São Paulo – This Friday (3rd), the International Monetary Fund (IMF) announced that it has extended the deadline for a loan made to Iraq. The stand-by arrangement (SBA) aims to help the country finance its balance of payments and amounts to US$ 3.58 billion, of which US$ 1.96 billion have already been made available.
The original deadline was July 23rd, however the IMF has postponed it to February 23rd, 2013, by request of the Iraqi government, to give the country time to implement the necessary measures.
“The extension will provide time for discussions on fiscal policies for the remainder of 2012 and on measure to improve the functioning of the exchange regime,” according to a IMF press statement.
The agreement went into force on February 24th, 2010 and the IMF has carried out two evaluations on its implementation. The initial duration was two years, but the Fund had already extended it for an additional five months. After the decision made this Friday, the total duration is now three years.
*Translated by Gabriel Pomerancblum
