Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Iraq assures the International Monetary Fund (IMF) that it is adopting a new policy to diversify its sources of income


yota691
 Share

Recommended Posts

Friday may be the last chance for Alak to save his job.  Lets hope the CBI/GOI have chosen a path toward bringing the IQD to international status by moving from IMF article XIV into article VIII.  I believe he has still not addressed the move to privatise the State Owned Banks.

 

 

Iraq has an article IV consultation with the IMF on July 19th 2019 

 

 

 

July 19, 2019 Go to top of page
Country: Iraq

Title: Iraq - 2019 Article IV Consultation
  • Upvote 5
Link to comment
Share on other sites

I also find it very interesting that Friday the IMF will hold the second article IV consultation on Iraq this year, normally we should only see one a year.  The last one was in May 2019, only two months ago.  Let'shope for the best for Iraq.

 

 

IMF Staff Completes 2019 Article IV Mission on Iraq

May 6, 2019

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
  • Near-term vulnerabilities subsided in 2018, with the budget in surplus and a build-up in central bank reserves. Post-war reconstruction has been limited so far.
  • Fiscal deficits are projected to rise over the medium term, absent policy changes, and it will be hard to sustain capital spending. Growth is likely to slow markedly.
  • Tight control over current spending, particularly wages, and phased measures to boost non-oil revenue would make space for scaling up public investment and building fiscal buffers.

An International Monetary Fund (IMF) team led by Gavin Gray visited Amman from April 26 to May 2, to hold discussions with the Iraqi authorities in the context of the 2019 Article IV Consultation. At the end of the visit, Mr. Gray made the following statement:

 

“The end of the war with ISIS and a rebound in oil prices provide an opportunity to rebuild the country and address long-standing socio-economic needs. However, the challenges to achieving these objectives are formidable. The economic recovery has been sluggish, post-war reconstruction is limited, and large current spending increases risk placing the public finances and central bank reserves on an unsustainable path. Moreover, combatting corruption is critical to promote the effectiveness of public institutions and to support private-sector investment and job creation.

 

“Near-term vulnerabilities subsided in 2018, with the budget in surplus and a build-up in central bank reserves. Non-oil growth is expected to increase to 5.4 percent in 2019 on the back of higher investment spending. However, fiscal deficits are projected to rise over the medium term, requiring financing that may crowd out the private sector or erode central bank reserves. In these circumstances, it would be hard to sustain capital spending, and growth would slow markedly.

 

“Policy changes and structural reforms—including to improve governance—are therefore essential to maintain medium-term sustainability and lay the foundations for inclusive growth.

 

“Fiscal policy should aim to scale up public investment gradually while building fiscal buffers. To make space for this, staff recommends budgetary savings of around 9 percent of GDP over the medium term through tight control of current spending, particularly public-sector wages, and phased measures to boost non-oil revenue. Setting ceilings on current expenditure in the 2020 budget onwards would strengthen the fiscal framework’s capacity to support higher capital spending and to adapt to oil price shocks. Key reforms should include:

 

  • Containing public-sector wages. Spending pressures could be dampened in the short run through compensation measures such as capping allowances, bonuses and other non‑base wage payments, and by not fully replacing retirees. Structural measures will be required over the medium term, based on a functional workforce review as well as deeper civil service reform once new HR management and information systems are in place.

     

  • Electricity reforms are key to addressing the weak quality of service and reducing the high budgetary costs, due to modest tariff rates, chronic non-payment of electricity bills, poor maintenance and over-reliance on expensive generation sources, coupled with losses throughout the generation, transmission, and distribution process. It would be important to ensure that the poor and most vulnerable are protected throughout this reform.

     

  • Bolstering public financial management. Enhancing the legal framework and improving commitment and other control systems are key to minimizing misuse of public resources and restoring budgetary discipline.

 

In the financial sector, a robust plan to restructure the large public banks coupled with enhanced supervision is essential to secure financial stability and will help promote financial development and inclusion. Strengthening anti-money laundering and countering financing terrorism (AML/CFT) controls and oversight will help prevent Iraq’s financial sector from being misused for the laundering of criminal proceeds and terrorist financing.

 

Addressing governance weaknesses and corruption vulnerabilities is critical to achieving the described policy objectives. As a first step, the authorities need to develop a comprehensive understanding of the corruption risks present in Iraq and then implement policies to tackle these risks in a coherent and coordinated manner. The legislative framework needs to be strengthened to effectively prevent officials from abusing their position or misusing state resources. To this end, laws strengthening the asset declaration regime and criminalizing illicit gains should be rapidly adopted. Furthermore, the independence and integrity of bodies involved in combatting corruption should be ensured and the AML/CFT regime should be mobilized to support anti-corruption efforts.

The team will prepare a report that, subject to management approval, is tentatively scheduled to be considered by the IMF’s Executive Board in July 2019.

 

“The IMF team would like to thank the authorities for the candid and constructive discussions during this visit.”

https://www.imf.org/en/News/Articles/2019/05/06/pr19142-Iraq-imf-staff-completes-2019-article-iv-mission

  • Like 1
  • Thanks 4
  • Upvote 2
Link to comment
Share on other sites

Seriously. One can’t deny the progress they’re making and HOW CLOSE we really are.....with EVERYTHING happening right NOW.....like all in a row at the same time. I’m telling you there really isn’t another time like now and I feel we are there my friends. Hold on because this train is coming to a SUDDEN stop. 

  • Like 1
  • Upvote 1
Link to comment
Share on other sites

Lagarde officially announces its resignation from the International Monetary Fund

Lagarde officially announces its resignation from the International Monetary Fund
16 July 2019 07:10 PM

From: Ahmed Shawky

Directly : Christine Lagarde announced her resignation from the presidency of the International Monetary Fund officially as of September 12 / September next, following her nomination for the presidency of the European Central Bank.

Lagarde said in a statement on Tuesday: "I met with the Executive Board and submitted my resignation from the Fund as of September 12, and the decision to abandon my responsibilities as the Fund Manager, which I have announced previously, will remain in force until then."

Lagarde said she had resigned with more clarity now on the process of her candidacy for the presidency of the European Central Bank and the time it takes, noting that it has taken this decision in the best interest of the Fund as it will accelerate the process of choosing the alternative.

"The Executive Board will now take the necessary steps to move forward in the process of selecting a new Director General. David Lepton is still our Acting Managing Director," Lagarde said.

Earlier this month, the European Council nominated Lagarde as an alternative to Mario Draghi as European Central Bank, whose term expires in October.

  • Like 2
Link to comment
Share on other sites

9 hours ago, Butifldrm said:

Friday may be the last chance for Alak to save his job.  Lets hope the CBI/GOI have chosen a path toward bringing the IQD to international status by moving from IMF article XIV into article VIII.  I believe he has still not addressed the move to privatise the State Owned Banks.

 

 

Iraq has an article IV consultation with the IMF on July 19th 2019 

 

 

 

July 19, 2019 Go to top of page
Country: Iraq

Title: Iraq - 2019 Article IV Consultation

Yes my concern as well 

  • Like 1
Link to comment
Share on other sites

Statement by Managing Director Christine Lagarde

July 16, 2019

Ms. Christine Lagarde, Managing Director of the IMF, issued the following statement today:

“I have met with the Executive Board and submitted my resignation from the Fund with effect from September 12, 2019. The relinquishment of my responsibilities as Managing Director announced previously will remain in effect until then. With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor. 

“The Executive Board will now be taking the necessary steps to move forward with the process for selecting a new Managing Director. David Lipton remains our Acting Managing Director.”

***

The Fund will communicate on the Executive Board’s process of selecting a new Managing Director in due course. Mr. David Lipton remains Acting Managing Director.

IMF Communications Department
MEDIA RELATIONS
  • Upvote 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.