Advisor Abadi: sources of external funding to bridge the deficit of the budget in 2017 amounted to 3 billion dollars
Baghdad / Fadia al-Jawari
The recent consultations with the International Monetary Fund (IMF) ended with great success and represented an important prelude to the meeting of the Executive Board of the Fund last month to approve the release of $ 840 million in the completion of the Second Review of the SBA. "The World Bank has promised to continue its support for various financing programs to promote infrastructure and reconstruction within the program of loans or financing the so-called development program, both from World Bank resources itself or the contributions of donor countries, especially the Group of Seven industrialized countries" .
Saleh added in a statement to (the extent), that "the IMF has some calculations to calculate the cost of building the model in the macroeconomic stability of Iraq during the coming period, he wants to complete that information, especially in the subject of electric power sector."
"SBA loans are spread over a period of 36 months at about $ 5.3 billion, a similar amount and for the same period of World Bank loans and concessional parallel financing for the G7," he said.
Saleh added that "the sources of external funding to bridge the deficit gap in the budget of 2017, $ 3 billion, distributed between 50% of the contribution of the Fund within the total loan of $ 5.3 billion, and the second half contribution of the World Bank and some countries of the G7, which represents parallel funding For the World Bank loan, all of which will be withdrawn in the second half of 2017. "
He pointed out that "
The recent consultations in Washington, with the International Monetary Fund and the World Bank, have been positive despite some technical details, and it is hoped that Iraq will receive grants and soft loans of more than $ 3 billion during the current year 2017 to support the budget and reconstruction and investment projects in " Saleh said," The important thing in terms of the credit program with the IMF is two issues, the first is the ability to continue and develop the energy sector in complex market conditions suffered severe crises, and the other is the wise financial management that enabled the country to overcome its ordeal And the night of the deterioration of oil revenues, as well as large expenditures in the budget, which contributed to the crushing of terrorism and the liberation of man and land and finally the success of the price system and the stability of the overall level of prices and the ability to balance this conservation of the safe level of international reserves of Iraq.
It is noteworthy that the International Monetary Fund, confirmed on Wednesday, Iraq's commitment to the reforms required in the second review of the Convention on credit readiness, indicating that this will prepare for the third review, which will begin in September. The Central Bank of Iraq said in a press statement that " The International Monetary Fund congratulated the Central Bank, the Ministry of Finance and the Prime Minister's Office on the success of the second audit consultations of the Credit Accreditation Agreement after the implementation of the programs and the financial and monetary targets and putting them within the framework of securing the financial stability of Iraq and facing financial and security challenges.
He added that "the program includes a series of reforms and goals have been committed to the benefit of Iraq, the latest supplementary budget approved by the House of Representatives in record time, which showed the keenness of the legislative and executive authorities on the plan and programs of reform." The bank pointed out that " The decision of the Board of Directors of the International Monetary Fund to approve the report of the Fund team, which included the fulfillment of the objectives and plans contained in the agreement, will provide an important signal for international institutions and major countries to provide their funding and facilities to support the financial situation in Iraq by supporting the financing of the State budget and projects. And the IMF's statement will lead to the third review, which will begin next September, to continue the program and the external support of Iraq. "In July 2016, the Executive Council agreed to the agreement The US $ 5.34 billion credit is part of Iraq's economic reform program.
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