Press Release: IMF Stand -By Arrangement Review

[HowieC]

IMF Executive Board Completes First Review of Iraq’s Stand-By Arrangement

December 5, 2016

·         IMF disburses about US$617.8 million following completion of first review of Iraq’s reform program

·         The IMF-supported program includes measures to protect the poor, enhance financial sector stability, and curb corruption

·         Significantly improving public financial management will be important

The Executive Board of the International Monetary Fund (IMF) today completed the first review of Iraq’s three-year Stand-By Arrangement (SBA), which is designed to support Iraq’s economic reform program and restore fiscal balance over the medium term. The Board also completed financing assurances review under the SBA. The SDR 3.831 billion arrangement (about US$5.34 billion at the time of approval) was approved in July, 2016 (See Press Release No. 16/321) . The Board’s approval enables the disbursement of SDR 455 million (about US$617.8 million).

As part of the completion of the first review, the Board also approved Iraq’s request for a waiver for the non-observance of the continuous ceiling on new external arrears, and request to modify performance criteria. The Board also approved the request for a waiver of applicability for end of September targets of four performance criteria on the floor on gross international reserves (GIR) of the Central Bank of Iraq (CBI), the ceiling on net domestic assets (NDA) of the CBI, the ceiling on the stock of outstanding arrears to international oil companies and the ceiling on the stock of gross public debt, as well as a request for the rephasing of the arrangement.

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.

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

“The economic policies implemented by the Iraqi authorities to deal with the shocks facing Iraq—the armed conflict with ISIS and the ensuing humanitarian crisis and the collapse in oil prices—are appropriate. In the fiscal area, the authorities are implementing a sizable fiscal adjustment, mostly through retrenchment of inefficient capital expenditure while protecting social spending. In the external area, the authorities are maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy. Performance under the Stand-By Arrangement has been mixed; however, understandings have been reached on sufficient corrective actions to keep the program on track. Resolute implementation, together with strong international support, will be key.

“The revised fiscal program in 2016 and the draft budget in 2017 are aligned with the SBA. The composition of the fiscal adjustment should be improved over time by increasing non-oil revenue and reducing current expenditure, including the payroll and pension payments, and reforming the electricity sector, subsidies, and state-owned enterprises, in order to make room for larger but more effective and efficient investment expenditure that is conducive to growth.

“Significantly improving public financial management will be important. Arrears need to be assessed and paid following verification, and expenditure commitment and cash management should be strengthened to prevent the accumulation of new arrears.

“Measures to bolster financial sector stability include strengthening the legal framework of the Central Bank of Iraq, restructuring state-owned banks, and eliminating exchange restrictions. Measures to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation also need to be implemented.

“Implementation of the budget-sharing agreement with the Kurdistan Regional Government would put both the federal government and the Kurdistan Regional Government in a better position to address the shocks to the Iraqi economy.”

http://www.imf.org/en/News/Articles/2016/12/05/PR16540-Iraq-IMF-Executive-Board-Completes-First-Review-of-Stand-By-Arrangement

[vomer]

" ... eliminating exchange restrictions."

[calkid11]

Thank you 

[DinarThug]

Here's A Highlighted Copy Of It ...

 

(by don961)

http://www.imf.org/en/News/Art.....rrangement

IMF Executive Board Completes First Review of Iraq’s Stand-By Arrangement

December 5, 2016

• IMF disburses about US$617.8 million following completion of first review of Iraq’s reform program

• The IMF-supported program includes measures to protect the poor, enhance financial sector stability, and curb corruption

• Significantly improving public financial management will be important

The Executive Board of the International Monetary Fund (IMF) today completed the first review of Iraq’s three-year Stand-By Arrangement (SBA), which is designed to support Iraq’s economic reform program and restore fiscal balance over the medium term. The Board also completed financing assurances review under the SBA. The SDR 3.831 billion arrangement (about US$5.34 billion at the time of approval) was approved in July, 2016 (See Press Release No. 16/321) . The Board’s approval enables the disbursement of SDR 455 million (about US$617.8 million).

As part of the completion of the first review, the Board also approved Iraq’s request for a waiver for the non-observance of the continuous ceiling on new external arrears, and request to modify performance criteria. The Board also approved the request for a waiver of applicability for end of September targets of four performance criteria on the floor on gross international reserves (GIR) of the Central Bank of Iraq (CBI), the ceiling on net domestic assets (NDA) of the CBI, the ceiling on the stock of outstanding arrears to international oil companies and the ceiling on the stock of gross public debt, as well as a request for the rephasing of the arrangement.

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.

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

“The economic policies implemented by the Iraqi authorities to deal with the shocks facing Iraq—the armed conflict with ISIS and the ensuing humanitarian crisis and the collapse in oil prices—are appropriate. In the fiscal area, the authorities are implementing a sizable fiscal adjustment, mostly through retrenchment of inefficient capital expenditure while protecting social spending. In the external area, the authorities are maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy. Performance under the Stand-By Arrangement has been mixed; however, understandings have been reached on sufficient corrective actions to keep the program on track. Resolute implementation, together with strong international support, will be key.

“The revised fiscal program in 2016 and the draft budget in 2017 are aligned with the SBA. The composition of the fiscal adjustment should be improved over time by increasing non-oil revenue and reducing current expenditure, including the payroll and pension payments, and reforming the electricity sector, subsidies, and state-owned enterprises, in order to make room for larger but more effective and efficient investment expenditure that is conducive to growth.

“Significantly improving public financial management will be important. Arrears need to be assessed and paid following verification, and expenditure commitment and cash management should be strengthened to prevent the accumulation of new arrears.

“Measures to bolster financial sector stability include strengthening the legal framework of the Central Bank of Iraq, restructuring state-owned banks, and eliminating exchange restrictions. Measures to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation also need to be implemented.

“Implementation of the budget-sharing agreement with the Kurdistan Regional Government would put both the federal government and the Kurdistan Regional Government in a better position to address the shocks to the Iraqi economy.”

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: WAFA AMR

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

  

[Officiallytook]

this is already in play

[siberian_shaddow]

Much appreciated Yota, and Thugs. this is getting incredibly interesting.

[429]

Good find, HowieC!

[wildeman]

Thanks Thugs

[siberian_shaddow]

I apologize i meant HowieC

[tigergorzow]

HowieC Thanks,  DinarThug Thanks,  DV,  It seems from the articles above we have a Master Plan between GOI, KRG & The IMF, WB, etc.  The plan is in motion & being executed before our eyes.   I do believe much work is currently ongoing behind the scenes and we are about to see what is really behind the magic curtain.  Let's hope RV / RI of the IQD IMHO.

 

Keeping the faith!!

 

GO RV!!

Edited December 6, 2016 by tigergorzow

[Officiallytook]

Who's ready to see Iraq pull off this "voodoo" economics 

[yota691]

Iraq received an international loan and the IMF advises him to a financial understanding with Kurdistan

  2 hours ago

Iraq is facing a financial crisis and is in urgent need of money - a picture of the International Monetary Fund

 

 

 

K24 - Erbil

The International Monetary Fund said it delivered to Iraq amounted to $ 617.8 million as a down payment from a loan with a total value of $ 5.34 billion.

And Iraq, which relies on oil to finance Nfqath- need financial loans after declining global oil prices offset a budget deficit and an increase in spending because of the war on Daesh.

The IMF said on its website on Tuesday that it had completed the first review of the implementation of the standby credit agreement with the government for three years and decided to hand him over 617.8 million dollars.

The program which is supported by the International Monetary Fund on measures to protect the poor and strengthen the stability of the financial sector and curb corruption in Iraq includes.

The agreement has been ratified by the International Monetary Fund last week was Iraq allows for additional international aid worth $ 15 billion over the next three years to support the economy, which has been affected by the fall in oil prices since mid-2014.

Deputy Director General and Chairman of the Executive Board of the International Monetary Fund said Mitsuhiro Vorosawa The implementation of the budget-sharing agreement will put the Iraqi government and the Kurdistan Regional Government in the best for "counter" shocks facing the Iraqi economy mode.

The estimated budget for Iraq in 2017 revenues by 79.1 trillion dinars (67.5 billion dollars) while expenditure amounted to more than 100.6 trillion dinars (about $ 86.1 billion) with a deficit of 21.6 trillion dinars (about 18.5 billion dollars).

[yota691]

The International Monetary Fund recognizes Iraq's second batch of the loan worth 617.8 million dollars   Tuesday 6 December 2016 11:21              Alsumaria News / Baghdad  announced that the International Monetary Fund , on Tuesday, to hand over the Iraqi government a second batch of fund loan, pointing out that this installment amounting to 617.8 million dollars comes to addressing the needs of the balance of urgent payments, as revealed its approval of the request for Iraq to be excused from the declaration of non - commitment to reducing maximum continuous new external arrears.  The IMF said in a statement seen by Alsumaria News, " The Executive Board of the IMF completed the first review of the implementation of the standby credit held with Iraq agreement for three years , which aims to assist Iraq in the implementation of the economic reform program and restore the fiscal balance in the medium term , " adding that "under the present review , it may be for Iraq to $ 617.8 million disbursed."     Fund that " the Iraqi economic reform program supported by the Stand -By agreement aims to address the needs of the balance of urgent payments, and access spending to a level commensurate with the decline in world oil prices, and ensure the continuity of religion within the limits of unsustainable" and added, noting that " the program also includes measures to protect the poor and strengthening public financial management, and to support the stability of the financial sector, and curb corruption. "  The IMF "explained the Executive Board has agreed to Iraq 's request to be exempted from the declaration of non - compliance with the maximum continuous new external arrears, and the request to amend the performance criteria, in addition to Iraq 's request exemption from the applicability of the end of September the goals of the four performance standards regarding the minimum gross international reserves and the maximum condition of the net domestic assets of the Central Bank of Iraq and the maximum balance outstanding arrears owed to international oil companies and the maximum balance of total public debt, in addition to the request to amend the stages of implementation of the agreement. "  The Executive Board has agreed in July 2016 to prepare the credit agreement's $ 5.34 billion US dollars within the Iraqi economic reform program.

[Bama Girl]

I am so thankful that the IMF is doling the loan out in "piecemeal" style and keeping the hammer over Iraq's head. It is the only way they can insure that Iraq will do what they are supposed to do in anywhere close to a timely way with less corruption. I'm not convinced we would have ever seen our money without the intervention of the IMF, World Bank, and U.S. Treasury. Jmho.

[brob]

18 hours ago, HowieC said:

the authorities are maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy

So If they are maintaining the peg at 1:1 for the purpose of this loan because its stable (anchor) what will be there rate going forward? I find it hard to believe that they will rebuild with 1:1 and then drop it any further. I think the value of a dollar is too entrenched in the Iraqi psyche 

[Integrativedoc]

Wait the gurus all said the budget had to be passed and the Rv happen before this could happen???? Lol

[DinarThug]

A positive outlook for the Iraqi economy in the next year

 

After receiving the second installment of the IMF loan 
BAGHDAD / Mustafa al - Hashemi

At a time when Iraq got it on the second installment of the IMF loan of $ 617.8 million of the total value of the loan for a period of three years, which is estimated at $ 5.34 billion, an economic Academy called for the need to approach the amounts of such loans to achieve economic development, including the It would reduce dependence on external borrowing to finance the budget deficit.

The International Monetary Fund predicted an overall growth of real GDP of Iraq over thenext year to 8.1 compared to 7.6 for the current year within the selection of the 2012 economic and financial indicators to 2020. 

a at a time when the International Monetary Fund announced that its Executive Board completed the first review of the implementation of the standby credit held with Iraq agreement for three - year agreement , which aims to assist Iraq in the implementation of economic reform and the restoration of fiscal balance in the medium term program. 

The International Monetary Fund said in a statement, said the Executive Board exchange about 617.8 million dollars after the completion of the first review of the economic reform program in Iraq. 

The statement pointed out that the program which is supported by the fund include measures to protect the poor and strengthen the stability of the financial sector and curb corruption.  

The Executive Council has approved in July 2016 amounting to approximately $ 5.34 billion US dollars agreement on the date of approval. 

The statement said that Iraq 's economic reform program supported by the Stand -Byagreement aims to address the urgent needs of the balance of payments and access spending to a level commensurate with the decline in global oil prices and to ensure thecontinuity of religion within the limits can afford. 

The total investment
revealed IMF forecast for gross domestic investment for the next year it will amount to25.8 of GDP, it is also expected to decline in the total domestic consumption from 77.1 percent in 2016 to 73.3 percent in the next year. 

Cash reserves
and expected cash reserves report for Iraq to grow by 10.0 percent during 2017 as well as higher trade balance by 7.1 percent from the figure recorded this year. To that , the economic academic Dr Essam Mohamed Hassan need to benefit from this special IMF projections and applied to the ground by activating the productive sectors and conducting economic reforms , including giving Iraq a positive outlook stable raise the degree Ranked sovereign. 

Hassan said in an interview for the "morning", said the IMF is in fact accurate sergeant on the economies of member states totaling 119 countries, adding that out of the idea behind the establishment of this fund is to prevent the imbalance in the balance ofpayments of member and give loans to deal with such cases, pointing out that each Member State in the fund and pay their share of the accumulated amounts are lending tostates as needed. 

The balance of payments
and continued: The balance of payments on the cash balance that shows what the state of rights and Maalaha of the debts of other countries. If there is more than the rights ofits debt by Femizanha witnessing a surplus and if the opposite was the case Femizanha Adza.ohma whole resulting from business dealings with the countries of the world shows the importation 
and exportation. 

Between 2003 after the sale of Iraqi oil revenues escalated to high rates, it was up to $ 8 billion a month, but did not exploit a manner that achieves economic feasibility. The government began after the decline in oil revenues , influenced by the global prices ofcrude to resort to external borrowing from the International Monetary Fund to reduce the shortfall in the budget and austerity measures taken. 

Hassan warned of Iraq 's continued dependence on external borrowing to treat thebudget imbalances, saying it was the next generation 's wealth and should be maintained by increasing the contribution of the productive sectors in the growth of the overall economy of Iraq.

http://www.alsabaah.iq/Article.....?ID=127743

[TexasMike1958]

10 hours ago, yota691 said:

The International Monetary Fund recognizes Iraq's second batch of the loan worth 617.8 million dollars   Tuesday 6 December 2016 11:21              Alsumaria News / Baghdad  announced that the International Monetary Fund , on Tuesday, to hand over the Iraqi government a second batch of fund loan, pointing out that this installment amounting to 617.8 million dollars comes to addressing the needs of the balance of urgent payments, as revealed its approval of the request for Iraq to be excused from the declaration of non - commitment to reducing maximum continuous new external arrears.  The IMF said in a statement seen by Alsumaria News, " The Executive Board of the IMF completed the first review of the implementation of the standby credit held with Iraq agreement for three years , which aims to assist Iraq in the implementation of the economic reform program and restore the fiscal balance in the medium term , " adding that "under the present review , it may be for Iraq to $ 617.8 million disbursed."     Fund that " the Iraqi economic reform program supported by the Stand -By agreement aims to address the needs of the balance of urgent payments, and access spending to a level commensurate with the decline in world oil prices, and ensure the continuity of religion within the limits of unsustainable" and added, noting that " the program also includes measures to protect the poor and strengthening public financial management, and to support the stability of the financial sector, and curb corruption. "  The IMF "explained the Executive Board has agreed to Iraq 's request to be exempted from the declaration of non - compliance with the maximum continuous new external arrears, and the request to amend the performance criteria, in addition to Iraq 's request exemption from the applicability of the end of September the goals of the four performance standards regarding the minimum gross international reserves and the maximum condition of the net domestic assets of the Central Bank of Iraq and the maximum balance outstanding arrears owed to international oil companies and the maximum balance of total public debt, in addition to the request to amend the stages of implementation of the agreement. "  The Executive Board has agreed in July 2016 to prepare the credit agreement's $ 5.34 billion US dollars within the Iraqi economic reform program.

 

This seems to be good news.  The IMF would not have granted this loan without assurances that they would have a working budget.  So perhaps tomorrow we will see the execution of the next step of the RV plan when they pass the budget.  If not, then perhaps we will see executions of a different kind.  The Iraqi people cant take much more of this.    

Edited December 6, 2016 by TexasMike1958

[davis411]

This seems to be good news.  The IMF would not have granted this loan without assurances that they would have a working budget.  So perhaps tomorrow we will see the execution of the next step of the RV plan when they pass the budget.  If not, then perhaps we will see executions of a different kind.  The Iraqi people cant take much more of this. 

 

ya neither can davis

i got no problem putting on the hood and pulling the rope

lets go succkkkkkaaaas

[nannab]

 God I just love ya ta death Davis!  

[Theseus]

The biggest obstacle in this plan is arrears. The IMF has been harping on arrears. I just someone would bite these idjit in their rears to get them moving faster than what they are! Just 2.5 years to go!

Edited December 7, 2016 by Theseus

[millionaire in training]

13 hours ago, brob said:

So If they are maintaining the peg at 1:1 for the purpose of this loan because its stable (anchor) what will be there rate going forward? I find it hard to believe that they will rebuild with 1:1 and then drop it any further. I think the value of a dollar is too entrenched in the Iraqi psyche 

Possibly start out at $1.17 and go up from there.

[Wiljor]

Iraq, December 7, 2016 

• IMF disburses about US$617.8 million following completion of first review of Iraq’s reform program
• The IMF-supported program includes measures to protect the poor, enhance financial sector stability, and curb corruption
• Significantly improving public financial management will be important

The Executive Board of the International Monetary Fund (IMF) has completed the first review of Iraq’s three-year Stand-By Arrangement (SBA), which is designed to support Iraq’s economic reform program and restore fiscal balance over the medium term. The Board also completed financing assurances review under the SBA.

The SDR 3.831 billion arrangement (about US$5.34 billion at the time of approval) was approved in July, 2016. The Board’s approval enables the disbursement of SDR 455 million (about US$617.8 million).

As part of the completion of the first review, the Board also approved Iraq’s request for a waiver for the non-observance of the continuous ceiling on new external arrears, and request to modify performance criteria.

The Board also approved the request for a waiver of applicability for end of September targets of four performance criteria on the floor on gross international reserves (GIR) of the Central Bank of Iraq (CBI), the ceiling on net domestic assets (NDA) of the CBI, the ceiling on the stock of outstanding arrears to international oil companies and the ceiling on the stock of gross public debt, as well as a request for the rephasing of the arrangement.

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.

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

“The economic policies implemented by the Iraqi authorities to deal with the shocks facing Iraq—the armed conflict with ISIS and the ensuing humanitarian crisis and the collapse in oil prices—are appropriate. In the fiscal area, the authorities are implementing a sizable fiscal adjustment, mostly through retrenchment of inefficient capital expenditure while protecting social spending. In the external area, the authorities are maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy. 

“Performance under the Stand-By Arrangement has been mixed; however, understandings have been reached on sufficient corrective actions to keep the program on track. Resolute implementation, together with strong international support, will be key.

“The revised fiscal program in 2016 and the draft budget in 2017 are aligned with the SBA. The composition of the fiscal adjustment should be improved over time by increasing non-oil revenue and reducing current expenditure, including the payroll and pension payments, and reforming the electricity sector, subsidies, and state-owned enterprises, in order to make room for larger but more effective and efficient investment expenditure that is conducive to growth.

“Significantly improving public financial management will be important. Arrears need to be assessed and paid following verification, and expenditure commitment and cash management should be strengthened to prevent the accumulation of new arrears.

“Measures to bolster financial sector stability include strengthening the legal framework of the Central Bank of Iraq, restructuring state-owned banks, and eliminating exchange restrictions. Measures to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation also need to be implemented.

“Implementation of the budget-sharing agreement with the Kurdistan Regional Government would put both the federal government and the Kurdistan Regional Government in a better position to address the shocks to the Iraqi economy.”

 

iraq-businessnews

 

http://iraqdailyjournal.com/story-z14416952

[Big_J]