TLM724 CHAT NOTES

by **Ponee** Thu Sep 29, 2016 11:24 am

IMF: Zebari was the hero of the financial loan agreement
- SEPTEMBER 28, 2016

http://www.azzaman.com/?p=178922

"the dismissal of Finance Minister Hoshyar Zebari said last week in the latest tremor disorders increased policy in Baghdad"

sacking Zebari shook things up but did not topple any plans, just a slight setback

"Zebari denied the charges and described the action as «vindictive and politically motivated» accusing former Prime Minister Nuri al - Maliki of orchestrating his dismissal in a bid to topple the government of Prime Minister Haider al - Abadi"

I wouldn't put it past Maliki to be behind this ! Just this morning there was an article that said Maliki called for Barzani's arrest. The withdraw of confidence from Zebari was an orchestrated plan started by Maliki while PM Abadi was in the United States ! Maliki has had it in for Abadi since day one. When the mouse is away the rat will play ....

"But in the absence Zebari, who mastered English and is appreciated in the world capitals of Baghdad lose closest to the details of the deal person. He described Christian Gooch, Director of the IMF mission in Iraq, Zebari as «hero» of the loan agreement. He told Reuters by telephone «was a great engine for reform and now we do not know who will replace him.» He said that negotiations will continue with a successor as soon as his appointment Zebari said, adding that «the IMF programs with countries not individuals.»"

Zebari was the one handling the deal with the IMF and was obviously respected. The IMF clearly states that the loans will NOT stop just because of the shake up in the GOI. Hell one of the requirements of the IMF is to eliminate corruption so these actions won't be held against Iraq. The IMF will wait for the new Minister of Finance to continue the negotiations for future loan installments.

"The initial segment worth $ 640 million had been disbursed in July, but the next tranche equal to the first stop may take place by mid-November, but the review could be delayed until the end of Alaracmn order of conditions."

The next payment is scheduled for mid November but Iraq must first meet their obligations (conditions) specifically they must adjust the budget for 2017 and continue with reforms. They are working hard on reducing the budget.

"Gooch said that the review of the draft budget submitted by Iraq to the IMF last month, is a prerequisite. He said «It's expensive too much not in line with the obligations set forth in the loan arrangement .. should agree on 2017 budget"

"Gooch said he expects an update of Iraqis during the regular meeting of the IMF in Washington early next month. The government said Tuesday it would cut spending in 2017 to 90.22 trillion Iraqi dinars (77.51 billion dollars)."

Annual Meetings 2016
International Monetary Fund
World Bank Group
Washington, DC
October 7-9, 2016
https://www.imf.org/external/am/2016/index.htm

"A Western diplomat in Baghdad says is closely following the Iraqi economic affairs that the IMF meeting will be «articulated point».
The «Can they rearrange their situation and get things done by that time? If I had to put a bet I would have said that he will at least postpone, but probably not more than that. »"

In his opinion there could be a minimal delay which is always possible with Iraq.

"Baghdad also says it will strengthen its finances by selling bonds fully guaranteed one billion dollars from the United States and international bonds of one billion dollars in the last quarter of 2016.These plans may be threatened now."

Love some international bonds for sure. As he says further down in this article about Zebari "leave everything is hanging in the air". With no official MOF these bonds cannot move forward so it's in everyone's best interest to get a new, permanent minister in there ASAP.

"But potential investors are still optimistic. He was a great economist Hake emerging market debt has Naobergr Berman in The Hague that Iraq is in a position to issue bonds even if delayed Agsndouk Monetary reform because the structure is already producing oil enhances this year is based."

potential investors are still optimistic, sweet ! There is no stopping Iraq, slow downs here and there sure but no stopping, as BondLady always pointed out Iraq has it all, all the wealth from so many sources and we will reap our just rewards !