IMF grants Iraq crucial loan

[cal04]

Iraq has won a crucial loan accord with the International Monetary Fund (IMF) and a $US14 billion ($A19.2 billion) debt swap with private lenders. The $US685 million ($A939 million) IMF stand-by credit arrangement is the fund's first ever with Iraq and is designed to support the nation's economic program over the next 15 months. "The Iraqi authorities were successful in promoting macroeconomic stability in 2005, despite the extremely difficult security environment," IMF deputy managing director Takatoshi Kato said.

An insurgency in parts of the country and almost daily suicide bombings in and around Baghdad, the capital, has hindered economic rebuilding since the US invasion in 2003. But the US says progress is being made. The IMF agreement is crucial for Iraq's ability to borrow money overseas and necessary to trigger a full debt reduction deal approved by the Paris Club of creditors a year ago. "I applaud the IMF board's approval of a stand-by credit arrangement with Iraq today," US Treasury secretary John Snow said. "This arrangement will underpin economic stability and help lay the foundation for an open and prosperous economy in Iraq."

Security
An IMF stamp of approval is not only necessary to secure the Paris Club's 80 pe recent reduction of some of Iraq's foreign debt, but will also be an important vote of confidence as Iraq prepares to seek additional aid from donors.
Broader international support for the economic reconstruction of Iraq is a key part of President George W Bush's strategy to reduce the country's reliance on American support and begin withdrawing US troops. The US is eager to capitalise on Iraq's largely peaceful elections on December 15, which elected the country's first full-time government since the fall of Saddam Hussein.

US Defence Secretary Donald Rumsfeld said earlier that around 7,000 troops would return home early next year.
The IMF voiced guarded optimism for the future but made plain that delivering security was essential. "The medium-term outlook for Iraq is favourable, but subject to many risks," Mr Kato said. "A strengthening of the security situation will help the authorities to implement the program. "Moreover, Iraq remains vulnerable to shocks, particularly those relating to oil."

http://www.abc.net.au/news/newsitems/200512/s1537535.htm

[DemInDistress]

1. where the hell is the Iraqi Oil Monies? nt

[Skink]

2. Now if we could only find the money we set aside for them.

[pinto]

3. Notice not one Iraqi official, not one, is quoted in this story?

[Voltaire99]

4. Iraq as a plaything of empire.

First they sanction and bomb you. Destroy your economy, wreck your infrastructure. Then they invade you: obliterate your society and let halfwit killers roam your streets. Then they put your institutions in the hands of rubes from Texas.

Finally they loan you economic "aid."

Congratulations! Now you're free!