IMF praises the cooperation of Iraq

IMF praises the cooperation of Iraq

 

3/19/2017 0:00


Baghdad / follow - up to the morning of the
Iraqi authorities and experts of the International Monetary Fund held discussions in Amman during the period from 5 to 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 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 revision to complete under the standby credit agreement on 5 December 2016.oukd Mr. Christian coconut head of the IMF mission for Iraq made the following statement:
"harmed Iraq severely affected by the conflict with the organization" 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, real GDP continued to grow by 11 percent, supported by a substantial increase in oil production , which benefited from oil investments earlier. However, the non - oil economy shrank by 8 percent due to the conflict and fiscal adjustment. In 2017, it is expected to remain the economic activity muted due to reduced oil production by 1.5 percent under the agreement reached by the Organization of petroleum exporting countries (OPEC), 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 2016, it remains the pressures facing large public financial ones, with government deficit remains at a level of 12 percent of GDP in 2016, due to continued weakness in oil prices, high humanitarian and security spending. the total public debt rose from 32 percent to 64 percent of GDP in the period 2014-2016. slowed credit growth and increased non - performing loans at state - owned and private banks dramatically in 2016 the banks. "" kept the authorities on the exchange rate peg, a nominal substrate task. the remaining growth prospects in the medium term modest because of the expected oil production constant, and the stability of its investment in the face of restrictions on revenue, the recovery is modest in the non - oil growth, supported by the improvement expected 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 economy, once the reconstruction process starts in the post - regulation "Daesh." The risks remain high; and this is the basis stems from the uncertainty surrounding the prospects for oil prices, the security situation and political uncertainty, and a citizen of administrative weakness. "" The Iraqi government and the experts of the International Monetary Fund began discussions on the second review of the agreement to prepare the credit, and will continue these discussions in 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. "" The team met during the mission with Acting Finance Minister Dr. Abdul Razzaq al- Jalil Issa, the Governor of the Central Bank of Iraq acting d. Ali Mohsen Ismail Keywords, and consultant Dr. prime minister appearance of Mohammed Saleh, officials of 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 Kurdistan Regional Government, 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. "

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