IMF-Iraq Progress Towards Second Loan Tranche

Iraq is on track to receive the second tranche of its $5.34bn standby arrangement (SBA) with the IMF by the end of the year. They reached an agreement on the second review of the SBA (approved July 2016) which could be finalized in August, opening the way for the disbursement of the second tranche of $800mn to Iraq. The first $600mn tranche was released in December ( MEES, 15 July 2016 ).

Following a review of the SBA in Amman, the IMF mission chief for Iraq Christian Josz said that the fund and Iraq had reached agreement on a supplementary budget for 2017, objectives of the 2018 budget and procedures to contain expenditure. The guideline for these budgets is to maintain fiscal consolidation given the continued low oil prices, while protecting social spending. (CONTINUED - 278 WORDS)