São Paulo – This week, after meeting with the Iraqi prime-minister, Nuri Al-Maliki, the managing director of the International Monetary Fund (IMF), Christine Lagarde, stated that the country is on the path to growth, but needs to keep its fiscal policy under control to prevent an increase in current spending.
In an address after the meeting, Lagarde stated that the IMF’s partnership with Iraq has helped the country achieve economic stability, contributed to strengthen the dinar, lower inflation and resume growth. The IMF committed to maintaining a line of credit to ensure a budget to Iraq in case oil revenues should drop sharply.
The country’s budget in 2012 is yet to be discussed by the Council of Representatives. The government approved a budget that provides for US$ 100 billion spending and exports of 2.6 million barrels per day. “I am very encouraged by the government’s new budget proposal for 2012 that was recently submitted to the Iraqi Council of Representatives. The proposal aims to restrain the growth of current spending, thus freeing up resources for infrastructure investment and social support, while limiting the size of the budget deficit,” said Lagarde in Washington.
The line of credit the IMF has granted to the Iraqi government allows the country to go on strengthening its financial institutions, at the same time providing working conditions to the private sector and creating jobs. Lagarde claimed that the Iraqi economic growth must be coupled with social equality.
“We remain committed to helping Iraq in its efforts to foster sustained and inclusive economic growth, generate viable employment opportunities, and improve living standards for all Iraqis,” she said. In January, a mission of IMF economists should visit the country to discuss results and challenges concerning the economic policy.
*Translated by Gabriel Pomerancblum
