Baghdad – Journal News
The Prime Minister’s Advisor Dr. Mohammed Saleh said that the recent consultations with the International Monetary Fund ended with great success and represented an important step forward for the meeting of the Executive Board of the Fund on July 14 to approve the launch of the second review of the Preparedness Agreement (SBA).
The World Bank has promised to continue its support for various financing programs to promote infrastructure and reconstruction within the program of loans or financing the so-called development program, whether from the World Bank itself or the contributions of donor countries, especially the Group of Seven industrialized nations.
Saleh said in an interview with the Journal News that “the International Monetary Fund has some details of the calculation of the cost of building the model in the stability of Iraq’s macroeconomic over the next period, he wants to complete this information, especially in the subject of electricity sector.”
Saleh pointed out that “the SBA loans are spread over a period of 36 months at about $ 5.3 billion, and a similar amount for the same period of World Bank loans and concessional parallel financing for the G7.”
Saleh added that “sources of external funding to fill the deficit gap in the budget of 2017, $ 3 billion, distributed between 50% of the contribution of the Fund within the total loan of $ 5.3 billion, and the second half contribution of the World Bank and some countries of the G7, which represents parallel funding For the World Bank loan, all of which will be withdrawn in the second half of 2017. “
Saleh pointed out that “the recent consultations in Washington, with the International Monetary Fund and the World Bank, went positively despite some technical details, and it is hoped that Iraq will receive grants and soft loans of more than $ 3 billion during the year 2017 to support the budget Reconstruction and investment projects in infrastructure. “
“The important thing in terms of the credit program with the IMF is the first ability to continue and develop the energy sector in complex market conditions suffered severe crises and the other is the wise financial management that enabled the country to overcome its financial plight due to the deterioration of oil revenues as well as large expenditures In the budget, which contributed to the crushing of terrorism and the liberation of man and land and finally the success of the price system and the stability of the general level of prices and the ability to balance that conservation by the level of security of Iraq’s international reserves.
The delegation concluded its discussions with the International Monetary Fund and the World Bank in the spring meetings in Washington. The advisor of the Prime Minister Dr. Mazhar Mohammed Saleh participated in the delegation headed by the Minister of Finance and Dr. Abdul Razzaq Al-Issa and attended by a number of officials of the Ministries of Finance and Electricity. Mostafa.
The Minister of Finance and Dr. Abdul Razzaq Al-Issa, the World Bank is ready to allocate nine million dollars to support investment and development in the field of gas accompaniment.
Al-Issa said during the spring meetings of the International Monetary Fund and the World Bank in Washington that the Iraqi government will intensify the work of the joint committee between the ministries of finance, electricity and oil to activate the investment of gas associated with and benefit from the operation of electric power projects, noting the readiness of the World Bank to provide a grant of nine million dollars to support projects and studies For the associated gas investment in Iraq.
The World Bank’s representatives pointed out that economic reforms were a key requirement for an integrated system to manage the state’s fiscal process at the federal and local levels, the Finance Ministry said in a statement.
She added that the participants pointed out that the proportion of the task achieved by Iraqi institutions in this area, gives the appropriate room for the World Bank to support the budget and reconstruction projects within the time limits to achieve its objectives required.
The Bank welcomed the steps taken by the Iraqi Government in the field of resource management and the development of reform visions in coordination with international financial organizations and institutions.
The World Bank stressed that Iraq is the most important countries in the region and that his support will continue to overcome the crisis.
During a meeting with the Iraqi delegation, World Bank Vice President for Middle East and North Africa Hafez Ghanem said the World Bank was committed to Iraq to provide the financial requirements for reconstruction in liberated areas.
The World Bank team said that the reconstruction of these areas and the acceleration of the implementation steps will be established for continuous support in the light of what is needed and what the Iraqi government needs.