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International Monetary Fund: Corona and the sharp drop in oil prices create grave risks that threaten Iraq's economy

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Post by RamblerNash Thu Dec 24, 2020 3:48 pm

International Monetary Fund: Corona and the sharp drop in oil prices create grave risks that threaten Iraq's economy 878274-6c2951c6-36b3-4269-b5af-ec5e8008826c
Thursday 24, December 2020 23:39
 
Baghdad ( NINA ) - Tukir Mirzoyev, head of the IMF mission on Iraq, said today, Thursday, that the Covid-19 pandemic and the sharp decline in oil prices and production have exacerbated economic vulnerabilities in Iraq.

In a statement, he said: “Given the severe lack of public finance and the challenges facing the payment of external and domestic payment obligations, including wages and pensions, a critical recalibration of economic policies is required in order to maintain the stability of the economy.

Mirzoyev added, we welcome the approval of the Iraqi Council of Ministers of the draft General Budget Law for the fiscal year 2021, which, according to our understanding, envisages the implementation of important financial reforms.

He continued: "Despite the difficulty of these reforms, as well as reducing the currency exchange rate , which recently announced the price, it is very steps important to help reduce the large imbalances in the balance of external payments and public finance and ensure economic stability.

He noted that the authorities have drawn up plans for a substantial increase in Targeted cash transfers to the poor and boosting health-related spending, which are necessary plans to mitigate the impact of the Covid-19 crisis on the most vulnerable, Mirzoyev stressed that the International Monetary Fund is ready to support the authorities ’reform efforts at this challenging juncture.

https://ninanews.com/Website/News/Details?key=878274

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