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06-22-2010, 02:16 PM
Emergency Support Agreement (SBA) third with the International Monetary Fund for two years 20,102,011

(Voice of Iraq) - 22/06/2010

(Voice of Iraq) - the name of God the Merciful
Relations Service and Information
Ministry of Finance

Baghdad

06/22/2010

After he finished in Iraq December / 2008 obligations contained in the agreement support the emergency (SBA) the second was signed with the International Monetary Fund in December / 2007, the Fund issued a book to the Paris Club had told him which that Iraq has fulfilled its obligations and requested from the club, the launch rate the recent and most (20 %) of the debt reduction granted by the club to Iraq and the amount of

(80% ) under the agreement signed with the club in November 2004 , the Iraqi government representative of the Ministry of Finance and Central Bank of Iraq continued relationship with the IMF in order to benefit from the expertise of the experts of the Fund in two policies of fiscal and monetary and offer of technical assistance And training courses for the development of Iraqi personnel and capacity-building in order to complete economic and structural reforms begun by the Iraqi government carried out since 2004.

Technical consultations were held during the period 28/07/2009 25 with experts from the Fund by the delegation of the Ministry of Finance and Central Bank of Iraq , headed by Mr. Aziz Jaafar Special Adviser to the Minister of Finance and Dr. Counsel for the appearance of Mohammed in the Iraqi Central Bank in addition to a number of officials from the Ministry and the Central Bank of Iraq and a number of ministries was attended by Dr. . Shabibi Iraqi Central Bank Governor aside " from these consultations.

During the period leading up to consultations with the International Monetary Fund and the Ministry of Finance noted the effects of global financial crisis and particularly the shrinking demand for crude oil in global markets which has led to lower prices of

(147) dollars per barrel to less than (30) dollars and the effect on oil revenues for Iraq, which constitute the resource President and substantial financing of the budget, which led to the use of the Ministry of Finance surpluses accumulated in the calculation of the development of Iraq (DFI) in bank accounts from the previous periods to fill the shortage In funding , so I realized the ministry that would remain in these accounts at the end of 2009 of oil resources for the year 2010, with low rates of Iraqi crude oil export will not be sufficient to finance the total expected expenditures for the year 2010 for this and to implement prudent fiscal policy asked the Minister of Finance from the IMF The amount of international lending to Iraq (6) billion dollars to support the financing of the budget in 2010 and subsequent years.

We have responded to the Fund and is the first to give Iraq a loan up to 300 % of Iraq's share of special drawing rights (SDR) for Iraq or about ( 0.5 ) billion dollars to be a program between Iraq and the Fund agreed.

Therefore, during the technical consultations was agreed to hold an emergency support agreement (SBA) and the third term of the agreement with him over the two years 2010 and 2011.

For the completion of consultations were held round of negotiations with the experts of the Fund during the period of the meetings of the IMF and the World Bank in Istanbul in October / 2009 attended the negotiations and the delegation of the Ministry of Finance and Central Bank of Iraq , attended by ministers of finance , oil and the Governor of Central Bank of Iraq during the period of negotiations Reached to the financial gap during the years 2010 and 2011 limits the amount of ( 7.5 ) billion dollars could be met from the amounts expected to remain in the calculation of the development of Iraq (DFI) , and funding may be provided by the International Monetary Fund loan to support the budget and agreed that the limits (200%) of the allocation of Iraq's special drawing rights (SDR) , which amounts to about 6.3 billion dollars over two years 2010 and 2011 in addition to a loan for budgetary support from the World Bank (500 ) million dollars in addition to transferring a share of Iraq (SDR ) to the dollar , amounting to about ( 8.1 ) billion dollars and what can be provided from the issuance of treasury internal remittances to finance this deficit.

It was agreed during negotiations with the IMF experts on all the details of the emergency support agreement (SBR) , which includes some of the requirements , which have already been discussed and around and , all in the interests of Iraq as it relates to structural reforms and providing data and the reform of fiscal and monetary management .

In light of the negotiations that took place in Istanbul was a book

Signed by the Minister of Finance and the Governor of Central Bank of Iraq include the reality of the Iraqi economy and structural reforms and economic as well as the reform of financial management and cash management .

In February 2010 provided IMF staff report to the Executive Board of the International Monetary Fund recommended by the ratification of the agreement support (SBA) with Iraq, combined with a loan to support the budget amount ( 6.3 ) billion dollars over two years 2010 and 2011 period of the agreement to continue Iraq's acquisition of the loan or the surviving portion of it if you did not exceed the average price of Iraqi crude oil exporter to global markets 73 dollars per barrel ( note " that the approved budget is 5.62 dollars per barrel ), because this difference could cover the financial gap , has added HE Minister of Finance is to ensure that Iraq's acquisition of the loan stipulated that not less than the rate of export in 2010 on the number of barrels approved budget , namely, ( 100.2 ) million barrels a day. "

Has approved the Executive Board of the International Monetary Fund agreed on 24/2/2010 Iraq told him.

Iraq received the first batch of the loan up to 440 million dollars or the equivalent of 1 , 297 million (SDR) and the remaining will get it later.

It is anticipated that the first revision of the agreement support the emergency ((SBA during the second week of July 2010, after the success of this review can get Iraq to the second installment amounting to (695) million or equivalent to ( 63 475 ) million (SDR).

Amounts are converted for the Ministry of Finance through the Central Bank of Iraq , as agreed between the Ministry of Finance and Central Bank of Iraq under a memorandum of understanding under which the receipt of the Central Bank of the dollar amount and record the amount credited to the bank and the Ministry of Finance in Iraqi dinars.

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