IMF agreement test for Iraq

[Gypsygirl11]

And we wait...

[Boozer]

I know this bad to say but what happened yesterday, may be the turning point to get things done, and put a fire under the PM azz... he now has some things to prove and a short time to do it or the protesters will be on his azz big time. #1 on your list  MALIKI has to GO !!!!!!!!!

[yota691]

Parliamentary Finance for "light": the failed administrations are GATT country's external borrowing

 views 53 viewsin:July 4, 2016

Nur News / Baghdad

Confirmed member of the Finance Committee parliamentary Najiba Najib, said on Monday that departments failed fiscal policies pursued by successive central governments are to blame for the atmosphere Iraq external borrowing to cover the deficit in the budget.

She said Najib's "light News" that "the financial crisis will worsen guardian Iraq if the central government did not correct fiscal policy," stressing that "borrowing from the International Monetary Fund Sakpl Iraq and the coming generations complex financial restrictions and obligations."

The MP demanded that "the disposal of the money that was borrowed for the development of resources in raising the standard of living of the Iraqi people," noting that "there are going to be controlled by the parliamentary finance committee and lenders on the mechanism of the disbursement of the money."

It also demanded "the allocation of part of the loan of the International Monetary Fund for the Kurdistan Region that the federal and provincial loan is part of federal Iraq."

It is noteworthy that Iraq obtained a loan from the International Monetary Fund $ 5 billion to cover the deficit in the budget.

[George Hayduke]

IMF Executive Board Approves US$5.34 billion Stand-By Arrangement for Iraq

Press Release No. 16/321
July 7, 2016

The Executive Board of the International Monetary Fund (IMF) today approved a three-year Stand-By Arrangement (SBA) for Iraq for SDR 3.831 billion (about US$5.34 billion, or 230 percent of quota) to support the government’s economic reform program. The Board’s approval enables the disbursement of SDR 455 million (about US$634 million). In July 2015, Iraq received disbursement under the Rapid Financing Instrument equivalent to SDR 891.3 million (about US$1.24 billion at the time of approval).

Iraq’s economic reform program supported by the SBA aims to address the urgent balance of payments need, bring spending in line with lower global oil prices, and ensure debt sustainability. The program also includes measures to protect the poor, strengthen public financial management, enhance financial sector stability, and curb corruption. Iraq will require the support of the international community to implement these policies.

The IMF’s Management today also completed the first and second reviews of the Staff-Monitored Program (SMP) with Iraq that was approved by the Managing Director on January 12, 2016. (See Press Release No. 16/04).

Following the Executive Board’s decision, Mr. Min Zhu, Deputy Managing Director and Acting Chair of the Board, issued the following statement:

“The Iraqi economy has been hit hard by the double shock arising from the ISIS attacks and the sharp drop in global oil prices.

“The policies put in place by the authorities to deal with this double shock are appropriate. In the fiscal area, the authorities are implementing sizable fiscal adjustment, mostly through inefficient capital expenditure retrenchment while protecting social spending, and financing. In the external area, the authorities are maintaining the peg to the U.S. dollar, which provides a key anchor to the economy.

“The fiscal adjustment envisaged in 2016–19 is appropriate to address the pressure from lower oil revenue and higher humanitarian and security spending. But the composition of the fiscal adjustment should be improved over time, in order to make room for increased but more efficient investment expenditure. Overhaul of the public financial management system is necessary to improve fiscal discipline and the quality of spending. Implementation of the budget-sharing agreement with the Kurdistan Regional Government will put both the federal government and the Kurdistan Regional Government in a better position to address the ISIS attacks and the oil-price shock.

“The accumulation of large external arrears to international oil companies and domestic arrears in 2015 was unfortunate. Existing arrears should be paid down, following a due process of checking their validity, and the implementation of controls to prevent further accumulation of arrears to international oil companies and domestic suppliers. The prevention of future external arrears would ensure that the envisaged oil revenue stream—needed to finance public expenditure and imports—is achieved; the prevention of future domestic arrears would preserve financial sector stability.

“To strengthen growth and financial sector stability, the legal framework of the Central Bank of Iraq needs to be strengthened, state-owned banks need to be restructured, and exchange restrictions need to be gradually removed. Additionally, measures need to be implemented to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation.”

ANNEX

Recent Economic Developments

Iraq has been hit hard by the conflict with ISIS and the precipitous fall in oil prices. The ongoing armed conflict with ISIS continues to strain the country’s resources and is resulting in new waves of internally displaced people, now reaching over 4 million. Around 10 million people, comprising some 27 percent of the population, are in need of humanitarian assistance. The steep fall in oil prices is causing a large external shock to the balance of payments and budget revenue, which depend predominantly on oil export receipts. Real GDP contracted by 2.4 percent in 2015, in spite of a 13 percent increase in oil production. The non-oil economy experienced broad-based economic contraction (-19 percent) as a result of the conflict with ISIS and the ongoing fiscal consolidation.

The authorities are responding to these challenges with a mix of fiscal adjustment and financing, while maintaining their commitment to the exchange rate peg and protecting social spending such as health, education, food and agricultural subsidies, and transfer to internally displaced people and refugees.

Program Summary

The economic program aims to stabilize the Iraqi economy which has been hit by the double shock of a steep decline in oil prices and ongoing ISIS conflict. The program is centered around four pillars:

Managing external pressures. Key measures include maintaining the exchange rate peg as the key nominal anchor; gradually removing the remaining exchange restrictions; and strengthening the anti-money laundering and combatting of financing of terrorism (AML-CFT) framework to stem illegal and speculative demand on foreign exchange.

Implementing fiscal consolidation while protecting the poor. The government will continue to implement fiscal consolidation, mostly through inefficient capital expenditure retrenchment, while protecting social spending. This will help to bring spending to a sustainable level given the much lower level of oil revenue. The government will also design and implement deeper grounded revenue and expenditure reforms to hold the lid on the non-oil primary balance and achieve debt sustainability. Efforts are underway to implement the budget-sharing agreement with the Kurdistan Regional Government.

Strengthening public financial management and curbing corruption. To improve fiscal discipline and the quality of spending, the Ministry of Finance will strengthen public financial management legislation, report fiscal tables in compliance with international standards, enhance commitment controls and cash management, conduct regular surveys and audits to monitor and curb arrears, reform public investment management, and improve debt management with the help of technical assistance.

Monitor financial risks to preserve financial sector stability. Important steps are being taken to strengthen the legal framework of the Central Bank of Iraq following on the Fund’s recent safeguards assessment, as well as to restructure state-owned banks and strengthen prudential standards and bank supervision with the support of external consultants. Additionally, measures will need to be implemented to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation to help improve the integration of Iraq’s financial system into the global economy.

Additional Background

Iraq became a member of the IMF on December 27, 1945 and has an IMF quota of SDR 1,663.80 million (about US$2.32 billion).

For additional background on the IMF and Iraq see:

http://www.imf.org/external/country/irq/

[BJinMontreal]

" Iraq’s economic reform program supported by the SBA aims to address the urgent balance of payments need, bring spending in line with lower global oil prices, and ensure debt sustainability. The program also includes measures to protect the poor, strengthen public financial management, enhance financial sector stability, and curb corruption. Iraq will require the support of the international community to implement these policies."

 

Gotta like that "curb corruption" part ...

[Garhy]

"Managing external pressures. Key measures include maintaining the exchange rate peg as the key nominal anchor; gradually removing the remaining exchange restrictions;"

What does this mean?

[chinadawg]

4 hours ago, Garhy said:

"Managing external pressures. Key measures include maintaining the exchange rate peg as the key nominal anchor; gradually removing the remaining exchange restrictions;"

What does this mean?

when that happens...the fat lady will clear her throat.

[yota691]

IMF gives loans to Iraq by more than $ 5 billion

By Roudao 8 hours ago

U.S. dollar

Roudao- Erbil IMF decided, give Iraq loans worth more than $ 5 billion and $ 34 million.



It comes loans as part of a plug in the general budget for 2016, it is also scheduled to give financial institutions over the next three years, $ 15 billion for Iraq. The demands Kurdistan Regional government to send their share of loans granted to Iraq, but it is still uncertain whether the Iraqi government , which cut off the Kurdistan Regional salaries since 2014 would send those interests or not.

[Laid Back]

Iraq got the money because they're doing what the IMF told them to do.

Now is time to start removing all the remaining exchange restrictions 

Go CBI 

Go increase exchange rate 

Go $1:1+

 

[AJC]

Sounds like good news !!!!!!

[yota691]

International Monetary give Iraq credit line worth $ 5.34 billion

History of edits:: 08.07.2016 12:51 • 56 visits readable

[Where - Baghdad] 
and approved by the International Monetary Fund, to give Iraq a line of credit worth $ 5.34 billion to help it overcome the financial crisis faced after the deterioration of oil prices and the war against terrorism.

The fund said in a statement, his Thursday July 7, that the Iraqi government will get the case on an initial loan of $ 634 million, while it must implement economic reforms series for the rest of the installments of this assistance plan for three years. 
The statement quoted Maine Chu, a manager assistants in the fund, saying: " the Iraqi economy has suffered severely from the double trauma of the organization of the Islamic state and very low attacks in oil prices." 
Fund expressed in his statement expressed concern especially about the arrears "big" accumulated on Baghdad ,which is struggling to meet its financial obligations. the 
fund was granted in Baghdad in July 2015 a loan of $ 1.24 billion to help the advancement of the public own finances. Under the previous rapid financing tool program. 
Iraq is going through a financial crisis due to falling oil prices , which constitutes 90% of the public budget is paid to borrow from the International Monetary Fund and the World Bank and earned them about $ 15 billion received by over three years.

 

[yota691]

IMF board unbelievable to arrange for Iraq worth $ 5.34 billion

 

 

Friday 08-07-2016 | 10:10:41

 

 

 

XYZ

Twilight News / IMF said that its Executive Board approved a new arrangement under the request of Iraq for three years, worth $ 5.34 billion to support Baghdad's efforts in the face of low oil prices and to ensure the ability to service debt.

The IMF said in a statement that approval will allow the immediate disbursement of about $ 634 million under the program.

Iraq was awarded in July 2015, about $ 1.24 billion under the previous rapid financing tool program.

 

[Big_J]

GM DV. 

[Wiljor]

IMF APPROVES $5.3 BILLION AID PROGRAM FOR IRAQ

Iraq, July 9, 2016  The International Monetary Fund (IMF) approved about US $5.34 billion aid program for Iraq on Thursday as a part of the financial support for the economic reform program that the federal government of Iraq is implementing.   Iraq is currently suffering from a critical economic and political turmoil and has faced a substantial deficit in its federal budget due to the dramatic drop of oil price. The country almost entirely depends on oil revenue.   On Thursday, the Executive Board of the IMF approved a three-year Stand-By Arrangement (SBA) for Iraq for about $5.34 billion to support the government’s economic reform program.   “Iraq’s economic reform program supported by the SBA aims to address the urgent balance of payments need, bring spending in line with lower global oil prices, and ensure debt sustainability,” the IMF statement continues. “The program also includes measures to protect the poor, strengthen public financial management, enhance financial sector stability, and curb corruption. Iraq will require the support of the international community to implement these policies.”   Min Zhu, Deputy Managing Director and Acting Chair of the Executive Board, stated that the economy of Iraq is mainly hit by the rise and the attacks of the Islamic State (IS) and the sharp drop in global oil prices.   “The policies put in place by the authorities to deal with this double shock are appropriate. In the fiscal area, the authorities are implementing sizable fiscal adjustment, mostly through inefficient capital expenditure retrenchment while protecting social spending, and financing,” Zhu said. “In the external area, the authorities are maintaining the peg to the US dollar, which provides a key anchor to the economy.”   Zhu also highlighted Baghdad’s budget sharing agreement with the Kurdistan Regional Government (KRG) as a way to put both the federal government of Iraq and the KRG in a better position to combat IS attacks and the oil-price shock.   He advised Iraq that in order to empower growth and gain financial stability, the legal framework of the Central Bank of Iraq has to be strengthened, state-owned banks be restructured and restrictions of exchange will be gradually removed.   “Additionally, measures need to be implemented to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation,” Zhu added.   (kurdistan24)   http://iraqdailyjournal.com/story-z13490027

[yota691]

IMF recognizes credit program for Iraq for $ 5.34 billion

 

 

Economy News / Continue ...       The IMF said that its Executive Board approved a new credit program under the request of Iraq for three years, worth $ 5.34 billion to support Baghdad's efforts in the face of low oil prices and to ensure continuity in the debt service. The fund said in a statement that the approval will allow the immediate disbursement of about $ 634 million under the program. Iraq was awarded in July 2015 to about $ 1.24 billion under the previous program for the rapid financing tool. He noted that the Iraqi authorities have pledged to maintain its currency peg to the dollar and cut capital spending is effective while protecting social spending. He said that public finance management reform will put the government in a better position to fight the militants to organize the Islamic state and to overcome the low oil prices. Said Zhu Min, deputy executive director of the IMF in a statement that "the Iraqi economy has been hit hard by the double shock of the organization of the Islamic state and the sharp drop in attacks in world oil prices .. policies prepared by the authorities to deal with this dual shock that occasion." Zhu said that the huge backlog of Foreign Affairs of Iraq to the international oil companies and arrears of domestic debt in 2015, "something unfortunate" and should be reduced. The program also required Iraq to take important steps to strengthen the anti-corruption laws and prevent money laundering and countering the financing of terrorism.       mm
Views 8   Date Added 09/07/2016 - 20:20   Last updated 07/09/2016 - 20:49   No. Content 4242

[rv2016]

IMF calls on the Government of Abadi to achieve reforms in exchange for loans

 

July 9, 2016

 

BAGHDAD / News Network Iraq and the IMF agreed on Saturday to give Iraq a line of credit worth $ 5.34 billion to help it overcome the financial crisis faced after the deterioration of oil prices and the war against Alarhab.ooodh Fund said in a statement, that the Iraqi government will take place in case a loan an initial value of $ 634 million, while it must implement a series of economic reforms to get the rest of the installments of this assistance plan for three years. 

 

The statement quoted Zhou Min, one of the assistant directors of the Fund, as saying: "Iraq's economy has suffered severely from the double trauma of the organization of the Islamic state and severe attacks decline in oil prices." Fund expressed in his statement expressed concern about the arrears, especially the "big" accumulated on Baghdad, which is struggling to meet its financial obligations.

 

The fund was granted in Baghdad in July 2015 a loan of $ 1.24 billion to help the advancement of the public own finances. Under the previous rapid financing tool program.

 

Iraq is going through a financial crisis due to falling oil prices, which constitutes 90% of the public budget is paid to borrow from the International Monetary Fund and the World Bank and earned them about $ 15 billion received by over three years.

 

http://aliraqnews.com/%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D9%8A-%D9%8A%D8%AF%D8%B9%D9%88-%D8%AD%D9%83%D9%88%D9%85%D8%A9-%D8%A7%D9%84%D8%B9%D8%A8%D8%A7%D8%AF%D9%8A-%D8%A7%D9%84%D9%89-%D8%AA%D8%AD/

[Gypsygirl11]

"Must implement economic reforms to get the rest of the installments"  --  Yes please!

[Garhy]

 “In the external area, the authorities are maintaining the peg to the US dollar, which provides a key anchor to the economy.”

This I don't like however. Does this mean what I think it means? Someone please say no?

[millionaire in training]

OK now we're talking.......IMF is telling Iraq that if they want the rest of their loan they need to activate the reforms.   

Way to go IMF.   

Make them do it....make them do it" NOW."  

Talk about pushing forward...... Iraq is ready....and so are we......  Lets go people dance with me   

[Candy01]

On ‎7‎/‎9‎/‎2016 at 2:15 PM, Gypsygirl11 said:

"Must implement economic reforms to get the rest of the installments"  --  Yes please!

[Gypsygirl11]

1 hour ago, Candy01 said:

Candy you r so cute. I hope this speculation especially works out for you!

[ChuckFinley]

It is all about the money. Regardless of what side it is, if you hold the money and force them to work together they will. Love to see the pressure.

[Candy01]

1 hour ago, Gypsygirl11 said:

Candy you r so cute. I hope this speculation especially works out for you!

Thanks SO much Gypsygirl11!!!

[TennesseeCherokee]

On July 7, 2016 at 3:54 PM, BJinMontreal said:

" Iraq’s economic reform program supported by the SBA aims to address the urgent balance of payments need, bring spending in line with lower global oil prices, and ensure debt sustainability. The program also includes measures to protect the poor, strengthen public financial management, enhance financial sector stability, and curb corruption. Iraq will require the support of the international community to implement these policies."

 

Gotta like that "curb corruption" part ...

Yes! .......Sadr has laid down the law, today, per Yota's article....saying in so many words, i am paraphrasing here, " the corrution is gonna end when Mosul is liberated".

[SnowGlobe7]

ok so here goes the cat math...

5 billion divided by 34 million....assuming there is translation issues comes to 147.06 rounding up

move the three decimals and we have 15 cent revalue

 

Roudao- Erbil IMF decided, give Iraq loans worth more than $ 5 billion and $ 34 million.