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IMF may lend Iraq $ 800 million
5/5/15
Twilight News / senior official at the International Monetary Fund said that Iraq's request for financial assistance and it may be agreed to loan $ 800 million in a matter of weeks.
Financial conditions of Iraq and strongly worsened by the collapse of oil prices since last year as well as the organization of the Islamic state attacks.
The government projected a deficit of about $ 25 billion this year in budget sizes up to about $ 100 billion.
International Monetary Fund loan at ease pressure may contribute and help the government measure funding from other sources by enhancing investor confidence.
Baghdad has said it intends to issue bonds at five billion dollars and is the first international version nine years ago.
Said Masood Ahmed Director of the Middle East and Central Asia Department at the International Monetary Fund "will work committees in this regard in the coming weeks. We hope that we reach an agreement relatively soon."
Ahmed said that is likely to provide the loan through rapid funding mechanism would be "relatively small .. about $ 800 million."
And it established the IMF rapid funding to provide urgent financial assistance and advice on the economic policies of the Member States that need circumscription urgent aid to adjust the balance of payments mechanism. According to the website of the International Monetary Fund repay the loan provided by the rapid funding over a period of between 40 to 60 months mechanism.
The loan has been paving the way for Iraq to get larger loans from the Fund pack when needed but such loans may require greater commitments on economic policies adopted.
Last week, Finance Minister Hoshyar Zebari said Baghdad will seek to obtain a sovereign credit rating to facilitate the issuance of bonds. The government is about application procedures or working on the preparation procedures include asking local currency bonds to banks and the imposition of taxes on some consumer goods or cut public sector wages.
Ahmed added that Iraq has begun to withdraw from its reserves and added that it is likely to grow slightly economy after a contraction of 2.4 percent recorded in 2014.
"I realize the Minister of Finance and the Prime Minister completely that there is a problem and are committed to finding a solution within the constraints they face
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