International Monetary Fund urges Iraq to maximize its resources by revitalizing industry and agriculture



2019/09/17 (00:01 PM) - Number of readings: 168 - Number (4019)


Baghdad / Range

The International Monetary Fund said it looked forward to maximizing the non-oil resources of Iraq's economy through the development of industry and agriculture, improving services, controlling customs and reviewing its mechanism of operation as an important resource for the Iraqi government in the next stage in the light of low oil prices. The private banks to take their natural role to stimulate the economy of the country and by allowing the dealing of its services with private banks in order to restore confidence to the banking sector.


This was during a meeting in the Jordanian capital of Amman within the Association of Iraqi Special Banks with the International Monetary Fund, which focused on the challenges facing the Iraqi economy during the current stage and ways to address the economic crisis and the credit readiness agreement signed by Iraq with the International Monetary Fund in 2015.

The latest consultation between Iraq and the IMF was held for the second review of the credit agreement on 1-6-2017, in which Iraq sought a loan of about $ 840 million as part of the credit readiness program signed between the two sides. The agreement aims to rebalance the financial account The external account and the improvement of public financial management while protecting expenditure.

The head of the mission of Iraq to the International Monetary Fund, Christian Jos, during the meeting, a summary of the economic situation in Iraq and ongoing discussions with the Iraqi government under the Convention on credit readiness, noting: "The IMF looks forward to maximize non-oil resources of the economy of Iraq, The country as industry and agriculture, in addition to improving services, with the need to control customs and reconsider the mechanism of work. "

"The IMF sees that" the organization of the work of the Iraqi customs will be an important resource for the Iraqi government in the next stage, especially in the light of low oil prices, "adding:" The IMF also expects that the price of a barrel of oil during the next five years rate $ 50 per barrel. "

The economic reforms in Iraq include an increase in taxes and electricity charges, and improved level of banking supervision to combat corruption and money laundering. The economic reforms in Iraq will improve the country's productive base and ease the burden of the public budget. Executive Director of the Association of Iraqi Private Banks Ali Tariq said in a statement obtained (a copy) that "a delegation from the Association of Private Banks met with the head of the mission of Iraq to the International Monetary Fund, Christian Joseph in the Jordanian capital Amman, and during the meeting, discussed the challenges facing the Iraqi economy During the current stage and ways to address the economic crisis and the credit readiness agreement signed by Iraq with the International Monetary Fund in 2015.

Tariq added that "the Association of Iraqi private banks stressed during the meeting on the need for the government to allow private banks to take their natural role to revitalize the economy of Iraq by allowing the government to deal with private banks with a view to restore confidence to the banking sector," but added: On the development in the banking sector in terms of compliance and compliance with international requirements, especially with regard to operations against money laundering and financing of terrorism and the Association in cooperation with the Central Bank of Iraq to train 70% of employees in the Iraqi banking sector, In line with the recommendations of the International Monetary Fund.

It is noteworthy that the banking system in Iraq consists of (54) banks as well as the Central Bank and is distributed by ownership among (7) government banks and (23) commercial banks, including (9) Islamic banks in addition to (15) branches of foreign banks.

At a time when Iraq is suffering from financial and economic crisis due to the drop in oil prices globally, which is a one-sided economy relying on oil exports to finance its budget annually without dependence on non-oil resources, and the war against terrorism, which called on the government to take a series of austerity measures.


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