Eco
The financial advisor to the Prime Minister, Mudher Mohammad Saleh, confirmed today, Saturday, that Iraq has not yet submitted an official request for a loan from the International Monetary Fund, noting that Iraq maintains continuous communication with the Fund, and a government team holds annual meetings with officials there.
Saleh said, according to the official agency, that "Iraq enjoys close relations with the International Monetary Fund, and has concluded since 2003 more than five agreements, three of which are stand-by arrangements, while the other agreements relate to emergency support."
He added that "the Fund has played a major role in supporting the Iraqi economy over the past 23 years, especially since Iraq is now considered one of the largest casualties of the ongoing war in the region, taking into account that 85% of its oil exports pass through the Strait of Hormuz, which caused great damage and international concern, given that Iraq represents an important and active member in the stability of the region and world markets."
He pointed out that "there is a government Iraqi team in contact with the IMF and meets with the Fund's mission to hold consultations with officials twice a year in spring and autumn, and there is concern by the Fund about the situation in the Middle East, including the situation in Iraq."
He explained that "Iraq signed on July 7, 2016, an agreement with the IMF for a stand-by arrangement through providing a large loan, which played a major role in supporting the general budget," pointing out that "signing an agreement with the Fund is a matter decided by the Iraqi government, and this does not prevent holding consultations between the two parties, as Iraq is a member of this institution responsible for stability in the world."
He mentioned that "Iraq will borrow from the International Monetary Fund if the need arises, but there is no official request from the government so far, and the current need is represented by stopping the war in the region and halting its geopolitical impacts on oil exports."
He continued that "technical assistance is provided by the International Monetary Fund, which is currently available, unlike the issue of financing that requires the approval of a program by the Iraqi government."
He explained that "the loan itself represents a reform program to support the budget or to achieve social goals represented by supporting the health and education sectors because it is considered a human investment that must be subject to conditions determining spending trends and commitment to a reform program by agreement between the Iraqi state and the International Monetary Fund."
