Global Arab Network | IMF Supports Iraq with $ 471.1 Million

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IMF Supports Iraq with $ 471.1 Million

Global Arab Network - - Talal Abdullah

Sunday, 20 March 2011 00:42

The International Monetary Fund (IMF) has approved the disbursement of $ 471.1 Million under the Stand-By Arrangement (SBA) programme with Iraq following the completion of the second review.

The IMF Executive Board's second review brings the total resources currently purchased by Iraq under the SBA to around $ 1.7 Billion.

The 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.

The board 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 IMF's Deputy Managing Director and Acting Chair Naoyuki Shinohara said, "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, Shinohara said in his remarks.

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 labour force, thus helping to reduce poverty. At the same time, a strong emphasis on ensuring the quality of public spending will be important, he added.

Global Arab Network

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Last Updated on Sunday, 20 March 2011 00:46

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