Wednesday, March 22, 2017

IMF confirms its support for Ebadi reforms economically, 22 MARCH

Journal  March 21, 2017

Baghdad - Journal News
The International Monetary Fund, Prime Minister Haider Abadi renewed the support of the Fund for the Iraqi government's reform measures, while Abadi to proceed to correct the economic tracks wrong.

The Office of Abbadi said in a statement that "the Prime Minister received at his residence in Washington, the delegation of the International Monetary Fund," noting that "the delegation renewed its support for the reform measures carried out by the government and the success of Iraq to carry out these reforms," ​​asserting " "He said.

"The government will continue its reform program, strengthen state institutions, create jobs and correct the wrong economic pathways," Abadi said.

Abadi went to the United States at an official invitation from US President Donald Trump. The agenda includes US administration officials, congressmen and the Senate, as well as a meeting of foreign ministers of the International Coalition against Da'ash.

It is hoped that Iraq will receive the third installment of the International Monetary Fund (IMF) credit standing agreement, which is about 840 million dollars, but that the delivery of the said installment will be after the month of June, adding to the previous receipt of one billion and 250 million dollars out of the loan pledged by the Fund, 5.3 billion dollars.

The member of the Parliamentary Integrity Committee Abdul Karim Al-Abtan, the lack of full control over the Iraqi border crossings by the State, while pointed out that if Iraq had control of those ports did not need borrowing from the International Monetary Fund.

"If there was full control by the government, Iraq would not need to resort to the International Monetary Fund, because the amounts that are flowing to Iraq through the border crossings are large and not insignificant," Abtan told the Journal News.

He added that "the large number of decision-makers in the issue of border crossings led to confusion in its work, pointing to the receipt of complaints, especially from truck drivers by the exposure of some of the controls to extortion through the imposition of material royalties and the Commission is currently investigating this subject."

He called on the central government to "pay attention to the issue of border crossings, especially as the state is currently suffering a financial crisis suffocating, in addition to the obligation to be subject to goods entering Iraq to the standards of quality control."

The International Monetary Fund (IMF) has asked for more clarity on the 2017 budget, which the Iraqi side has pledged to provide in the spring consultations in Washington in the last week of next month, confirming the success of consultations between the Iraqi government and the International Monetary Fund.

The delegation of the Iraqi government, in Amman, has held consultations with the International Monetary Fund (IMF) in the second review of the credit agreement with the IMF. This review includes a number of rounds of consultations continuing until June.

The head of the mission of the International Fund, Christian Jos, the continuation of Iraqi economic activity dimmed in the year 2017, because of the reduction of oil production by 1.5% under the agreement reached by the Organization of Petroleum Exporting Countries (OPEC), and the modest recovery of the non-oil sector.

"Iraq is severely affected by the conflict with Dahsh and the sharp fall in global oil prices since 2014," said IMF Chief of Mission Christine Goz, in a final statement of the International Monetary Fund's Iraq mission in Amman. "The Iraqi government responded to the public financial crisis , And the balance of payments crisis, with a substantial but necessary financial adjustment, supported by financial assistance from the international community. "

"In 2016, real GDP growth continued at 11 percent, supported by a significant increase in oil production that benefited from previous oil investments," he said. However, the non-oil economy has shrunk by 8% due to conflict and fiscal adjustment. "

"The sharp decline in oil prices caused the reduction of Iraq's total international reserves from $ 53.7 billion at the end of 2015 to a comfortable level of $ 46.5 billion at the end of December 2016."

"The pressure on public finances remains high, with the government deficit remaining at 12 percent of GDP in 2016 due to continued weak oil prices and rising humanitarian and security spending," he said.


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