IMF extends the term of the loan allocated for Iraq

[yota691]

IMF extends the term of the loan allocated for Iraq

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03.08.2012

International Monetary Fund said in a statement on Friday to extend the loan period the monitoring of Iraq for seven months to enable the Iraqi government to take actions required under the program.

means the extension that the Iraqi government and the extra time to borrow one billion nine hundred and sixty million dollars is still available from the International Monetary Fund for Iraq .

was due to end of the loan period, which stood at the beginning of three billion six hundred million dollars in the twenty-third of July and will end now in the twenty third of February 2013. http://www.iraqhurr.org/archive/news/20120803/1093/1093.html?id=24666238

[Dinar Buddy]

Still no change in the last 3 years. This whole thing keeps moving further and further out. It feels now like we won't see any changes till the start of 2014. The GOI moves so slow and can never agree. OK, GURU's keep pumping us as we are in this for the long haul.

[magawatt]

Perhaps someone could comment on how the loan extension relates to an RV.

[George Hayduke]

IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq

IMF SBA

IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq

Press Release No. 12/286

August 3, 2012

The Executive Board of the International Monetary Fund (IMF) approved on July 20, 2012—on a lapse-of-time basis1—a seven-month extension of Iraq’s Stand-By Arrangement (SBA), to February 23, 2013.

The SBA had been scheduled to expire on July 23, 2012. The extension, which had been requested by the Iraqi authorities, will provide them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime.

The two-year Stand-By Arrangement (SBA) in the amount of SDR 2.38 billion (about US$3.58 billion), was approved by the IMF's Executive Board on February 24, 2010 (see press release 10/60). The IMF's Executive Board completed the first program review on October 1, 2010 (see press release 10/373), and the second review on March 18, 2011 (see press release 11/90). At the time of the second review, the program duration was extended by five months to July 2012, along with a rephasing of program disbursements based on a shift in financing needs. Total resources currently available to Iraq under the arrangement amount to the equivalent of SDR 1307.24 million (about $1.96 billion).

[GinaG]

Really? This sucks!

[HowieC]

It looks like the program was up in July...seems to me an extension was to be expected. Good question Magawatt...maybe I'm missing something..how does this relate to timing of an RV?

[Butifldrm]

Holy &%^$# !, Thanks for the post yota. So this means we will wait . I've been waiting for this

[Sparky69]

It looks like the program was up in July...seems to me an extension was to be expected. Good question Magawatt...maybe I'm missing something..how does this relate to timing of an RV?

It doesn't relate at all to the "timing of an RV".That can happen anytime now(even during Ramadan but chances are slim)All it does is show that the IMF is still supporting Iraq's effort to get their act together and become an independant.democratic society.A good thing IMO.

Cheers,

Sparky

[Carrello]

It doesn't relate at all to the "timing of an RV".That can happen anytime now(even during Ramadan but chances are slim)All it does is show that the IMF is still supporting Iraq's effort to get their act together and become an independant.democratic society.A good thing IMO.

Cheers,

Sparky

Thanks Sparky. I just couldn't figure out how this event could delay the RV. It is an extension which allows for further examination and implementation of recognized improvements, and looks to me to be a win-win. Am I missing something?

[rockfl9]

An SBA is like a line of credit from the bank. I see that $1.6Bn is missing. If they used it to balance the budget that is not good for potential RV as it would be a claim on future income .. If the LOC was simply scaled back no problem. Just good management to ask for an extension..Its cheap credit...

[Maggie123]

I view IMF as the "loan sharks" of the world. I read it twice and all I can see is that they are keeping the offer open to borrow a couple more billion. JMHO

"means the extension that the Iraqi government and the extra time to borrow one billion nine hundred and sixty million dollars is still available from the International Monetary Fund for Iraq . "

Thank You Yota Dear

Edited August 3, 2012 by Maggie123

[Butifldrm]

IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq

Press Release No. 12/286

August 3, 2012

The Executive Board of the International Monetary Fund (IMF) approved on July 20, 2012—on a lapse-of-time basis1—a seven-month extension of Iraq’s Stand-By Arrangement (SBA), to February 23, 2013.

The SBA had been scheduled to expire on July 23, 2012. The extension, which had been requested by the Iraqi authorities, will provide them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime.

The two-year Stand-By Arrangement (SBA) in the amount of SDR 2.38 billion (about US$3.58 billion), was approved by the IMF's Executive Board on February 24, 2010 (see press release 10/60). The IMF's Executive Board completed the first program review on October 1, 2010 (see press release 10/373), and the second review on March 18, 2011 (see press release 11/90). At the time of the second review, the program duration was extended by five months to July 2012, along with a rephasing of program disbursements based on a shift in financing needs. Total resources currently available to Iraq under the arrangement amount to the equivalent of SDR 1307.24 million (about $1.96 billion).

http://www.imf.org/external/np/sec/pr/2012/pr12286.htm

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1 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

What does lapse of time basis mean? Anyone have any idea?

[Maggie123]

Beautiful Dreamer

Sorry if I am being pesky, but to me it is saying...

"just sign your name here. (last chance for us to own your country) We will kindly extend this offer for 6 more months. Don't bother to read the fine print on how we will expect you to pay it back."

I would love to hear other opinions too.

[Carrello]

ButifIdrm, in contract law it means:

An offer can be terminated on the grounds of rejection on the part of the offeree, that is if the offeree does not accept the terms of the offer. Also, upon making an offer, an offeror may include as a condition to the contract the duration in which the offer will be available. If the offeree fails to accept the offer within this specific period, then the offer will be deemed as terminated.

[Sparky69]

Thanks Sparky. I just couldn't figure out how this event could delay the RV. It is an extension which allows for further examination and implementation of recognized improvements, and looks to me to be a win-win. Am I missing something?

Nope.Bang on Carrello.We have been expecting an RV for sometime now even before the current IMF funding expired in July so an extension should not affect the outcome of this at all.All the extension does is show the IMF still has faith in Iraq and is working WITH them.

I like your posts by the way!

Cheers,

Sparky

[Butifldrm]

ButifIdrm, in contract law it means:

An offer can be terminated on the grounds of rejection on the part of the offeree, that is if the offeree does not accept the terms of the offer. Also, upon making an offer, an offeror may include as a condition to the contract the duration in which the offer will be available. If the offeree fails to accept the offer within this specific period, then the offer will be deemed as terminated.

Call me a dreamer, but I hope Iraq can pay this debt of 6,093,153 SDR's,before the 7 month extention. In 2013 Iraq will scheduled to pay 123,289,854 in SDR's plus 6,093,153 SDR's. The IMF is going to hold them hostage for a very long time at these rates if they don't get a handle on this. The same thing happened to Turkey and they ended up having to LOP.