Thursday, April 05, 2007
Iraq negotiates $500 million loan from World Bank
International, Economy
(AFP) - Iraq is negotiating a 500-million-dollar loan from the World Bank to help reconstruct its war-torn economy, the prime minister's office said on Thursday. A statement from Nuri al-Maliki's office said the cabinet had authorised Finance Minister Bayan Jabr Solagh to sign the loan agreement.
"The council of ministers decided in an extraordinary session on March 29 to authorise the finance minister to negotiate and sign a loan agreement with the World Bank worth 500 million dollars," the statement said. It provided no further details.
The World Bank has remained active in Iraq but closed its permanent office in the country after one of its employees was killed in a truck bombing at the UN complex in Baghdad in August 2003. The bank has given loans to Iraq since the 2003 US-led invasion, mainly for improving the country's dilapidated educational institutions.
"The council of ministers decided in an extraordinary session on March 29 to authorise the finance minister to negotiate and sign a loan agreement with the World Bank worth 500 million dollars," the statement said. It provided no further details.
The World Bank has remained active in Iraq but closed its permanent office in the country after one of its employees was killed in a truck bombing at the UN complex in Baghdad in August 2003. The bank has given loans to Iraq since the 2003 US-led invasion, mainly for improving the country's dilapidated educational institutions.
Labels: Finance Minister Bayan Jabr Solagh, loan, World Bank
Tuesday, April 03, 2007
Al-Maliki to visit Japan
Politics, International
(AFP) - Japan will agree to help Iraq improve crude oil output and push for reconciliation in the war-torn country when Prime Minister Nuri al-Maliki visits next week, officials said Tuesday. Maliki will pay his maiden visit to the world's second-largest economy from Sunday to Wednesday and meet with Prime Minister Shinzo Abe and Emperor Akihito, Japan's foreign ministry said.
"Iraq boasts the world's third-largest crude oil reserves. It is important for Japan to build a long-term strategic partnership with Iraq," a ministry statement said.A Japanese foreign ministry official said Abe would also "encourage the Iraqi premier, who is a Shi'a leader, to further promote national reconciliation in Iraq," the official said.
The Iraqi premier is expected to sign a $700-million loan agreement with Japan to help the war-torn country improve crude oil output and power generation, an MP close to Maliki said earlier in Baghdad. The 40-year loan, part of financial assistance to Iraq announced by Tokyo in 2003, will go to build pipelines in the southern city of Basra and improve power transmission facilities across the nation, lawmaker Sami al-Askari said.
The Iraqi premier is expected to sign a $700-million loan agreement with Japan to help the war-torn country improve crude oil output and power generation, an MP close to Maliki said earlier in Baghdad. The 40-year loan, part of financial assistance to Iraq announced by Tokyo in 2003, will go to build pipelines in the southern city of Basra and improve power transmission facilities across the nation, lawmaker Sami al-Askari said.
Japanese officials had no immediate comment on the loan agreement. Japan has offered six billion dollars in debt waivers and $1,5-billion in aid grants to Baghdad, but much of the aid is on hold due to security concerns. Japan last year withdrew its 600 ground troops from Iraq following a reconstruction mission that marked the first time since World War II that Tokyo sent troops to a country where fighting was under way. Despite their withdrawal, Japan has maintained an air force mission, which includes some 210 personnel based in Kuwait in support of US-led forces. It decided last week to extend the mission by two years.
Labels: Basra, crude oil, Emperor Akihito, Japan, loan, Nouri Al-Maliki, oil pipelines, Prime Minister Shinzo Abe
Tuesday, March 13, 2007
IMF extends $714 million loan
Finance
(Reuters) The International Monetary Fund on Tuesday extended Iraq's $714.7 million loan accord to Sept. 28 at the government's request and said the country faced an important juncture in its economic recovery amid increased violence. Iraq has treated the loan as precautionary finance and has not drawn down on it since its approval in December 2005.
"Despite very difficult political and security circumstances, the Iraqi authorities have taken important measures to keep their economic program on track," IMF Deputy managing Director Takatoshi Kato said in a statement. He commended the authorities for their management of the economy, including maintaining fiscal discipline, tightening monetary policy and raising domestic fuel prices.
But the IMF said inflation was high and the central bank may need to act to prevent it from becoming entrenched, while fiscal policy should keep current spending in check, including wages and pensions. Kato urged the government to increase its investment, especially in the oil sector, and to reduce supply constraints of fuel products. "To that end, actions are needed to facilitate the importing of fuel products by the private sector," Kato said. He said reforms needed to be broadened, including in the budget and financial management system. The fund praised restructuring efforts of Iraq's two largest banks but said more efforts were needed to overhaul the four other state-owned banks.
"Despite very difficult political and security circumstances, the Iraqi authorities have taken important measures to keep their economic program on track," IMF Deputy managing Director Takatoshi Kato said in a statement. He commended the authorities for their management of the economy, including maintaining fiscal discipline, tightening monetary policy and raising domestic fuel prices.
But the IMF said inflation was high and the central bank may need to act to prevent it from becoming entrenched, while fiscal policy should keep current spending in check, including wages and pensions. Kato urged the government to increase its investment, especially in the oil sector, and to reduce supply constraints of fuel products. "To that end, actions are needed to facilitate the importing of fuel products by the private sector," Kato said. He said reforms needed to be broadened, including in the budget and financial management system. The fund praised restructuring efforts of Iraq's two largest banks but said more efforts were needed to overhaul the four other state-owned banks.
