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Standby Agreement

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1 Standby Agreement on Sat Mar 09, 2013 4:04 pm


3-8-2013 Newshound Guru XXXXX i was going to post something about the IMF and Iraq...here it goes: "The Iraq IMF Standby Arrangement, Second Review ended February 23, 2013, but the extension, which had been requested by the Iraqi authorities, provided them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension did, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime." so they are on the combined 3rd and 4th Reviews if i'm reading it right, are currently in the 3rd and 4th... it was only a transition on February 23, 2013, not an end but the END of the Second Review...many thought it was a final ending.

2 Re: Standby Agreement on Sat Mar 09, 2013 4:14 pm


This is unfortunately an example of how misinformation gets circulated. When a country obtains a Standby Agreement to borrow money from the IMF, it must stipulate the projects the money will be used for. In this case Iraq was to use the loan for 1) Modernizing Iraq’s public financial system, 2) Developing the financial sector and 3) Strengthening governance over the oil sector. Reviews with specific time frames are established in order for the IMF to monitor the progress of the projects and determine if the country is meeting the established goals for the loan. Think of the review as a report card. Iraq could not complete the 3rd & 4th review because they had not met the goals established in the original contract. The extension provided additional time. Iraq was also granted permission to combine the two missed reports.

This SBA absolutely expired on February 23, 2013. There is no transition. If there were going to be an another extension, the IMF would have granted it prior to the expiration. They had already granted two (2) extensions on this SBA. If Iraq did not borrow the balance of the loan prior to February 23, 2013 then they lost access to the money. This could be due to the fact they did not accomplish what was required under the terms of the loan and the IMF denied allowing the balance of the loan to be activated. Another possibility is that Iraq did not need to borrow the rest of the loan. Iraq might have borrowed the balance and the information will not be made public until the release of the report, though I find this highly unlikely. In any case, this SBA is "dead in the water." Any further loans would have to be set up under a new SBA.

The only outstanding issue is the publication of the review report once it has been finalized and released to the public. The missing report should provide valuable information regarding the “exchange regime”. Of all the reports available on Iraq and all the news articles, I consider this report to be the most critical and informative regarding the status of the dinar. Iraq has stated in previous review reports their currency policy and to date, that is exactly what they have done. My personal opinion is the report has been completed for some time.

3 Re: Standby Agreement on Mon Mar 11, 2013 8:18 am


THANK YOU MOM!!! A voice of FACT!!! I've had a few emails on this, I try and explain that "this guru" is wrong but I will resent a reply with your post!!! Thanks

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