IMF approves USD 1.24 bln in support for Iraq

WASHINGTON, July 30 (KUNA) -- The Executive Board of the International Monetary Fund (IMF) approved USD 1.24 billion for Iraq on Thursday to help the country address budget needs related to the Islamic State in Iraq and the Levant (ISIL) insurgency and a decline in oil prices.
"The twin shocks faced by Iraq from the ISIL insurgency and the drop in global oil prices have severely widened the government deficit and caused a decline in international reserves," said IMF Deputy Managing Director Mitsuhiro Furusawa in an IMF statement.
"The large financing gap calls for the rigorous implementation of the authorities' policies, but also additional fiscal adjustment measures and identification of domestic and internal financing," he continued.
"In this context, it will be important to implement the new electricity tariff schedule as soon as possible, or adopt compensatory measures." "Looking ahead, the authorities should lay the ground for medium-term structural reforms that would better support macroeconomic policy management and boost the economy's resilience to shocks," Furusawa asserted. (end) ak.ibi