The Board of the International Monetary Fund approved a standby credit loan SBA for a period of three years for Iraq and the rights of special drawing SDR value of 3.831 billion units (approximately: 5.34 billion, or percentage of 230%); to support the economic reform program adopted by the Iraqi government that the council authentication managed 455 Exchange million units of Special Drawing rights (about 634 million dollars) in July Iraq received a boost on according to the rapid financing funding instrument, ie the equivalent of one million units of Special Drawing rights (approximately 1.24 billion in the approval time).
The reform of the Iraqi economy, a program supported by the Stand-By loan SBA aims to address the urgent needs of the payments budget and adapt spending to the level of low world oil prices, and to ensure the survival of the debt level can afford it, the program also includes measures to protect the poor and strengthening public financial management, and enhance the stability of the financial sector, and reduce corruption, Iraq will need the support of the international community to implement these policies.
The International Monetary Fund today completed the first and second control program revision Fund experts SMP with Iraq, which was approved by the Director of Administration in the January 12, 2016.
In the wake of the signing of the Board of Directors, he issued a Deputy Director, who serves as Chairman of the Board, Mr. Min Zhu Min Zhu following statement:
(The Iraqi economy has been severely affected by the Sdmtin surfaced in the wake of the sharp drop Daesh in world oil prices attacks), then he added: (The policies implemented by the authorities to deal with those suitable impact at, in the financial field authorities carried out a fair amount of adjustment policies financial mostly came through the reduction of non-effective capital spending while maintaining social spending and funding policies, and in the inner area authorities maintained a peg to the US dollar, which is the President of the economy LED).
He continued by saying: The fiscal adjustment envisaged for the years 2016 to 2019 is suitable to relieve the pressure caused by lower oil revenues, as well as higher spending on humanitarian and security affairs, but the fiscal adjustment structure must be improved over time, in order to make room for an increase in investment spending but about a more effective, that the reform of public financial management system is necessary; in order to improve fiscal discipline, as well as improve the quality of spending, the implementation of the sharing of the budget with the KRG agreement puts both the federal government (federal) and the government of the region in a better position to respond to attacks Daesh The oil price shock.