IMF, World Bank ready to support Iraq
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At a press conference following the IMFC meeting, IMF Managing Director Horst Köhler said that it was premature to decide on the timing of any staff visit to Iraq, but added that "there is an understanding that the World Bank and the IMF should prepare themselves and should take up this task." This will represent the first official contact between Iraq and the IMF in many years. Iraq has been a member of the IMF since 1945, but the last Article IV consultation (annual discussion between the IMF and a member country on the general health of the economy) was completed in 1980; its 1983 consultation was prepared, but never completed.
Although Iraq does not have any outstanding loans from the IMF, it does have arrears of close to $72 million (slightly over SDR 52 million) on its use of SDRs.
In their final communiqués, both the IMFC and the Development Committee pointed to the pressing need to "restore security, relieve human suffering, and promote economic growth and poverty reduction.We support a further UN Security Council resolution.We further note that engagement by the international community including the Bretton Woods institutions would be essential for sustained economic, social, and political development in Iraq, recognizing that the Iraqi people have the responsibility to...
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