Abadi: The World Bank announced its support for the reform plans in Iraq

[yota691]

Abadi's adviser "Economy News": Iraq will discuss with the IMF, the development of foreign reserves

 

 

Economy News Baghdad:   Financial Advisor to the President of the Iraqi government, the appearance of Mohammed Saleh, on Tuesday, announced that the Iraqi delegation, which will meet with the IMF in the coming days in Washington will discuss the development of foreign reserves.     Saleh said in an exclusive interview for "Economy News", "The Iraqi delegation will discuss with the IMF, the implementation of the financial budget for the current year and the management of public revenue and expenditure and the financing of the fiscal deficit," adding that it "will discuss the development of foreign reserves to ensure stability."   He explained that "the Iraqi government succeeded in achieving economic reform, which is reflected positively on the economy," stressing that "the benefits of the International Monetary Fund loans are very few."   The start of the Iraqi delegation headed by the Minister of Finance Agency Abdul Razzaq Al-Issa, next Friday in Washington discussions with the International Monetary Fund and the World Bank to prepare a review of the credit agreement, which included lending Iraq $ 5.4 billion to cover the deficit in the fiscal budget.   A source in the Iraqi government refused to reveal his name for "economy News", that "an Iraqi delegation headed by the Minister of Finance Agency Abdul Razzaq al-Issa will go to the American city of Washington this week to discuss the readiness of credit agreement signed by Iraq in 2015," noting that "the delegation meetings with the international Monetary Fund and the World Bank will begin on Friday, the next day on April 21 and lasts for three days".   The source added that " the delegation includes   the Minister of Finance Agency Abdul Razzaq al- Issa and Central Bank Governor Ali Keywords Financial Advisor to the Prime Minister the appearance of Mohammed Saleh, and officials from the Ministry of Finance, the Ministry of Oil and the Ministry of Planning and Oil Marketing Company (SOMO), the Central Bureau of Statistics, the Central Bank of Iraq , and representatives of the Kurdistan Regional Government, and the Office of financial supervision".   The Iraqi delegation held with the International Monetary Fund experts discussions in Amman during the period from 5 to 17 March 2017 on Article IV consultations in 2017, and the second revision of the agreement to prepare credit(SBA) with Iraq, amounting to a 36 - month, which was approved by the Executive Board of the International Monetary Fund on July 7 2016 .   It aims to prepare the credit agreement to correct the fiscal balance and the balance of the external position, and improving public financial management, while protecting social spending. The first review was complete under the standby credit agreement on 5 December 2016.
Views 200   Date Added 18/04/2017 - 13:46   Last updated 18/04/2017 - 13:56   No. Content 7181

[yota691]

The Spring Meetings of the World Bank and the IMF will begin in Washington next Wednesday

Tuesday, 1438/7/21 H corresponding to 2017/04/18 SPA

This year's conference is witnessing a number of meetings of finance ministers and central bank governors as well as many seminars, workshops, activities and events dealing with the global economy, international development and the international financial markets. According to the agenda of the meetings, the main event will be human development as well as seminars on the global economy, financial prospects and policies, development and innovative measures to prevent gender-based violence, the launching of the next revolution in food and agriculture, creation of markets and job creation, cities to build the future, Refugee crises in middle-income countries, and funding measures to address climate change. 
kicks off on Wednesday in Washington , DC for five days, the work of the Spring Meetings of the IMF and the World Bank with the participation of thousands of officials and delegations from various countries. 
Washington 20 Rajab 1438 AH , corresponding to April 17 2017 SPA 

[YukonJohn]

GM Yota, great article to read with the 1st cup java, thanks!

[Donziman]

Maybe someone can correct my thinking. Oanda currentcy converter shows a ninety day low

of 1137 and a high of 1182. for an average of 1159. now plus or minus 2 percent <23> is 1182

high and 1136 low. Isn't this what we look for?

[climber7]

1 hour ago, Donziman said:

Maybe someone can correct my thinking. Oanda currentcy converter shows a ninety day low

of 1137 and a high of 1182. for an average of 1159. now plus or minus 2 percent <23> is 1182

high and 1136 low. Isn't this what we look for?

Ya, I thought we were looking for minimum 1250 

This is better than that right? 

What point are we looking for to exchange? 

[10 YEARS LATER]

It's . . .  wait for it - " around the corner "

[Donziman]

Climer7  Some say 1000 Dinar to 1 Dollar then remove the zero and have 1 TO 1.

I thought the IMF said their rate had to stay within a two percent margin up or down.

for ninety days ..Looks like they met that requirement.

[Laid Back]

"The Iraqi government succeeded in achieving economic reform, which is reflected positively on the economy,"

This sentence says it all.

Go end of MCP

Go Art 8

Go RV

Go 2017

[climber7]

3 hours ago, Donziman said:

Climer7  Some say 1000 Dinar to 1 Dollar then remove the zero and have 1 TO 1.

I thought the IMF said their rate had to stay within a two percent margin up or down.

for ninety days ..Looks like they met that requirement.

Thank you Donziman
 

How long past the required 90 days are we now--do you know?

[yota691]

GMT 13:02 2017 Wednesday, April 19 : Last Updated

The relationship between the IMF and Washington are exposed to a difficult test

a. P. B.

 

 

Washington : After 70 years of its existence become International Monetary Fund familiar the financial crisis and plans international assistance, but it will face new challenge in new US administration opposition to his views. And many points disagreement between Trump and administration this institution whose membership includes 189 countries and hold its meetings Washington next week spring.

He promised Trump softened financial controls adopted in the United States after the crisis of 2008. In contrast, the IMF confirms that such a move "will increase the likelihood of" provoking a financial storm in the future.

Also, the IMF warns of economic impact of climate change. While the US administration denies that the health and want to re-energize the coal industry and threaten to withdraw from the Paris agreement on polluting emissions reduction in.

However, the most contentious issues between the Fund and the most important contribution of the state, is the international trade file.

For several months during the US presidential election campaign and even today, has continued to IMF warns of "closure" and economic restrictions on immigration or the specter of a "commercial war" and defends multilateral relations.

dispute

And marks all to question implicit in the agenda of Trump, who threatens to erect tariff barriers and reduce migration and denounces free exchange advocated by the World Trade Organization and signed a decree to encourage the purchase of US products for government projects.

Despite the criticism of the lining, it escaped the IMF so far from the punishment of the US president, but US Commerce Secretary Vilbur Ross did not hide in a recent interview with the Financial Times, his criticism. He said: "Every time do something to defend ourselves (..) describe it as a protectionist tendency. This trifles."

And urges the United States, the International Monetary Fund more control interventions member states in the exchange markets and correcting the trade imbalance, especially affecting the United States, targeting in particular China and Germany.

Douglas said Redeker former US representative to the IMF "quite clearly across some in the Trump administration fully skeptical about multilateralism and if defeated their line, the institutions such as the International Monetary Fund will suffer."

And contrary to this rivalry with the relative harmony for years to the era of Obama, which was the IMF finds them on deaf ears at the White House while calling for the lifting of the US minimum wage and attacking the absence of equality or calls for strengthening the presence of emerging countries.

He said Nathan Assistant Minister Sheets Former Finance in charge of international issues, "there will be tensions, but the weight of the United States (..) did not prevent the IMF from speaking directly and frank in his assessment of US action."

And it clings to the International Monetary Fund so far, his position the anti-protectionism but also seeks to calm praising the plan of Trump promised investment and commitment to cut taxes on companies in the United States.

"Great uncertainty"

The Director of the IMF Christine Lagarde said in an interview Tuesday that "bet on the recovery of the budget and tax reform sowed optimism." Prior to taking office Trump was its founder clearly raised its forecast for US growth (to 2.3 percent in 2017) and kept them in its new report Tuesday despite "doubts" about the big economic program.

In fact, the IMF is forced to fight a balance test is to confirm its independence without being subject to the largest contribution to it.

Although Washington does not have the legal tools to cut off the financing of the IMF, it can disturb him and curb the transformation of the institution, which seeks to open up to the social and environmental issues and give more weight to China and Russia.

And it confirms that the Sheets "Trump administration will be able to influence the agenda of the Fund."

It can also be affected by this Greek thorny issue. He called on the Europeans to participate in fund-based assistance with Greece plan but the fund to convince the United States rightness offer new help.

He predicted Sheets "to be the administration (US) are more reluctant to support the use of IMF resources in Greece."

[235snack]

Talk about a money pit, that is the IMF.

[Wiljor]

18 hours ago, Laid Back said:

"The Iraqi government succeeded in achieving economic reform, which is reflected positively on the economy,"

This sentence says it all.

Go end of MCP

Go Art 8

Go RV

Go 2017

      

[yota691]

Transcript of Press Conference by IMF Managing Director Christine Lagarde

April 20, 2017

SPEAKERS:

Christine Lagarde 
Managing Director, IMF 
David Lipton 
First Deputy Managing Director, IMF 
Gerry Rice 
Director, Communications Department, IMF 

Mr. Rice ‑ Good morning, everyone, and welcome to the Spring Meetings 2017. This is the IMF’s Press Conference. I am very pleased that we have with us this morning the Managing Director, Madame Christine Lagarde. We also have with us, as usual, our First Deputy Managing Director, Mr. David Lipton.

We are on the record this morning. Please keep your questions short. Identify yourselves, please. With that, I will turn to the Managing Director for some opening remarks, and then we will get to your questions.

Madame Lagarde.

Ms. Lagarde ‑ Thank you, and good morning to all of you. Welcome to the 2017 Spring Meetings. Spring is in the air. There was a bit of rain this morning, but spring is in the air and spring is in the economy as well.

We are finally seeing the global economy picking up the momentum that we hope is going to be sustained in the medium and longer term, and I will be happy to discuss that this morning.

It has also been warmed by rays of sensible policies that are now bearing fruit in many countries. As you will have seen from the WEO, which was commented upon by our Chief Economist, Maury Obstfeld, we are forecasting growth in 2017 at 3.5 percent percent and 2018 at 3.6 percent. That is a significant uptick from 2016, which was only at 3.1 percent, which is all good news.

But we need to make sure that this momentum is sustained and that we continue to have that growth and more, and, importantly, that that growth is shared more equitably. Looking at the downside, as we always do, there are risks [tilted] to the downside, including political uncertainty. We all remember the green shoots of 2011, which did not last very long.

So, what will we do during these Spring Meetings? Well, with 189 representatives of the membership, Finance Ministers, Governors of Central Banks, we will be discussing how we can sustain that momentum; how, irrespective of political cycles, we can make sure that our global economy is more resilient; how it is rooted in stronger growth, more inclusive growth and with good cooperation among all.

So, how do we actually focus on more growth and more inclusive growth? You will have seen the Global Policy Agenda, which I think is on each of your chairs, and it is in that document which was submitted to the Executive Board of the IMF that I share with you the objectives that we will pursue.

Our first priority is to maintain the growth momentum. Using which tools? Well, the traditional fiscal, monetary, structural reform tools that we put together as the three‑pronged approach which has to be tailored to each country’s specificity.

Second, and really importantly, we need to reinvigorate productivity, especially by boosting innovation and trade, both which fuel productivity, as is very clearly demonstrated by the recent research paper that we published.

We need to make that global growth more inclusive. That inclusiveness needs to be identified and supported by policies on three dimensions: within countries, across countries, and between generations.

So, what do we mean by more equitable growth within countries? We mean making tax and benefit systems more equitable, boosting high‑quality infrastructure investment, and mitigating the impact of the structural changes that are taking place.

These policies can take different forms, depending on the country’s specificities. It can be minimum wages or raising them when they are way too low. It means expanding in‑work tax credit; the Earned Income Tax Credit, for instance. It means stepping up retraining, job search, labor market‑specific policies, relocation support, revisiting housing policies in order to facilitate labor mobility.

Now, I also mentioned intergenerational; in other words, over time, how we make sure that that growth is equitable. What it means is protect future generations against imprudent actions of today’s generation. Here we are referring to the excessive debt burden; we are referring to unsustainable pension schemes; we are referring to poor or not maintained infrastructure and the impact of climate change.

Finally, stronger cooperation across countries would help reduce excessive external imbalances, clamp down on tax evasion and tax avoidance. It also means focusing on delivering the Sustainable Development Goals so that the low‑income countries can also reap the benefits of this improved productivity and these good policies that we are recommending. All countries, of course, should guard against what I have called self‑inflicted wounds, such as restrictions, subsidies, and other trade distortions that reduce competition and economic openness.

Now, on the question of trade, which is clearly on the minds of some, we are very pleased to see that trade is picking up. Is trade going to continue to increase and grow? We do think so. Is trade operating in a perfect environment, with a perfect setting? No. Is there room to improve that? Of course. Should it be done in a cooperative forum, such as on a week like this, with all Finance Ministers around and talking to each other in a cooperative setting and forum such as the IMF? Yes, we think so.

With that, I will be very happy to take questions.

Question ‑ You once described the post‑recession world economy as the new mediocre. Do you think we are seeing an end to it? In particular, what role, if any, has China’s recent economic performance and economic policies been playing in that regard?

Ms. Lagarde ‑ When I referred to the new mediocre, there was a combination of two mediocres. The first one was growth, which was at around 3.1 percent. The second one was the growth potential, which was also alarmingly mediocre. The first one is certainly a lot better. As I said, growth is picking up, and there is a momentum underway which we need to sustain with the right short‑term policies.

But the growth potential still needs a lot of work. There is clearly a need for policies that will support and encourage and improve productivity. This is one area where clearly policymakers have to focus.

Whether they take particular measures to encourage innovation, support research and development by the private sector, participate in basic research themselves, or whether they work on education, skilling and reskilling on a very vast basis, will be obviously for them to decide.

But we believe that productivity has to be encouraged and supported so that we can move not just from “low mediocre” to “less low mediocre,” which is how I would characterize our position now, but to “not mediocre at all,’ with the prospect of strong potential growth going forward. That applies to all categories of economies that we are studying.

As far as China is concerned, there are clearly good numbers coming out that are certainly a result of some stimulus, some encouragement from the Chinese authorities. We are also quite pleased to see the rebalancing that is taking place in China, from being heavily geared toward investment to being geared more toward consumption, from being a bit more into services—not a bit more into services but actually more into services, and less so in manufacturing.

We are seeing, of course, the rebound of export activity for obvious reasons, because demand addressed to China is picking up. All of that is good and supportive. We also, as you know, have some very specific recommendations to China in relation to credit growth, in particular, and to the reining in of the housing sector, which, despite efforts already undertaken, is continuing to grow.

Question ‑ At these meetings, of course, there is a lot of concern about the policies that the Trump Administration is going to put in place. I am just wondering how you are viewing them, how you are reacting to them, particularly on the trade front.

Do you view this as sort of a big, noisy family, where you really have to have a loud voice to get your view across, or is it a question of maybe adapting a bit because this is the new reality and the organization has to change in its views to accommodate their views?

Ms. Lagarde ‑ From the various contacts that I have had with the Administration so far, I have every reason to believe that we will make progress, that we will cooperate all together in order to support and indeed improve the system as we have it.

The IMF is not a trade organization, but we are concerned about trade because it has been a major engine for growth, and it is actually one of the pillars of prosperity and growth going forward. We certainly will be looking at how we can participate in that, how we can continue to support the growth of trade, and how it can be done in the most efficient, fair, and global way as possible. That implies clearly a level playing field, no use of distortive measures, and no protectionist measures going forward.

Question ‑ [In French, through interpreter] Madame, we see that the CEMAC area is going very badly and the IMF has been at its bedside for some time now. Could you tell us what advice you could give that area of the world so that we get back to a more hopeful growth rate?

Ms. Lagarde ‑ I am going to answer in French, and I will summarize my answer in English for those interested. I will be brief in the summary.

[THROUGH INTERPRETER] In the CEMAC area, there are six countries. Out of those six, two are already in a partnership and a program with the IMF. The Central African Republic and Chad would be those two countries.

The first certainty that we have is that these six countries are in a monetary area and show solidarity to one another. It is very important, therefore, for the policies that are undertaken and the reforms that are implemented to be consistent with one another and be collective. Every country will have its own specificities and its own reform programs, if they wish, but I think there needs to be a shared approach that is common to all six countries.

The second thing is that we have in‑depth relations with all six countries, including the two that are the subject of programs, to see to what extent the IMF and other international institutions, including the African Development Bank, the World Bank, and friendly countries on bilateral basis, can help the area to get back on its feet and to answer the double challenge it is dealing with: on the one hand, the drop in raw materials prices, which greatly affects some countries; and then security issues, which have also greatly affected some countries in the region.

[SPEAKING NOW IN ENGLISH] For those who are interested, in Cameroon?

Six countries are in that monetary zone. The IMF is already having a program with two of them. We are discussing with the other four as well. The first recommendation is that, although each country will have to make specific efforts, the whole monetary zone has to move together and there has to be solidarity among them. It will take goodwill on the part of the governments, of course, in the countries, but also on the part of all international institutions, including the African Development Bank, the World Bank, and bilateral countries to support them.

Question ‑ I would like to ask in Arabic.

Ms. Lagarde ‑ Oh, okay. Give us a minute.

Question ‑ [THROUGH INTERPRETER] My question is, what is the view of the Fund about the economic reforms done by Egypt recently? What are the expectations for other economic reforms by Egypt going forward? Also, what is the expected date for the second tranche of our loan, the $12 billion? We need more details about your last meeting with President Sisi in Washington.

Ms. Lagarde ‑ The Egyptian program which is underway has been very courageous and has embarked on very major reforms for the country. I have [met] President Sisi. I met with [AUDIO CUT OFF] my strong encouragement for the work that had been accomplished and strong support to continue along that path.

There is clearly a question that needs to be addressed, I would say, head‑on, and that is inflation. The other reforms have to continue, but there has to be a special focus on inflation. I think that the Central Bank and the Finance Minister of Egypt are both aware and will, I hope, tackle the inflation risk which is weighing on the population.

It is a very important program in terms of amount. It is the second largest financial program that we have at the moment. It is critically important that the Egyptian authorities and the Egyptian people actually endorse the proposals there in order to take the economy forward. It is a big country. It can really unleash potential. It has the challenge of, obviously, security and threats at home that it needs to deal with.

Question ‑ I would like to ask you about India’ economic reforms, in view of the two major reforms that the Prime Minister has done. One is demonetization, and also about the GST purchase coming up in the next few months.

Ms. Lagarde ‑ As you know, we had slightly revised down our projection as a result of the demonetization process that had been announced a little bit unexpectedly, actually. Our understanding is that that demonetization has now been remedied at about 75 percent, which is the latest March figure that we have and which shows clearly that the situation is now being mended. We believe that India is going to continue to grow at a really fast path. I think we have a 7.2 percent forecast for 2017.

The GST reform is really an act of courage, because it really means reforming in depth each of the Indian states in order to substitute the existing state taxes with that overall federal tax, the reallocation of it, and then the digital platform that will support it. I am personally extremely impressed by the work that is being done in that regard and we expect some positive outcome.

I think there have been other reforms as well that have been conducted by the Indian authorities courageously, one of which, as a former lawyer, I am particularly attentive to because it matters a lot, particularly when you want to deal with the corporate sector or banking sector that needs reforms and help, is the Bankruptcy Law that has now been put in place. So, we are seeing significant developments and a clear determination to continue and to sustain growth going forward.

Question ‑ You said that there is room to improve the global trading system, and, of course, it should be done cooperatively. Can you say exactly how you think the global trading system should improve? Can you cite some examples for what it means to have a level playing field?

Related to that, if I may—

Ms. Lagarde ‑ How many questions do you have?

Question ‑ This is the second part of the first question and the only question.

The IMF’s primary mandate is, in some sense, surveillance, assessing economies accurately as a way to encourage global stability. Would you in your assessment call China a market economy?

Ms. Lagarde ‑ And that is, of course, not a loaded question on your part.

On trade, when I say that there is room to improve, you are talking to a former Secretary of Trade for France and I have been looking very carefully at the reports of the WTO. When you see that the number of violations, number of cases is steadily improving and has gone from a little over 2 percent to 6.5 percent of noncompliance with the trade commitments by the G20 countries alone between 2015 and 2016, when you see that there have been about 3,000 [new restrictive rules] since 2008, there is clearly an issue that needs to be addressed.

There is a Dispute Settlement System that exists which has been used extensively by many partners, including the United States, the European Union and China, but it is clearly an area where there is room for improvement.

I have been saying that for at least two years. It is not a recent development but something that has been with us. It has simply increased between 2015 and 2016 in a quite significant way.

So, has that improved? We believe very firmly in this institution on the value and virtues of dialogue, cooperation, reciprocated assessments. We will contribute our part where we have competence and where it is our mission, and I think other institutions will also want to do that as well in order to make sure that we do not jeopardize the engine of trade, which has been fueling growth and which is evidenced as a key component of productivity.

If you look at the recent report that was published, there are two clear forces that drive productivity up. One is innovation and the other one is trade. We need to keep that going. If we do not improve productivity, our growth potential is going to stay mediocre, as we were discussing earlier.

Surveillance, yes, this is one of our three missions, with lending and capacity development. We do that on a bilateral as well as a multilateral basis. The multilateral surveillance work that we do in the ESR , for instance, informs the bilateral surveillance that we do. We will be releasing next July the ESR, the External Sector Report, where we assess the external position of 29 countries and that will inform the bilateral Article IV that we conduct on those 29 countries.

Irrespective of that external report, we also look at other factors: state‑owned enterprises, the way in which financing is provided. It is on the basis of all those factors that we actually make policy recommendations, but it is not our mission to declare whether one country is or is not a market economy.

Question ‑ Brazil is not yet out of the worst economic recession in its history and is in the middle of the biggest investigation against corruption in its history. If the patient is the economy of the economy country, when can the medicine help and when can the medicine kill? Could you please make a reference to something that happened 25 years ago in Italy, Operation Clean Hands, that was not dissimilar to what is happening—

Ms. Lagarde ‑ Mani Pulite.

Question ‑ Mani Pulite.

Ms. Lagarde ‑ When I look at our list of countries, one clear indication that growth is picking up and that there is a momentum across the board is that there is not a single minus in that whole [column] of forecasts for 2017, including Brazil, which has just come out of a major contraction in 2016.

So, I would say that thanks to the cycle, thanks to policies that have been announced, some of which are being implemented, hopefully the Brazilian economy has turned the corner and is going to improve over the course of the 2017 and 2018. Clearly, we welcome both the fiscal policy that has been identified, the intention to reduce debt going forward, and the monetary policy that responds to a clear reduction of inflation in Brazil.

So, as we see it, the policy mix from those two perspectives is fine. Structural reforms are clearly needed. Trying to get to the bottom of that corruption case or cases or list of cases will be critically important in order to unleash the potential of the Brazilian economy. Will it take a bit of transition time to move from the state of affairs that was known previously to a state of affairs where the economic relationships will be more transparent, will be better disclosed? Possibly. But certainly the fiscal and monetary policies that are underlying those changes are there in place.

Question ‑ The US has recently accused Germany of contributing to global imbalances by running large surpluses and by unfairly benefiting from the low valuation of the euro. Do you share this assessment and are you willing to put more pressure on Berlin to act?

Ms. Lagarde ‑ I think the position of the IMF in relation to reducing external imbalances has not varied in the course of the last few years. In relation to the German economy, in particular, I think we have consistently said that the external imbalance of Germany within the Eurozone should be addressed.

I have gone public last week to actually say that part of that surplus is justifiable, given the aging character of the German population, but that not all of it is justified and that a reduction of that surplus of the current account, particularly the trade balance, was highly desirable.

We are pleased to see that Germany has decided to increase investment for child care centers, is spending quite a bit of money on attending refugees’ needs for those refugees who are being integrated into the German economy, and to also invest in some infrastructure. I have personally recommended to Chancellor Merkel that investing in the broadband system in Germany would be a good idea.

Question ‑ I will not inflict my French on you. Molière would spin in his grave.

I have a question for you on currencies. The US has suggested that perhaps the IMF could play a more robust role in monitoring currency practices globally. Have you given some thought to this and how that might play out? What do you think that would look like? What would be a way for the IMF to step up its currency monitoring?

Ms. Lagarde ‑ The External Sector Report is a fairly sophisticated instrument which has been evolving over the course of the last four years predominantly. Ever since David and I have taken the leadership of this institution, we have been very keen to continuously improve the system. As you know, it is informed notably by the EBA, which is also a sophisticated instrument.

But as sophisticated as they are, they are also models and work that need to constantly be improved, because there is a judgmental part about that system which we always need to insert in the most rigorous, intellectually honest way in order to arrive at a system that is the best explanation and the best set of data that we combine together.

So, we will be doing that. Over the course of the last four years, it has improved each and every year. I hope it will continue to improve in order not to satisfy every player, because typically not everybody is satisfied with the outcome, but at least to eliminate doubt about the looseness of the analysis.

Question ‑ Could you tell us what the latest state of play is with the IMF’s negotiations over a new package for Greece? Are you any closer to coming to an agreement over the scale of debt relief that you would be prepared to accept to sign up to a new package?

Ms. Lagarde ‑ As you all know, and you certainly do, I have consistently repeated that for the IMF to be entering into a program with Greece would require that the program can walk on two legs. One leg is the leg of reforms and the other leg is that of debt sustainability.

The leg of reform has made progress. We have always contended that reforms should be sustainable reforms, parametric reforms that would actually lead the Greek economy to be more solid going forward. We are seeing progress that needs to be detailed and ironed out when the mission returns to Greece in a few days on both the tax reform and on pension reform. There are other areas that need to be negotiated as well, but this is making progress and we are heading in a good direction when it comes to reforms.

On the Debt Sustainability Analysis, which, as you know, is part of any program that I would submit to the Board, we still need to discuss and understand the primary surplus objective that would be assigned to the Greek economy, which, in our view, and in order to determine sustainability, would have to be reasonable. That will indeed determine the amount of debt restructuring that would be needed for the debt of Greece to be sustainable in the medium and long term.

Question ‑ I would like to ask you one global question. A year ago was the scandal about the Panama Papers and one of the compromises at the end of the meeting was the setting of a platform that could help to stop the arbitrage between countries that use tax systems to avoid in other countries the—

Ms. Lagarde ‑ Optimization, as it is called.

Question ‑ —the revenues for the government.

The second one is on Mexico. Do you think that in this moment when it has passed two years of big shocks and with a downward of the oil platform, the oil prices, the stretch of the income, and even the volatile external rates and even the focus that the Trump Administration has given to NAFTA’s future, do you think it is okay for Mexico to be a flexible credit line supporter in this moment especially? Some agencies are thinking to downgrade even the credit risk outlook. How do you see it in Mexico?

Ms. Lagarde ‑ I will start with your first question. I am not exactly sure what the scope is. What I know is that between the Panama and the Bahamas Papers, there have been in multiple jurisdictions around the world tax pursuits and trials and investigations and controls that have been undertaken in order to recover the lost revenue by the state.

The IMF does not deal with those national determinations, but we are really encouraged by both the BEPS project and signing up by all the authorities, by the now entering‑into‑effect of the automatic exchange of information. We certainly believe that it will help better design tax national systems in order to make sure that governments in their respective countries will secure the legitimate flow of revenues that they should be aspiring to and they should be entitled to.

Together with the Bank, with the UN and with the OECD, we have set up that international tax platform, where we are trying to give as much support as we can. We have finished now putting together the toolkit. We are providing about a third of our total capacity development on those issues as well in order to help them structure their tax system, on the one hand, and in order to raise domestic revenue at home, with a particular focus on low‑income countries.

On Mexico, we are really encouraged by the set of very solid, strong policies implemented by both the monetary authorities and the Secretary of Treasury in Mexico. As we know, the price of oil has increased significantly and inflation has gone up as a result, but we believe that the monetary response that was immediately put in place by way of tightening was actually the right decision.

The Flexible Credit Line is in place. I think it is providing support to the Mexican economy. At this point in time, we see no reason whatsoever to challenge that state of affairs. We believe that Mexico satisfies all the requirements of the Flexible Credit Line.

Mr. Rice ‑ This is going to be the last question. I am going to go to the hosts of our next Annual Meetings in Indonesia.

Question ‑ I only have one question for you. Inequality has become a constant for many governments from advanced economies and emerging economies as well. The other side, the resources needed to support the action, is very limited. For example, revenue from taxes is not very good or it is very low. Do you have any suggestion on how to address that challenge?

Ms. Lagarde ‑ First of all, thank you very much for the help that the Indonesian authorities, the Indonesian people are giving us in order to prepare for next year’s Annual Meetings in Indonesia. We are all looking forward to it. Anybody who likes strong coffee, good coffee, there is an Indonesian coffee booth, which is just outstanding.

The Indonesian economy is growing at a nice pace. I was just looking at numbers. We are forecasting 5.1, 5.3 next year. But it is obviously a country where reducing inequalities is a goal, and I know that Finance Minister Sri Mulyani is determined to do that.

I think that the fiscal policy that she applies, her determination to collect revenues that have been sitting outside of the country by way of the tax amnesty of Indonesia, has been a good effort to have more fiscal space available moving forward. There are clearly structural reforms that will be also undertaken in Indonesia and we would strongly recommend that that same policy be applied with the same vigor that is needed.

Mr. Rice ‑ Thank you very much.

[yota691]

Published on Apr 20, 2017

IMF Managing Director Christine Lagarde addresses the media on various issues, like inclusive growth, she says their priority for IMF is to maintain the growth momentum, using fiscal monetary tools, that will be tailored to each countries policies and needs. Making benefit systems more equitable, minimum wages ( raising them if they are too low) stepping up relocation and housing support for labour purposes, she mentioned various things like stronger cooperation with all member countries, the clamping down on tax avoidance, watching and revisiting trade laws and most importantly affecting and realising the millennium development goals by ensuring that countries have to guard against their self-inflicted wounds. On China she said they've seen great numbers, so they'll be looking at ways to support trade and grow it wher neccessary.

[yota691]

Open trade tops IMF discussions in Washington

 

 

Economy News _ Baghdad:       This morning, the world's top financial officials met in Washington DC in an effort to push forward the host country's policies that are still under development away from trade protectionism and to show broad support for open trade and integration. According to Reuters, the spring meetings of the International Monetary Fund and the World Bank will put the members of the 189 members in a standoff with President Donald H. Trump's agenda, which is topped by the slogan "America First" where they meet only two blocks from the White House. Domenico Lombardi, a former IMF official who is currently working with the Center for Innovation in International Governance, a Canadian think tank, said the meetings would all be about the ramifications and implications of his policies on the international agenda, adding that IMF Director Christine Lagarde aims to involve the new administration in a table IFAD's work and influence management options in various policies. The IMF issued warnings of Trump's plans to reduce the US trade deficit through possible import restriction measures, saying in its latest economic forecast that trade protection policies would negatively impact global growth, which is gaining momentum. Trump officials are currently attacking those warnings, saying other countries are more proactive in protecting trade from the United States, and Trump has promised to soften financial controls adopted in the United States following the global financial crisis in 2008. In contrast, the IMF says such action "will increase Likely "to provoke a financial storm in the future. The World Bank's second-highest executive said the administration of US President Donald Trump would work against its "America First" agenda by reducing the US leadership role in multilateral institutions, including the World Bank. "Her meetings with Trump officials have so far shown no desire to withdraw from multilateral institutions," said Cristalina Georgieva, the World Bank's managing director, adding at a forum at the start of spring meetings between the International Monetary Fund and the World Bank: "I never heard them say We want to withdraw. " Trump's budget proposal, known as the "meager budget", aims to cut funding for multilateral development banks, including the World Bank, by $ 650 million over a three-year period compared to commitments made by the administration of former President Barack Obama. But it is the US Congress that will make the final decision on spending levels for the fiscal year ending Oct. 1, not the White House. According to Georgieva, the budget shows that the US administration appreciates its position in institutions. The United States is the world's largest shareholder so far and holds about 17 per cent of its voting power. "Ignoring your position in institutions where you have a very influential and important voice is not very consistent with America's slogan first," she said during a meeting with the Bretton Woods Commission. She added that World Bank funding was probably not the top priority of the new administration, stressing that the bank was self-financing in many respects. One of the reasons she thinks Trump will be kept to keep her role at the World Bank is that the bank is working to stabilize the war-torn areas and the United States has interests in it. "We are in Iraq and Afghanistan, and we hope to be in Syria someday, and these are places that need investment to stabilize, I do not know how any of our shareholders can be affected by a more stable world," said Georgieva.
Views 49   Date Added 04/21/2017 - 13:35   Last updated 21/04/2017 - 13:37   No. Content 7220

[Officiallytook]

Free at last to trade with the world international recognition here we come baby!!!

Let me see the true rate 

Edited April 21, 2017 by Officiallytook

[yota691]

 

[coorslite21]

1 hour ago, yota691 said:

Open trade tops IMF discussions in Washington

 

 

Economy News _ Baghdad:       This morning, the world's top financial officials met in Washington DC in an effort to push forward the host country's policies that are still under development away from trade protectionism and to show broad support for open trade and integration. According to Reuters, the spring meetings of the International Monetary Fund and the World Bank will put the members of the 189 members in a standoff with President Donald H. Trump's agenda, which is topped by the slogan "America First" where they meet only two blocks from the White House. Domenico Lombardi, a former IMF official who is currently working with the Center for Innovation in International Governance, a Canadian think tank, said the meetings would all be about the ramifications and implications of his policies on the international agenda, adding that IMF Director Christine Lagarde aims to involve the new administration in a table IFAD's work and influence management options in various policies. The IMF issued warnings of Trump's plans to reduce the US trade deficit through possible import restriction measures, saying in its latest economic forecast that trade protection policies would negatively impact global growth, which is gaining momentum. Trump officials are currently attacking those warnings, saying other countries are more proactive in protecting trade from the United States, and Trump has promised to soften financial controls adopted in the United States following the global financial crisis in 2008. In contrast, the IMF says such action "will increase Likely "to provoke a financial storm in the future. The World Bank's second-highest executive said the administration of US President Donald Trump would work against its "America First" agenda by reducing the US leadership role in multilateral institutions, including the World Bank. "Her meetings with Trump officials have so far shown no desire to withdraw from multilateral institutions," said Cristalina Georgieva, the World Bank's managing director, adding at a forum at the start of spring meetings between the International Monetary Fund and the World Bank: "I never heard them say We want to withdraw. " Trump's budget proposal, known as the "meager budget", aims to cut funding for multilateral development banks, including the World Bank, by $ 650 million over a three-year period compared to commitments made by the administration of former President Barack Obama. But it is the US Congress that will make the final decision on spending levels for the fiscal year ending Oct. 1, not the White House. According to Georgieva, the budget shows that the US administration appreciates its position in institutions. The United States is the world's largest shareholder so far and holds about 17 per cent of its voting power. "Ignoring your position in institutions where you have a very influential and important voice is not very consistent with America's slogan first," she said during a meeting with the Bretton Woods Commission. She added that World Bank funding was probably not the top priority of the new administration, stressing that the bank was self-financing in many respects. One of the reasons she thinks Trump will be kept to keep her role at the World Bank is that the bank is working to stabilize the war-torn areas and the United States has interests in it. "We are in Iraq and Afghanistan, and we hope to be in Syria someday, and these are places that need investment to stabilize, I do not know how any of our shareholders can be affected by a more stable world," said Georgieva.
Views 49   Date Added 04/21/2017 - 13:35   Last updated 21/04/2017 - 13:37   No. Content 7220

The IMF will soon have bigger concerns than this.  Sunday the French will decide the direction they will take.  If they follow the Brexit/Trump movement we should then be able to stick a fork in the EU and the Euro.  Some form of World Currency Reform is around the corner....I suspect it will have some interesting affects on all of us.....

[Officiallytook]

"fiscal year ending Oct. 1"

Sept Oct Nov right around there is what I see from the past... looked at that so much it's like I can see the future 😂😂😂

[yota691]

GMT 5:26 2017 Saturday, April 22 : Last Updated

Washington is pressing the World Bank and the International Monetary Fund

a. P. B.

 

 

WASHINGTON: US President Donald Trump administration announced Friday its opposition to World Bank project aimed to increase its capital to strengthen its lending and urged IMF to tighten its control on"imbalances" economic.

The World Bank calls for several months to increase its resources in order to provide better assistance to poor countries and finance the economic growth of countries such as the Chinese and Indian giants.

He said World Bank President Jim Yong Kim at the opening of the two associations plenary Rabieitin of his organization and the International Monetary Fund Thursday: "I think that the capital increase is necessary if we are to respond to the aspirations of many countries across the world."

However, the United States, the first financier of the World Bank, has rejected the invitation and announced that US Treasury Secretary Steve Mnotchen in a statement issued at the conclusion of the meetings that this debate "is unnecessary and unrealistic."

"We believe that we can do more to achieve optimal financial outcome of the World Bank and avoid a rapid decline in their loans."

It followed by the World Bank years since the savings plan aroused resentment among his staff.

He urged Mnotchen in his statement the World Bank to focus its efforts more on the "results" of development projects.

He said that "enhance the design of its projects, monitoring and evaluation and supervision of the process is essential to ensure real effectiveness."

In a second statement, Mnotchen IMF urged to secure a "tight" control of economic imbalances that contribute to consideration of the publication of the impression that the financial system "does not benefit everyone."

"It should include a solid analysis of the policy of countries at the level of interest rates and external imbalances."

Trump seeks to manage to reduce the deficit in the trade balance in the current account that has accumulated on the United States to countries such as China and Germany.

He Mnotchen in this regard that "the large trade surplus as large trade deficits do not contribute according to our analysis in a free and fair trading system."

[yota691]

World Bank: Developing countries affected by the decline in remittances

 

Date:April 22, 2017

 

The World Bank said yesterday that the financial transfers for overseas workers from developing countries fell to their country over the past year for the second consecutive year.

He noted the bank in a report on the annual meetings of the IMF and the World Bank margin in Washington that official remittances to developing countries fell last year by 2.4% to $ 429 billion, after falling by 2015 the first time that remittances decline during two consecutive years since about 3 decades.

She said «Rita Ramalho» Acting Director of the Global Indicators of the World Bank said that «transfers source of income for millions of families in developing countries .. A decline in remittances can have a serious impact on the ability of households to have access to health care, education or proper nutrition».

The global financial transfers to all countries fell last year by 1.2% to $ 575 billion, while the growth rate of the world economy only 3.1%. The IMF expects global economic growth this year by 3.5% and 3.6% over the next year.

[yota691]

IMF released a report on the Dubai region, May 2

the source:

• Dubai - statement

Date:April 22, 2017

 

Declares Jihad Azour, the new Director of the Department of Middle East and Central Asia, the International Monetary Fund, the annual report of the Fund details about the Middle East economies in the second of the month of May from Dubai, in conjunction with the annual spring meetings of the IMF and the World Bank in Washington next week, the report deals much detail the risks and challenges facing the Middle East region and projected growth rates for the year 2017 financial and monetary situation of the countries of the region.

Azour offers some basic features of the report, says: «We will launch the report from the city of Dubai in the UAE, and this report gives updates about the growth rates for 2017 and expectations about the changes and prospects and challenges, and takes into account the situation of the region, is seen to the general economic framework, and the development of growth and rates of inflation and the situation financial and monetary, and focuses on themes such as challenges and opportunities, and the impact of oil prices and conflicts on the region's economies

[yota691]

Middle East and Central Asia Press Briefing

Speakers: 

Jihad Azour, Director, Middle East and Central Asia Department

Wafa Amr, Senior Communications Officer, Communications Department

Washington, D.C.

April 21, 2017

MS. AMR:  Good morning everyone, good afternoon to colleagues joining us from the rest of the world.  This is the press briefing for the Middle East and Central Asia. I'd like to introduce Mr. Jihad Azour, Director of the Middle East and Central Asia Department.  Mr. Azour is going to give a few opening remarks and then we'll open the floor for questions.

MR. AZOUR:  Thank you, Wafa.  Good morning to all the participants here as well as through the internet.  Let me first welcome you all here for the Spring meetings and for my first press conference as the new Director for the Middle East and Central Asia Department.  I look forward to continuous discussions and fruitful cooperation. 

The forecast for our region has been released as part of the world economic outlook and we will have more detailed discussions of those forecasts when we launch the update of our regional economic outlook in Dubai on May 2 and in Almaty on May 4. I would like to now make a few remarks about the prospects for our countries, before taking your questions. Let me first begin with the outlook for the Middle, East, North Africa, Afghanistan, and Pakistan region.

A more favorable global environment—including higher expected growth and some firming of commodity prices—is providing some breathing space for the MENAP region after what has been a difficult period. Non-oil growth for the MENAP oil exporters is expected to accelerate from 0.4 percent in 2016 to 2.9 percent in 2017, although the production cuts following the OPEC agreement are reducing headline growth. For the MENAP oil importers, headline growth is projected to increase from 3.7 percent in 2016 to 4 percent in 2017.

While this represents an improvement, our medium-term growth projections are too low to create enough jobs or improve living standards. Many countries—especially oil importers—are also carrying high levels of debt. Therefore, both oil exporters and importers are facing two critical policy imperatives: fiscal consolidation and structural reforms.

On the fiscal consolidation side, we are encouraged by the strong policy measures many countries have adopted, such as plans for a value-added tax in the GCCcountries, streamlining current spending in Algeria and Oman, and energy subsidy reform. The fiscal deficits for oil exporters were 10 percent of GDP last year, but are expected to fall below 5 percent this year, in part due to higher oil prices. Oil importers are also making progress—with deficits expected to drop from 7.2 percent in 2016 to 6.6 percent in 2017. However, these countries still face average debt levels of about 80 percent of GDP.

Therefore, fiscal consolidation and fiscal reforms will remain an ongoing priority across the region. Each country should consolidate their positions at a pace appropriate to their circumstances, and in a manner that is as growth friendly as possible. For instance, we encourage countries to give priority to productive spending—in areas such as education, technology and innovation, and health care—while protecting the poor and vulnerable. Reducing exemptions and expanding the tax base can also help make reforms more fair and more inclusive.

On the structural side, the region recognizes the need for reforms that diversify economies, spur private sector-led growth, and boost competitiveness and productivity. For countries that have already developed plans, such as Saudi Arabia, the focus needs to be on implementing them. These reforms will be necessary to generate the jobs needed by the millions of new jobseekers expected to enter the labor force over the next five years.

Let me now turn to the Caucasus and Central Asia.

Growth for the CCA is also forecast to increase—from 2.4 percent in 2016 to 3.1 percent in 2017. However, recent shocks have left the region with higher debt and weaker financial sectors, and the medium-term growth outlook remains subdued. Over the next 12 months and beyond, to ensure fiscal vulnerabilities are effectively managed, CCA countries need to carefully consolidate their fiscal positions—too much could hurt growth; too little could undermine fiscal sustainability.

The CCA should also continue to pursue structural reforms. We are encouraged by the plans developed by countries such as Georgia and Kazakhstan, and look forward to seeing those plans become a reality. In particular, improving the business environment and strengthening legal frameworks will help the CCA diversify away from commodities and remittances.

Finally, a key priority for the CCA is the need to strengthen its financial sector, which has become increasingly vulnerable. With few exceptions, restructured and overdue loans have increased further, and banks remain undercapitalized. These weaknesses represent a drag on future economic growth and pose a risk to public finances. Therefore, financial repair is urgently needed. Some countries have started to take action, but more remains to be done.

Before I take your questions, I’d like to highlight some of the support and advice we’ve been providing to the MENAP and CCA region

The IMF continues to be deeply engaged in our region and I am looking forward to strengthening those ties over the course of this year and beyond. We are providing financial support to 10 countries in our region, including new arrangements for Egypt and Georgia—which was approved by the Board last week. And we are continuing to provide advice and analytical work to help countries address policy challenges—including in areas such as energy price reform in the Arab countries and structural reform priorities in the GCC. We are helping countries with capacity building, including anti-money laundering efforts in Afghanistan, the introduction of a new currency in Somalia, and the development of the value-added tax in the GCC. We are also developing plans for a conference in early 2018 aimed at identifying ways to boost inclusive growth in the MENA region.

For the wider MENAP region, the humanitarian and economic cost of conflict is an ever-present concern and we are committed to helping countries cope with—and then recover from—those effects. With an estimated 10 million refugees and twice as many displaced people, our lending arrangements have been tailored to help countries cope with these difficult circumstances. The IMF is also working with our partners to mobilize broader international support.

I again thank you for your time and for joining us for the IMF’s Spring Meetings. Let me now turn to your questions.

Again, thank you very much for taking the time today to join us at the IMF Spring meetings and I will be very happy to answer any questions.

MS. AMR:  Thank you very much.  Please identify yourself and your media organizations.  

QUESTIONER:  This is going to be the only opportunity for me to ask about the country Egypt and my concerns, so I've got three questions, but I assure you they're going to be quick.  Although they started to implement most of major things, economic reforms to revive the national economy, and for that, the Board of the IMF agreed to grant us a $12 billion loan, and we got the first tranche, but now, after like two years of implementation, I could literally say that our people are still suffering a lot, maybe more than ever before.  You once said, not you, I mean, the IMF once said that the value of our national currency has been depreciated more than you have expected.  I don't know how that happened and I don't know why it happened.  Well, could you please tell me what do you suggest for our government to quickly retrieve the value of the currency?

The second thing is about our public debt, which reached a very high level, and what to do to contain it or to control it.  So again, what is your plan for our government to quickly control effectively the public debt?

The last thing is about the tranche.  The IMF give us the first tranche of the loan, and we're waiting for the second tranche, and I'm not going to ask you when we're going to get it, because I'm quite sure that you're not going to tell me, but my question regarding that point is, what might hold the IMF back to give us the second tranche in the coming two weeks?  Thank you.

 

MR. AZOUR:  Well, thank you for your question.  Let me first tell you that the program has been approved in 2016 and not two years ago, and therefore, the program is running for six months now.  A certain number of reforms were implemented, and then we had very constructive dialogue with the authorities a few weeks ago when a delegation came here with the President, as well as also yesterday we had a very good meeting with their excellencies, the Minister of Finance and Central Bank Governor.

One of the main issues that we are focusing on after the first wave of reforms that were introduced under the program that brought, as you know, very strong confidence back into the Egyptian economy, and that was translated into strong capital inflows and have stabilized the economic situation.

Now, the main focus is on how to bring inflation down.  Bringing inflation down is a priority, not only for monetary policy management, but also for economic and social issues.  Those are the things that we are currently discussing with the authorities, and the priority is to bring inflation from 30 percent further down.

On the second -- I will go back to this -- on the second issue the debt sustainability is one of the main priorities of the program.  Therefore, this is part of the design of the program is progressively to bring down the level of debt.  Part of the measures that were introduced, in fact, were introduced to bring the level of debt down.  Also, to allow the Egyptian economy, which is something that is very important to look forward to now that you have the new economic cycle i.e., the global economy is growing back, to see how Egypt can benefit further from this recovery.

Some of the reforms that we have introduced, in fact, address this issue, improves the competitiveness of Egypt, as well as also increased productivity.  By doing so, we would allow the Egyptian economy to benefit further from the global recovery.  Yet, we made sure, in the design of the program, to alleviate the pressure on the low-income people, and this is why we have, designed some of the measures, through takaful and Karama and other initiatives to make sure that, while we're removing some of the subsidies, we are protecting those who are in need for the support.  Therefore, the design of the program was, in fact, trying to achieve the objectives that you actually have raised.  We have been doing this for six months now; it's progressing.  I think we need to give it some more time.

To answer your last question, the second tranche will be disbursed when the review is performed.  I think it's too early and it wouldn't be wise for me sitting here today to say when the tranche will be disbursed when the review is not completed yet.  Therefore, as you know, a mission will go, I think, in a few weeks' time, probably by end of April or so, to Egypt to finalize the review, and by that time, I will be very happy to answer your question.  Therefore, I think we have to be a bit patient.  Egypt did a great level of effort over the last six months.  Things are improving, markets are reacting positively, we're trying to make sure that the burden of effort is shared in a way that will, in fact, will have the majority of people contributing, but I think we need to give it some more time.

QUESTIONER:  I want to follow up on Egypt, and I want to ask about another country.  On Egypt, so you're in talks now to curb inflation, and he asked how were you going to curb inflation, because you see two main channels tied to monetary policy and, for example, if you're looking to delay some of the measures like the second round in subsidy cuts, it would, when implemented, add to the inflationary pressures, at least one of.  That's on Egypt, so what are the challenges that you see to curb inflation?

And the question I have is on Bahrain.  FX reserve levels are down below $2 billion, per the latest central bank data.  That covers, I think, less than two months (inaudible) source.  It's within the critical levels.  How concerned are you about Bahrain?  Do you see strong decision?  Do you anticipate GCC support or see a need for Bahrain to have global bond markets again to raise that question.  Thank you very much.

MR. AZOUR:  Thank you very much.  On that, you rightly, for on Eqypt said it.  The level of inflation months and months is above 30 percent.  This is not only hurting the overall financial stability, it's also hurting social need, those who have low income, and the poor sector of the population.  In this case, the instruments that are the best to be used are monetary instruments, especially the interest rates,  And we understand that Egypt has been, for a long period, working on an exchange rate regime that is fixed and therefore the utilization of these instruments were not in the toolbox of the central bank.  Therefore, today, objective number one is to bring inflation down, because by bringing inflation down, we will ease the additional of fiscal adjustments required, one.

Second, socially, it will alleviate some of the social pressure that has been created by moving from fixed exchange rate regime to flexible exchange rate regime, and also for the stability in terms of providing FDIs and providing the right framework for investors.  I think this is the right priority to tackle.  We believe that the utilization of the interest rate instrument is the right instrument to be used in order to manage inflation down, and this is something that we are discussing with the authorities.

On sequencing, also, I think the right sequence is to address inflation and then pursue on some of the additional fiscal measures that were part of the program.  Nothing of what we are discussing today was not part of the agreed program of last year.  As I said, this program has proved to be useful for Egypt.  It has provided confidence back.  It allowed them to manage a situation that was difficult before.  We need to give it some time.  This is a three years' program, it's not six months' program.  Therefore, we need to work with them on the right sequence, and have a very good relationship with them on that.

Bahrain, like other GCC countries, was hit hard by the drop in oil price.  As you know, in the GCC countries, you have countries where the level of buffers is higher, but Bahrain did the needed fiscal consideration, like others.  They still need to do more.  They have still the right exchange rate regime is the exchange rate regime they have.  They need to pursue fiscal consolidation.  They were able to tap the market successfully, as you know.  Last year they did successful bond, and this year they did another one.  We are keeping the dialogue open with the authorities.

MS. AMR:  We'll take a question here in the second row, and then we'll take your question.

QUESTIONER:  Question about Iran, so what sort of forecast do you have for Iranian economy, given the fact that one year of the thing of interest sanctions have gone, and so for the coming years, what kind of forecast do you have, which is specifically focus it on the non-oil sector?  Thank you.

MR. AZOUR:  Okay.  Thank you very much for your question.  As you know, the Iranian economy recovered in 2016, mainly from the oil sector.  The ability of Iran to bring up the level of oil production to those of the level of oil export helped the Iranian economy grow in 2016, based mainly on the oil sector side.  2017, the growth will come from the non-oil sector, and this will depend on the speed at which the various reforms, mainly the structure reforms, are conducted to provide addition and access for foreign investors through improving the business environment, reforming their financial sector, as well as also improving the way their fiscal management, and the way they manage their budget.  Going forward, we expect the level of growth to go up, and as I said, mainly from the non-oil sector.

QUESTIONER:  Let me ask about two fundamentals, which on their place and in the world economy, dropping the latest on the world economy conflict.  One is the possible tax reform in the U.S. and the appreciation of dollar.  This can pose additional risks to particularly to CCA the oil importers, because a large part of their debt is dollar denominated and their negative (inaudible) is also denominated in dollars.

And the next is the ongoing rebalancing of the economy in China, and this result in a lesser demand for raw materials are in the Chinese industry, and as to direct down the global prices for metals primarily.  Thank you, which could also weigh on the exports of CCA importers.  Thank you.

MR. AZOUR:  Thank you.  Of course, as I said in my introduction, global economy is improving and the region is benefiting from that.  The level of growth that we are witnessing in the region, large part of it is coming from the increase in oil price and price of commodities, as well as also the improvement in the trade partners of both CCA and MENA countries.  But also, risks are still there, and part of the risks is coming from the fact that interest rates in the U.S. could go up as well as also the appreciation of the dollar.  This applies for countries that have part of the debt in dollars and also they have a dollarized economy, and case in point, in the CCA countries.  And therefore part of our recommendations is to use this moment where the situation in 2017 has improved compared to last year to accelerate some of the reforms.

In the case of CCA, the effort to go into reforming and restructuring the financial sector, this is, on one hand, that will allow the financial sector to be less dependent or at risk when interest rates internationally goes up, and then the path through will be affecting negatively their financial stability, but also, I think reforms to diversify their economies, and therefore, structure reforms are very important on that front for countries to have the level of growth they used to enjoy 5 or 10 years ago.  Therefore, we believe that opening up their economies through structure reforms, stabilizing their financial system and complementing this with some of the fiscal reforms that are needed will help CCA countries to, in fact, on one hand, benefit from the recovery, and on the other hand, to protect themselves.

On the rebalancing in China, the Chinese economy is showing stronger recovery than six months ago.  Therefore, I think what is useful today is to see how we can benefit more from the recovery of the Chinese economy and the One Belt One Road initiative as well as also other initiatives need to be put at the service of benefitting those countries more and to grow faster.  As I said, we need to go back to the level of growth that those countries used to enjoy because in 2016, we had the most level of growth, in fact, in the last 20 years and this is where the efforts should go. 

QUESTIONER:  Good morning, I am from Radio Tunisia.  My first question is about the reforms in Tunisia.  How do you assess the progress and the reforms in the country? And the second one is about the currency, the national currency, the Dinar up to the recent IMF review mission in Tunisia and especially after the declaration of the finance minister on Tuesday to the Tunisian press about the Dinar, the national currency has devalued-- it has lost about 8 to 10 percent in two days versus the international currencies. 

My question is did you advise Tunisian authorities to have the Dinar float freely? And the second part of the question, did you consult with Tunisian authorities about the manner to communicate about that to the business and the public opinion? Thank you.

MR. AZOUR:  Thank you.  As you know, we had the mission that finished this week in Tunisia and we are satisfied with the outcome of this mission.  Together with Tunisian authorities, we emphasize on the key reforms in order, on one hand, to address their public finance situation, because an important element of the program is to standardize the situation, especially with a country where the level of deficit is high.  

And, on the other hand, to allow the Tunisian economy to address the issue that you’ve mentioned which is the growing trade deficit and the way they can address it is by having additional flexibility over time.  It doesn’t need to be in the way you mentioned it.  We are not recommending the floating of the Dinar.  We are recommending the management of the currency in a way to allow Tunisia to address the deficit, the budget deficit and the trade deficit and to preserve the stability of the Tunisian economy.

This is an instrument like other instruments. The same way we have recommended some measures on the fiscal side, we are recommending certain measures on the monetary side.  As I said, in Tunisia, our targets are two: stabilization in order to have the economy, as well as also the public finance stabilized in order for Tunisian authorities to focus on prosperity, how we can bring growth to be able to find the right level of jobs that the Tunisian young as well as also the unemployed to find jobs.

The program that we have designed with them and the effort that we are conducting with them is stabilization and recovery.  Recovery is by doing business, by improving some of the business environment, reforming the financial sector that plays a great role in improving the access to finance and allows the private sector to invest and grow, especially in the medium and small size companies.

On the second point, on communication, in fact, this is not our role.  The authorities, they manage their communication the way they (inaudible).

.

QUESTIONER:  Thank you so much.  I am going to ask my question in Arabic please.  Thank you, Mr. President.  I used to call you Mr. Minister in Lebanon.  The first point today is that you were a minister in Lebanon and you know that there is very high deficit in all budgets and also the increase of public debt and the issue of refugees today, the parliament, even in discussing the issue of the budget and the financial reforms and different forms that have to go along with this. 

As you are the ex-Minister in Lebanon and now you are in the IMF, how do you advise the economy or the authorities in Lebanon to go ahead with these reforms? Now with the bank in Lebanon, you, here at the International Monetary Fund, you are supervising the monetary policies and the general policies in the different countries, what is your opinion regarding this issue in Lebanon and will it have spillovers on the economy as it was mentioned by some people?

MR. AZOUR:  As you are aware, the mission of the IMF was in Beirut some time ago and it has reviewed from one part, all the issues that have to do with reducing deficit and in this field, there were many studies that were conducted by the mission in Beirut about the issues that are related to reducing deficit as well as other issues related to regaining growth and also the refugees and its impact on the Lebanese economy because we expect -- we know that the issue of refugees had a negative impact on economy and also on the fiscal side.

As IMF, we encourage the resolutions taken regarding the budget and also a certain number of procedures and actions with regard to expenditures and revenue.  Our main recommendation is that Lebanon, as any other country in the region that has high debts, it is to look with an accelerated manner to reduce deficits, especially in order to improve, to get surplus and to realize surplus in a level that would allow the government of Lebanon to maintain and reduce the level of debt as compared to GDP, therefore, any procedures taken by the government or the state of Lebanon are procedures and measures that are taken and encouraged by the International Monetary Fund.  In this field, we have a number of suggestions that were made by the mission in this report and the other reports.  The other issue, which has to do with fiscal affairs, it has to do with the monetary policy and also the mission by the Fund has reviewed this issue and has given its recommendations that we need to use other tools such as gradual increase if it is necessary of the level of interest rate and I would say again that we need to emphasize through the mission, that Lebanon has to tackle the issue of deficit to increase the level of primary surplus due to two factors. 

The first factor is the issue of refugees and its impact and you know, in the last conference that was held in Brussels, it was mentioned and the other reason is that today with the increase of interest rates at the level of the world, especially the interest rate on the dollar, Lebanon has to be more prudential and has to have more protection for financial stability. 

MR. AMR:  Yes, go ahead.

QUESTIONER:  I have two questions.  How does the IMF assess the economic status of Jordan nowadays? There are many comments by the experts that we are facing a very difficult situation if we don’t take procedures, we will be like Greece.  I am talking about the economic situation about in Jordan.  There is a program within the International Monetary Fund and now we are going -- there are negotiations with the IMF and they will be finalized very soon. 

In the last visits you made, you recommended that we increase revenue and we start making some reforms at the value of 450 million Dinar.  That situation is very difficult in Jordan, how can we balance between these reforms and the situation that we face and the increasing number of refugees and also the income of the Jordanian national is very very low so how can we face all these challenges?

MR. AZOUR:  No doubt that the refugees’ problem is very difficult.  We were discussing the case of Lebanon and it’s also the case of Jordan and the issue of refugees has overburdened not only the human part but also the economic aspect and we are facing challenges because of that because we -- managing the economy is very difficult. 

No doubt, Jordan is also suffering due to the inability to benefit from the trade with neighboring countries such as Iraq and other countries. 

The program that was put in cooperation with the government of Jordan is to support the program of the government. 

There are reforms that have to do with the budget and the first factor was expanding the base of revenue because the main problem suffered by Jordan and other countries in the region is that there is focus, there is vulnerabilities in the revenues. 

We need to expand the base of revenues and the best way is through two factors: the first one is gradually eliminating all exemptions in the taxing system to ease the burden on the vulnerable, and the Fund did not make recommendation to lift the price of basic food products or remove subsidy on food such as bread and others.

You may notice in the program supported by the Fund, there are some issues that have to do with social aspect, whether participation of women is more in the labor market, we have a number of social programs and also among the conditions of the program, they have to do with the vulnerable, whether in Egypt or in Jordan, we attach a great deal of attention that these points would be taken into consideration.

As I mentioned in the beginning, the growth or inclusive growth is one of priorities that we work on.  This does not prevent countries that suffer from high debt to tackle these issues. 

The objective, how to treat, how to tackle these issues with less cost and with high effectiveness, we want to enable the economy to start to grow. 

The objective is not only to improve the indicators of the budget but we also want to give more space so that the government would benefit from it to support social programs.

For example, in Jordan, through supporting small and medium enterprises that would enable the Jordanian economy to grow again. 

The situation in the region today does not give enough impetus through benefits  from the remittances that would come from the Gulf region or openness of the market, therefore we want to increase productivity and we need to use other tools in order to allow small and medium enterprises to be again the main foundation for growth.

Therefore, the situation in Egypt and in Jordan, the main objective of the program is to give confidence through tackling the issue of deficit in order to realize stability and to enable Jordan to start again to make growth through structural reforms that would allow through these reforms to be able to make growth of one or two or three or more percent of growth, therefore, I would say that this kind of growth at this level would have its impact on unemployment, especially youth employment.

We in the region are suffering from very high levels of unemployment and we have people who will join the labor market.

They are in large numbers, they need to enter the market through structure and reforms the way the economy realizes growth is through small and medium enterprises, thank you.

MS. AMR:  This is the end of the press briefing on the Middle East and Central Asia.&nbs

IMF Communications Department

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Iraq to discuss with the IMF the second review of the program to prepare the credit   Friday April 21, 2017 19:34         Alsumaria News / Baghdad ,  representatives from the Iraqi government , headed by the Minister of Finance discussed the agency Abdel - Razzaq al- Essa, Friday with a delegation from the International Monetary Fund , the second review of the program to prepare the credit.  The Information Office of the Minister of Finance Agency said in a statement Alsumaria News received a copy of it, " an Iraqi delegation senior participated in the spring meetings of the IMF and the World Bank is currently held in Washington , " noting that the Iraqi delegation headed by "the Minister of Finance Agency Governor of Iraq at the World Bank , Abdul Razzaq al- Issa The presence of the Governor of the Central Bank of Iraq on the Keywords and Advisor to the Prime Minister for financial Affairs appearance of Mohammed Saleh, agents and directors of two of the ministries of Finance and electricity and the Central Bank of Iraq. "       The statement added that " the delegation discussed with the IMF team headed by Christian Jos team manager negotiator for the International Fund, the second revision of the program to prepare the credit ( the SBA ) between Iraq and the International Monetary Fund in the spring meetings of the IMF agenda and the Bank Ateyen currently being held in Washington 2017".  The financial advisor to the prime minister confirmed the appearance of Mohammed Saleh, in (17 March 2017), the success of the consultations on the readiness of credit between the Iraqi government and the International Monetary Fund agreement, considering that otherwise occur "Aldaasha fifth column."

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The World Bank stands ready to allocate nine million dollars to support gas investment in Iraq

 

 

Economy News Baghdad ,  revealed the Minister of Finance Agency Abdul Razzaq al- Essa, the World Bank has expressed its readiness to allocate nine million dollars to support the associated gas investment in Iraq.  Issa said in a statement issued on the sidelines of the spring meetings of the IMF and the World Bank in Washington, and received "Economy News" a copy of it, " the Iraqi government will intensify the work of the joint committee between the ministries of finance, electricity and oil to activate the gas investment associated with and benefit from the operation of electric power projects."  Alissa referred to " the World Bank is ready to provide a grant of nine million dollars to support projects and studies to invest associated gas in Iraq."  Iraq occupies the eleventh place among the world 's rich natural gas after Russia, Iran, Qatar, Saudi Arabia, UAE, America, Nigeria, Venezuela and Algeria, and proven reserves of which about 112 trillion cubic feet.
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