IMF Extends Iraq's Loan Program Through Sept 2007
WASHINGTON -(Dow Jones)- The International Monetary Fund said Tuesday it had agreed to extend Iraq's loan program, worth roughly $715 million, by six months through September 2007.
Since signing the agreement in December 2005, Iraq has treated the credit line as precautionary.
"Despite very difficult political and security circumstances, the Iraqi authorities have taken important measures to keep their economic program on track," IMF Deputy Managing Director Takatoshi Kato said in a statement.
Kato noted Iraq's reforms to pension laws, and the increase in government administered fuel prices. He also said the government's efforts to improve accounting of government spending were also "encouraging."
Looking forward, Iraq's central bank will likely have to take further steps to control inflation, he said. Iraq also needs to make further progress in resolving debts the government owes to private creditors and those official creditors outside the Paris Club.
-By Elizabeth Price, Dow Jones Newswires; 202-862-9295; Elizabeth.Price@ dowjones.com