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International Monetary Fund welcomes the government's economic and financial reforms
Economy News - Baghdad
The head of the International Monetary Fund’s mission in Iraq, Toker Mirzoyev, welcomed the cabinet’s approval of the draft general budget bill for the fiscal year 2021, while announcing the fund’s readiness to support reform efforts .
Mirzoyev said in a statement, “The Corona pandemic and the sharp decline in oil prices and production have exacerbated economic vulnerabilities in Iraq, noting that“ in view of the severe shortfall in public finance and the challenges facing the payment of external and domestic payment obligations, including wages and pensions, A critical re-calibration of economic policies is required in order to maintain the stability of the economy . "
He continued: “We welcome the approval of the Iraqi Council of Ministers on the draft general budget bill for the fiscal year 2021, which, according to our understanding, envisages implementing important financial reforms,” noting that “despite the difficulty of these reforms, in addition to the reduction of the currency exchange rate that was announced recently, they constitute steps Of critical importance to help reduce major imbalances in the external balance of payments and public finances and ensure economic stability .
And that "the Iraqi government has developed plans to significantly increase cash transfers directed to the poor and to enhance health-related spending, which are necessary plans to mitigate the impact of the Covid-19 crisis on the most vulnerable groups ."
He pointed out that the plan drawn up for the short term should be followed by more subsequent reforms, which include deeper structural reforms, in order to strengthen the resilience of the economy, expand the fiscal space to include critical reconstruction and social spending, and lay the foundation for higher growth rich in job opportunities and more inclusion. For everyone in the medium term . "
He declared, "The International Monetary Fund is ready to support the reform efforts of the Iraqi government at this challenging juncture."
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