News Briefs
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Two IMF conferences aimed to promote the exchange of ideas and experience on both sides of the sovereign balance sheet among officials from emerging and mature market countries and private-sector representatives.
Participants at a November 5-7, 2007, forum for public debt managers heard that there would be a modest growth slowdown in mature markets in response to recent market turbulence, but that there would be continued strong growth in emerging markets. However, participants recognized that the market turmoil might not yet be fully played out and may affect debt issuance and financing plans.
A November 15-16, 2007, roundtable for sovereign asset and reserve managers attracted delegates representing about $5 trillion of sovereign external assets, including most of the largest sovereign wealth funds (SWFs) and officials from central banks and finance ministries. Discussions covered trends in reserve accumulation and their implications for central bank balance sheets. The event also advanced a call by the International Monetary and Financial Committee, which sets IMF policy priorities, for a dialogue on best practices for SWFs.
The IMF Executive Board on December 20 approved a successor Stand-By Arrangement for Iraq of about $744 million to support the country's economic program through March 2009. Iraqi authorities plan to treat the arrangement as precautionary, the IMF said.
The new arrangement follows Iraq's cancellation of an earlier Stand-By Arrangement and repayment of the $470.5 million borrowed in 2004 under the Emergency Post-Conflict Assistance policy. The final payment of that obligation was not due until 2009.
Following the December 20 Board action, Takatoshi Kato, Deputy Managing Director, said that "Iraqi authorities have succeeded in keeping their economic program on track in 2006-07, despite the difficult security and political situation." He cited, among other things, strong anti-inflation policies, elimination of most direct subsidies, new legislation that has made the pension system fiscally sustainable, and a modernized payments system.
Economic performance...
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