Cash-Strapped Iraq Turns To IMF

Iraq this week agreed to implement IMF-instigated reforms as a prelude to a possible financing deal. The ‘Staff-Monitored Program’ (SMP), aims to help Baghdad “implement a fiscal consolidation that will contain public expenditure in line with available revenue and financing, aim to reduce the non-oil primary deficit by 4% of non-oil GDP between 2014 and 2016,” IMF mission chief Christian Josz says.

The SMP includes measures to strengthen public financial management while countering money laundering and the financing of terrorism, as well as financial sector stability, Mr Josz says. The SMP will be presented to the IMF management for consideration by the beginning of 2016. If implemented, these measures could help to facilitate the extension of an IMF loan to Iraq, which is struggling to stabilize its public finances with the slump in oil prices.


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