news on talk with IMF

News
Monday, 22 Jun 2009
IMF and Iraq in talks on USD 5.5 billion program
Monday, 22 Jun 2009
Reuters quoted spokeswoman IMF said that Iraq has expressed interest in a USD 5.5 billion International Monetary Fund loan program over 18 months.

The spokeswoman said that the issue was raised during economic consultations between Iraqi authorities and IMF staff in Amman, Jordan, last weekend.

An Iraqi official said that the standby deal would be for 5 years.

The spokeswoman said that "Further discussions will be held over the coming months to work out the details of a new program and determine the financing that could be provided."

She said that "The actual access will depend on Iraq's needs and the strength of a new program, with a final decision resting with the executive board."

It would be the largest IMF program agreed with the new Iraqi administration which has had 2 previous arrangements of less than USD 1 billion each.

Discussions on an expanded program come amid signs late last year that economic activity is picking up in Iraq as security conditions improve but uncertainty over the upcoming reduction in US troops numbers weighs on investors.

Iraq relies on oil exports for more than 95% of state revenues and desperately needs funds to rebuild the country after years of sectarian conflict and insurgency triggered by the 2003 US invasion.

Mr Mudher Kasim senior Iraqi central bank advisor said that the IMF had presented it proposed conditions for the loan during the talks in Amman, calling for further fiscal reforms, restructuring of state banks and banking sector reform.

http://steelguru.com/news/index/2009...n_program.html

Thanks Mocha

This answers my question of why there has been nothing posted on the IMF website if this loan was a done deal as being claimed by Iraq sources.

Thnx as always Mocha!

heres a little snippit taken from another article posted re: debt issue:

The «agreed to hold technical meeting and technicians in July (July), and the convening of another meeting on the sidelines of the World Bank in Istanbul, and the draft agreement and then transferred to the Iraqi government and parliament for approval».
». He continued to say that «most of the contents of the agreement is that there is quota (quota) Bbleon Iraq's estimated 800 million dollars and the International Monetary Fund could take advantage of them when the budget deficit in an interest rate of one percent». يها». He said «this quota will be ready, and Iraq can benefit from them when he felt in need».

و. Iraq and the agreement with the Fund on a loan of 5.5 billion dollars, he explained that Zubeidi «did not specify the amount yet, but Iraq if agreement was signed for one year will be about five billion dollars is not a loan but Kota».

وأكد». He stressed that «Iraq does not need it or to any loan now because we have good financial and stable, especially for the current year, but we are afraid of the continuing financial crisis and its aftermath».

. He pointed out that «the price of oil rose and went to 65 dollars and has increased Iraq's production, at about one million and 950 thousand barrels per day. وإ». And if so, would not need a loan or because Mozanp quota set in 2009 on the basis that the price of 50 dollars a barrel and an export rate of two million barrels ».

وك». He added that «the Iraqi Ministry of Finance is considering a supplementary budget in writing and submitted to the Council of Ministers and then to the parliament will begin by making sure that production will reach two million barrels and that prices will rise above the current price».



SOOOOOOOOOOOOOOO.....it appears to me, just as in the past, Iraq was approved for the loan but it doesnt look like they will be taking it at least this year.

TY Mocha!