Finance: Iraq will receive a World Bank loan before the end of this year

[yota691]

Finance: Iraq will receive a World Bank loan before the end of this year

December 19, 2015

 

 

 

 

Our economy / Baghdad

The Ministry of Finance, the signing in Washington on the World Bank's $ 1.2 billion loan agreement and said Iraq's ambassador in Washington, Luqman Philly signed the loan agreement on Friday on behalf of the Government of the Republic of Iraq, and Iraq will get the loan amount during the next few days and by the end of this year. "

 

According to a statement of the ministry today and agency of our economy news received a copy of "The Board of Directors Executive of the World Bank agreed to provide a loan of 1.2 billion dollars for Iraq in its meeting held first on Thursday." 
He explained that "the Ministry of Finance has sought for several months to get a loan for budget support from the Bank International implementation of the budget law No. 2 of 2015, which authorized the Minister of Finance to borrow the power of the World Bank. 
"The Ministry of Finance to the last negotiations for the loan," noting that "the beginning was when he met Finance Minister Hoshyar Zebari, President of the World Bank in Baghdad Hafez Ghanem at the end of the month of April and during which the agreement on the presence of a technical delegation from the bank to Baghdad. "

[Laid Back]

I see a sense of urgency to get things done before the end of 2015.

2016 will be our year.!!

Go budget

Go loans

Go CBI

Go dinar

Go increase exchange rate

Go $1:1

[sandfly]

HOPE SO LB

[wildeman]

Same hear, hoping LB

[Flamtap]

That sounds like something I can handle LB. Come on Iraq..........make it so!

[calkid11]

Thank you Yota

[yota691]

Finance: World Bank loan will arrive during the next few days

December 20, 2015

 

 

 

 

Our economy / Baghdad
and the Ministry of Finance said it has signed an agreement to borrow $ 1.2 billion from the World Bank, and the loan will arrive during the next few days before the end of this year. 
She said the ministry in a statement seen by the agency, "our economy" news that "the Board of Directors Executive of the World Bank agreed to loan for Iraq at its first on Thursday, which is sought by the ministry for several months in order to support the budget. " 
The ministry added that "a team of World Bank experts met with officials, the Ministry of Finance in May, to determine the financial reform package to be taken, it was the implementation of all required reforms ". 
The World Bank and asked the Ministry of Finance to close the financial gap and reach an agreement with the International Monetary Fund as a condition for the loan was to reach an agreement with the Fund and prove lack of financial gap between public expenditure and public revenue and finance.

[yota691]

Finance: Snstlm World Bank loan of $ 1.2 billion before the end of this year

History of edits:: 2015/12/19 17:18 • 99 visits readable

[baghdad-where] 
it announced that the Ministry of Finance, the signing in Washington on the World Bank's $ 1.2 billion loan agreement and said Iraq's ambassador in Washington, Luqman Philly signed the loan agreement on Friday on behalf of the Government of the Republic of Iraq, and Iraq will get the loan amount during the days the few coming before the end of this year. "
 

According to a statement of the Ministry today received by the agency all of Iraq [where] a copy of the "Board of Directors Executive of the World Bank agreed to provide a loan of 1.2 billion dollars for Iraq in its meeting held first on Thursday." 
He explained that "the Ministry of Finance has sought for several months to get a loan to support the the budget of the World Bank in implementation of the budget law No. 2 of 2015, which authorized the Minister of Finance to borrow the power of the World Bank. 
"The Ministry of Finance to the last negotiations for the loan," noting that "the beginning was when he met Finance Minister Hoshyar Zebari, President of the World Bank in Baghdad Hafez Ghanem at the end of the month of April and during which the agreement on the presence of a technical delegation from the bank to Baghdad. 
"The statement said that" the World Bank team of experts met with officials in the Ministry of Finance in Baghdad beginning of the month of May 2015, were identified financial reform package to be taken, and the impact of This was a meeting held in Beirut the end of June 2015, was attended by Farid Belhaj head of the Middle East and North Africa Department of the World Bank Group experts and representatives of finance and planning, oil, electricity and Labour and Social Affairs and the Central Bank of Iraq and the ministries. 
"He pointed to prepare the reforms and to identify those who carried out and in the end last September has been the implementation of all required reforms and with the help of the Office of the Prime Minister to the fact that some of the reforms require the approval of the Prime Minister. 
The statement continued that "In an effort to get a loan and the Minister of Finance held a series of meetings with officials at the World Bank and the International Monetary Fund, as well as officials at the Treasury Department US during the annual meetings of the Bank and IMF in Lima, Peru in the ninth and tenth of the month of October 2015. 
"The Ministry of Finance that" In the meantime, the World Bank asked the Ministry of Finance to close the financial gap and reach an agreement with the International Monetary Fund as a condition for the loan so held Meetings with the International Monetary Fund experts at the beginning of November under the chairmanship of the Minister of Finance and the presence of the governor of the Iraqi Central Bank and Financial Advisor to the Prime Minister and representatives of the Finance and Planning and oil ministries and the Central Bank of Iraq and the Office of Financial Supervision was made ​​to reach an agreement with the international progress Fund and prove lack of financial gap between public expenditure and public revenue and finance. 
"The statement concluded by saying," Because of the efforts in sustaining public spending and provide the necessary financing but the Fund request a reduction of public spending by one trillion dinars in the 2016 budget, and here there was a need for a new dialogue at the beginning of the month of December was conducted this Dialogue from a closed telephone circuit between the representatives of the International Monetary Fund and representatives of the Ministry of Finance and the Office of the Prime Minister has been successful this has been the signing of the loan agreement on December 18, 2015, by Lukman Faili Iraq's ambassador in Washington on behalf of the Government of the Republic of Iraq, and Iraq will get the loan amount during the next few days and by the end of this year. 
"The World Bank, announced yesterday agreed to give Iraq a loan of one billion and 200 million dollars to assist in controlling the financial and improve the energy sector conditions, and to compensate the decline in oil prices and rising security costs. 
It is noteworthy that , House of Representatives approved in its meeting last Wednesday, the next year's budget in 2016 a total of more than 105 trillion and 890 billion dinars expenses deficit accounted for 22.8%. 
The total revenue which 81 trillion and 700 billion dinars oil revenues, which accounted for 69 trillion and 773 billion dinars The increase of 85.1% from total revenues, while non-oil revenues amounted to more than 11 trillion and 927 billion dinars The increase of 13.6% of total revenues. 
and formed the current expenditures [operating] a salary and other more than 80 trillion dinars, and increase of 76% [of total expenditures 105 trillion dinars] while The investment expenditure of more than 25 trillion dinars, and increase of 23.8% .anthy

[ASUMama]

Yota, do you think this loan has anything to do wit an impending RV?

[Candy01]

PRAYING HARD, Laid Back!!

 

:praying:

[yota691]

Yota, do you think this loan has anything to do wit an impending RV?

That is the rumor going around...we will have to wait and see...and GM DV and Merry Christmas to All....

[captl1]

Good morning Yota. This certainly gets us closer. Merry Christmas.

[yota691]

PRESS RELEASE from World Bank

US$1.2 billion to support Iraq Amid Challenging Economic Situation

December 17, 2015

 

 

WASHINGTON, December 17, 2015 -- A US$1.2 billion loan will support Iraq in strengthening fiscal stabilization and improving efficiency in the energy sector to help counter the effects of the drop in oil prices and rising security costs.

The World Bank Group’s Board of Directors acknowledged the Government of Iraq’s engagement in a rigorous reform program and approved the Emergency Fiscal Stabilization, Energy Sustainability and State-Owned Enterprise Transparency Development Policy Financing. The operation is aligned with the Government’s recovery blueprint for 2015-2018, that committs to reforms to achieve inclusive growth, efficient service delivery and improved social protection.

“The World Bank’s support for the current reform momentum in Iraq is very important at this critical time as the country grapples with long standing challenges in the financial sector, public financial management and energy efficiency and security,” said Ferid Belhaj, World Bank Director for the Mashreq Region.

The proposed operation will focus on reforms in three areas. Reforming the public wage system by reducing the highest salaries and increasing the lowest ones will improve expenditure allocation. There will also be reforms in public investment and debt management, and the pension scheme. Reducing gas flaring, expanding gas-to-power generation and reducing electricity subsidies will help support more  sustainable energy supply. A third area of reform focuses on addressing the lack of transparency among financial and non-financial state-owned enterprises.

The support to Iraq is very much in line with the World Bank’s strategy for the Middle East and North Africa, which was launched in October. This strategy builds on four pillars: Renewing the social contract in fragile states in the region; Regional cooperation; Resilience to refugee shocks; and Reconstruction and Recovery where needed. And to achieve these goals, calculated risk taking in countries such as Iraq is required. 

“The Development Policy Framework is a critical part of the Bank’s efforts to help address fragility and increase stability in Iraq and the broader Middle East and North Africa region,” said Eric Le Borgne, the World Bank’s Lead Economist for Iraq. 

With the US$1.2 billion DPF, the World Bank’s present engagement in Iraq rises to nearly US$2 billion, including US$355 million for the Transport Corridors Projects to improve transport connectivity and road safety, and US$350 million for the Emergency Operation for Development, which supports the reconstruction and rehabilitation of municipalities that have suffered recent damages from the ongoing conflict.    

and from the World Bank web site...

FEATURE STORY

A Risk Worth Taking: Supporting Iraq’s Stability & Economy to Avoid Greater Risks

December 17, 2015

 

 

 

 

Aerial photo of the city of Baghdad, Iraq

 

 

Shutterstock l rasoulali

STORY HIGHLIGHTS

• Iraq’s is reeling from the impact of low oil prices, 4 million internally displaced, and 250,000 Syrian refugees.

• The World Bank is focusing on the roots of instability in countries like Iraq as a new strategy.

• Iraq’s multiple frontiers mean that what happens there affects the whole Middle East.

Iraq is facing a sharp increase in public expenditure at a time when the price for oil, the source of 90% of its revenue, is half what it was two years ago. Iraq’s economy is reeling from the impact of coping with no less than 4 million of its citizens internally displaced by conflict, as well as having to fight the Islamic State (IS) insurgency, and manage the pressure of hosting almost 250,000 Syrian refugees.

The World Bank Group is trying to tackle the roots of instability in countries like Iraq as part of a new strategy for the the Middle East and North Africa (MENA) region. The Group’s International Bank of Reconstruction and Development (IBRD) has issued Iraq US$1.2 billion in Development Policy Financing (DPF)—or budget support—to help it weather the crisis. This is the second time in 2015 the Bank has moved to provide support to Iraq. In July, the Bank provided Iraq with a US$350 million loan for an emergency operation to restore basic infrastructure and public services to Iraqi citizens in municipal areas liberated from the so called Islamic State, and now under government control.

Iraq is one of the largest economies in the Middle East, with a GDP of almost US$200 billion. Its central location and multiple frontiers mean it is also strategic; what happens in Iraq affects the region as a whole. “The economy is going through an extremely difficult time, and people’s suffering borders the unbearable. We think that helping the Iraqi economy recover fast, and helping Iraq stabilize, will have great benefit not just for the people of Iraq but also for the region,” said Ferid Belhaj, Country Director for the Mashreq Region.

“Iraq is a deeply oil-dependent economy. When the price of oil declines, you really see the impact on the country’s economy. This year, economic growth will be near zero, and income per capita has fallen sharply since 2013,” said Auguste Kouame, World Bank Practice Manager for Macro and Fiscal Management. “Low oil prices are likely to persist, and given the fluid security situation, if we don’t help now, the situation in Iraq could deteriorate to the point where the cost of helping would be even higher than it is today.”

This DPF loan focuses on three areas, the first of which is improving public expenditure managment. In November, the government reduced the salaries of highest paid civil servants and increased those of the lowest paid civil servants, thus acting on redistribution and easing social tensions at neutral cost. Iraq has taken steps to halt 30,000 government pensions from going to beneficiaries who had not earned them. The government has also created a public debt management unit and is better managing public investment programs by choosing projects that have been properly reviewed through feasibility studies.

Second, the DPF is supporting improvement in the sustainability of energy supply. Iraq is taking steps to reduce gas flaring from its oil wells and plans to put in what’s needed to harness natural gas and use it to generate electricity. This reform will have significant benefits for public financing, the country’s external position, as well as for the environment. Iraq uses oil to run its power stations and imports some diesel. To further improve public finances, heavy consumers of electricity, such as industries and businesses using power for 24hrs/7 days a week, will see the subsidies they used to receive on energy, reduced.

Third, the loan is supporting an improvement in the transparency of state-owned enterprises. A database of state-owned enterprises, known as “SOEs”, has to be created. Often non-existent or underperforming, many of these SOE have previously been used as employment schemes. The government has also said it will allow private banks to do business with it in competition with Iraq’s two large state-owned banks. Iraq’s banking sector will be expected to comply fully with international regulations designed to stop money laundering and the financing of terrorism. If successfully implemented, the reforms supported by this loan will help stabilize the economy and lay the foundations for inclusive growth for all Iraqis.

[SgtFuryUSCZ]

***///

 

Yep, yep, yep... just about the right amount to bridge that little short-fall they need to cover

 the outstanding IQD we're holdin' fer exchange -- at a decent rate !

YAY !   

 

 

 

.

Edited December 24, 2015 by SgtFuryUSCZ

[Candy01]

PRAYING HARD, SgtFury!

 

:praying:

[SgtFuryUSCZ]

PRAYING HARD, SgtFury!

 

:praying:

***///

 

From yer mouth to God's ears there, CANDY Cane !       

[djgabrielie1]

Merry Christmas

 

[Boozer]

a few things you need to get done before you get the loan, and a short time to get it done. 6 days left.. not sure Iraq can move that fast..PROVE me wrong Boy's...

[tigergorzow]

DV, It's time Iraq to join the Big Boys and take your IQD international asap!!

Keeping the faith!!

GO RV!!

[Candy01]

GREAT posts, Boozer and tiger!