The International Monetary Fund urges the Iraqi government to cut subsidies on the electricity sector
The International Monetary Fund urged the Iraqi government to reduce subsidies on the electricity sector, and protect the poorest and least-income groups, while recommending the need for comprehensive reform of the banking sector.
"The Executive Board of the International Monetary Fund concluded the Article IV consultations with Iraq," the central bank said in a statement, noting that "the Council felt that the improvement in the Iraqi economy is encouraging, but acknowledged the serious challenges that still face the country."
"Council directors have urged that we take advantage of improved security and higher oil prices to implement structural policies and reforms aimed at ensuring macroeconomic and financial stability and addressing long-standing social problems," he said.
"Building a strong framework for public finances is necessary to maintain fiscal and macroeconomic stability and to strengthen safety margins," the IMF said, adding that it supports "gradually increasing spending on reconstruction and development in parallel to improving absorptive capacity."
"The need for progressive fiscal control, including containment of current spending and increasing non-oil revenues to maintain fiscal sustainability and keep debt within sustainable limits," the IMF said, adding that "the increase in the wage bill and the reduction of subsidies to the electricity sector should be priorities in spending procedures." On protecting the poorest and least vulnerable groups from financial controls. "
The IMF called for "a comprehensive reform of the banking sector in order to maintain financial stability, urging the authorities to restructure large state-owned banks, strengthen their supervision and implement other reforms to increase financial intermediation activities."
Iraq faces several challenges, including the unstable security situation, which is heavily affected by investment in Iraq, in addition to [You must be registered and logged in to see this link.] rent economy .
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