Specialist: activating the role of institutions paving the way for economic reform (IMF)

06/1/2018 12:00 am 


[rtl]To address the balance of payments and increase non-oil revenues 
Baghdad / Emad Emirate

The economic reform program in Iraq, which is supported by the International Monetary Fund (IMF), is aimed at tackling the balance of payments and upgrading the economy to a level commensurate with world oil prices by activating the role of Iraqi institutions and moving towards economic reform.
"The economic reform program includes measures to protect the poor, boost the performance of public finances, support the stability of the financial sector and curb corruption," said academic economist Ahmed Omar al-Rawi. 
"Iraq has gradually worked to improve the elements of fiscal correction by increasing non-oil revenues, reducing current spending, reforming the electricity sector and government institutions to make way for a larger, more efficient and efficient investment agreement to support growth," he added. 
"The Executive Board of the IMF approved the implementation of the three-year credit agreement with Iraq, which aims to help the country implement the economic reform program and restore the balance of public finances over the medium term," Rawi said. Credit readiness



"The International Monetary Fund said in its report that Iraq has complied with the requirements of credit readiness, adding that" its fiscal program for 2016 and the budget of 2017 have been consistent with what is stated in the agreement on external credit readiness. 
 "He added," The Executive Board of the IMF approved the agreement Of which $ 831.3 billion is a special drawing unit, or about $ 34.5 billion, on the date of approval. Under this approval, Iraq may spend 554 million special drawing units, equivalent to about $ 816.7 million.
The Executive Council also approved Iraq's request to exempt it from declaring non-compliance with the continuing ceiling of new external arrears and requesting the amendment of performance standards. It also approved the request to exempt Iraq from the requirement that the end of September targets apply to the four performance standards related to the minimum international reserves, The local assets of the Central Bank of Iraq, the maximum balance of the total public debt, in addition to the request to amend the implementation of the agreement, was also agreed to hold periodic meetings to follow up the preparation of the credit agreement between Iraq and the Fund. Promote confidence  between the narrator that " the agreement with the International Monetary Fund strengthens confidence in Iraq, and lead to the provision of additional international aid worth 15 billion dollars," along with Iraq , helping to reduce the burden of repayment obligations with the Paris Club.




He stressed that the agreement leads to the receipt of additional financial support from the World Bank and other countries with low benefits, and helps to issue international financial bonds and improve the credit rating of Iraq in financial institutions. 
For his part, said the academic economist Dr. Amr Hisham, "the General Budget Law for 2017 authorized the Minister of Finance to sign agreements with creditors that have already approved the parliament to finance the  
budget deficit of 7, 21 trillion Iraqi dinars, equivalent to about 319, 18 billion dollars, with Financing some 
investment platform projects  . " Japanese loan , said Hisham in an interview with the "morning" that it is " the most important agreements signed by the government in 2017 is the agreement signed in informed between the Ministry of Finance and the Japanese side to get a loan to finance the rehabilitation of electricity worth 3246 million US dollars."




The loan comes within the framework of 24 of the Japanese loans to Iraq, which amounted to this loan to $ 57.5 billion to finance infrastructure projects electricity, water, roads and bridges. 
 In 2017, the Ministry of Finance issued government bonds guaranteed by the US government of $ 1 billion and 3.1 percent interest annually to finance the 2017 budget deficit. On 13 February 2017, the German government agreed that the German Development Bank would grant Iraq a loan of 500 million euros Liberated areas The loan is repaid over 15 years, including a grace period of 5 years. 
"In March 2017, the Ministry of Finance signed a contract with the UK to secure a 10 billion pound loan, equivalent to US $ 453-12 billion over 10 years, to support infrastructure projects.[/rtl]






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