other loans from funding programs, Kuwait War Compensation.

The meetings of the International Monetary Fund with Iraq, the governor of the Central Bank of Iraq, Ali Ismail Alalak and financial adviser to the Prime Minister of the appearance of Mohammed Saleh, with the participation of a number of deputy ministers and the head of the Office of Financial Supervision, and attended part of these consultations for the first time, the assistant director of the Office of the Prime Minister of Iraq.

The agreement aims to rebalance the account of public finances and external account and improve public financial management while protecting the social expenditure of Iraq, according to a recent interview with the head of the mission of the Fund for (range) and also indicated that Iraq can bear its indebtedness if the Iraqi authorities carried out the financial correction agreed with the Fund under an agreement Credit readiness.


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