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03-18-2011, 01:24 PM
IMF Executive Board Completes Second Review Under Stand-By Arrangement with Iraq, Grants Waivers and Approves US$471.1 Million Disbursement

Press Release No. 11/90
March 18, 2011 The Executive Board of the International Monetary Fund (IMF) today completed the second review of Iraq’s economic performance under a program supported by a Stand-By Arrangement (SBA).

Completion of the second review makes an additional SDR 297.1 million (about US$471.1 million) available for disbursement, bringing the total resources currently purchased by Iraq under the SBA to SDR 1.069 billion (about US$1.7 billion).

The Executive Board also approved a waiver of applicability of the end-December 2010 performance criteria on the central government fiscal deficit and on the central government spending bill, for which data is not yet available.

The Executive Board furthermore approved an extension of the SBA by five months to July 2012, and a rephasing of access under the SBA to match disbursements with Iraq’s balance of payments financing needs.

The SBA was approved on February 24, 2010 (see Press Release No. 10/60 (http://www.imf.org/external/np/sec/pr/2010/pr1060.htm)) for SDR 2.38 billion (about US$3.77 billion).

The SBA supported program aims to ensure macroeconomic stability and provide a framework for advancing structural reforms in Iraq.

Following the Executive Board’s discussion on Iraq, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, stated:
“Iraq has maintained macroeconomic stability under difficult external and internal circumstances, while making efforts to rebuild key economic institutions.

Inflation has remained subdued, and the exchange rate has remained stable.

The 2011 budget aims to accelerate investment in public services and infrastructure, and accommodates higher social safety net provisions to support those in need.

Iraq’s rehabilitation needs remain large and the higher investment spending is essential to help create a vibrant private sector that provides employment opportunities for Iraq’s large labor force, thus helping to reduce poverty.

At the same time, a strong emphasis on ensuring the quality of public spending will be important.

“Decisive efforts to rebuild key economic institutions and improve governance will be critical for private sector development.

The formation of the new government and the expected increase in oil production in the coming years offer an opportunity to do so while maintaining macroeconomic stability.

Further strengthening public financial management encompasses the introduction of an automated financial management and information system and improvements in cash management which would eventually culminate in the establishment of a single treasury account.

Establishing a framework for oil revenues to succeed the Development Fund for Iraq should help ensure continued accountability and transparency.

In the financial sector, moving ahead with the financial and operational restructuring of the two largest state-owned banks and enhancing the central bank’s supervision capacity will contribute to creating a financial sector that can provide essential services to the private sector.

“Iraq continues to make progress to conclude debt agreements and resolve outstanding claims under terms comparable to the 2004 Paris Club Agreement.”

03-18-2011, 01:40 PM
Good article jonmac! I also found this related article to confirm: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103181416dowjonesdjonline000 479&title=imf-approves-472-million-in-funding-for-iraq

03-18-2011, 01:50 PM
The last sentance on the nasdaq article says it all. Thx Neo!:cool:

03-18-2011, 02:23 PM
jonmac I'm not picking on ya but you need to include the link to the article above. Please edit and re-post. Also I have the same article from the IMF site if that helps: http://www.imf.org/external/np/sec/pr/2011/pr1190.htm

Thanks again jonmac and dont worry we all have done it lol

03-18-2011, 03:27 PM
Thanks to all who worked on putting the information in this post in 'good working order'
This is very encouraging news!

03-18-2011, 04:06 PM
Great stuff!! Anyone else see the typo, that said Iran instead of Iraq.. thought I typed the article for a minute!! LOL

03-18-2011, 04:12 PM
Good eye on Iran GOP! This is my favorite article of the day it speaks volumes if you know what I mean

03-18-2011, 04:29 PM
They deleted that article from Nasdaq, What did the last sentence in that article say, Neo? or anyone else that got to read it before it was yanked.

03-18-2011, 04:33 PM
I wonder why that article was deleted from Nasdaq?

03-18-2011, 04:34 PM
what did it say,the art. has been deleted

03-18-2011, 05:23 PM
They deleted that article from Nasdaq, What did the last sentence in that article say, Neo? or anyone else that got to read it before it was yanked.

Best as I can recall, it said and I'm paraphrasing - Iraq is making good strides but needs to build infrastructure in their banking system.

03-18-2011, 06:19 PM
The entire article - corrected - is printed below. The second line gives the reason for pulling the first article.
CORRECT: IMF Approves $471 Million In Funding For Iraq
("IMF Approves Funding For Iraq," at 1401 EDT and updated at 1511 EDT, misstated the amount of IMF funding in the headlines. The correct version follows:)
IMF Approves $471 Million In Funding For Iraq
By Ian Talley
WASHINGTON -(Dow Jones)- The International Monetary Fund (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103181704dowjonesdjonline000 526&title=correct-imf-approves-471-million-in-funding-for-iraq) Friday approved a $ 471 million disbursement for Iraq after a second review of the country's loan agreement with the fund.
The funding--which brings total cash transfers approved for Iraq to around $ 1.7 billion--comes after the IMF gave the war-torn country a waiver for some of its performance criteria on the government's fiscal deficit and spending, saying the data weren't yet available. The conditional funding request made by Baghdad is for around $3.8 billion and is designed ensure general economic (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103181704dowjonesdjonline000 526&title=correct-imf-approves-471-million-in-funding-for-iraq) stability and to advance needed structural and institutional reforms.
Naoyuki Shinohara, the IMF's second deputy managing director, said Iraq's rehabilitation needs "remain large and the higher investment spending is essential to help create a vibrant private sector that provides employment opportunities for Iran's large labor force, thus helping to reduce poverty." At the same time, he said, the government needs to ensure a high quality of spending.
The fund also highlighted the need for Iraq to build a better system of financial (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103181704dowjonesdjonline000 526&title=correct-imf-approves-471-million-in-funding-for-iraq) management, particularly given the expected growth in petroleum revenue for the oil and gas-rich nation. "Establishing a framework for oil revenues to succeed the Development Fund for Iraq should help ensure continued accountability and transparency," and the government should ultimately aim to develop a single treasury account, Shinohara said.
Oil and natural-gas resources have proven both a tremendous opportunity and source of conflict for Iraq, as the country is estimated to have some of the largest crude-oil reserves in the world. One of the biggest political obstacles for the country has been deciding how to divide and distribute the vast petroleum wealth among the regions, particularly since the Kurdish, Shiite and Sunni factions have each argued for a greater representation.
Last year, the IMF said Iraq's financing (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103181704dowjonesdjonline000 526&title=correct-imf-approves-471-million-in-funding-for-iraq) needs through the end of 2011 would total around $5 billion, depending on the price of oil, to help fund a major budget deficit. But as oil prices have turned out higher than originally expected, it has cut Iraq's financing needs, and will likely push up growth expectations.
In the IMF's latest outlook, Iraq's economy is expected to grow 11.5% this year, compared to 2.6% last year. Its budget deficit is seen falling to 8.6% this year from around 14% in 2010, but unemployment is still widespread, the fund said.
-By Ian Talley, Dow Jones Newswires, 202-862-9285, ian.talley@dowjones.com
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103181704dowjonesdjonline000 526&title=correct-imf-approves-471-million-in-funding-for-iraq