ISSUED ON BEHALF OF THE IRAQI MINISTERS OF FINANCE AND TRADE AND THE

GOVERNOR OF THE CENTRAL BANK OF IRAQ

 

 

 

 

IRAQ DELEGATION MEETS WITH WORLD BANK AND IMF – ‘FACT-FINDING’ AGENDA Statement from the Iraqi Ministers of Finance and Trade and the Governor of

the Central Bank of Iraq

 

 

At the conclusion of a three-day meeting between a delegation from Iraq with

the World Bank and International Monetary Fund (IMF), Iraqi Minister of

Finance Kamel al-Gailani today emphasized the continuing need to work

closely with international financial institutions in rebuilding Iraq’s

economy.

 

Speaking in Amman, where the meeting took place, he said:

 

“The meeting was an opportunity for Iraq to bring the World Bank and IMF up

to date with its current economic position, to outline some of the reforms

that have recently been enacted - and to look forward, through the next six

months to June 2004 when sovereignty will be transferred, and beyond.

 

“It was the most recent in a series of contacts with the Bank and the Fund. 

No loans or loan conditions were discussed.

 

“It was also an opportunity for the Bank and the Fund to describe their

programme requirements and processes to the Iraqis as well as to offer

comments and advice where appropriate and to outline where they could

provide technical assistance in their areas of competence.

 

“The meeting agreed that a macro-economic reform programme to modernize the

outdated economic system and to help fight poverty was essential.  The Iraqi

delegation stressed that this must be conducted in a socially sensitive

manner, so that the benefits of change would be visible to all.

 

“Such a programme could, in the future, help in the renegotiation of Iraq’s

external debt.

 

“The opportunity to talk through Iraq’s economic position with experienced

economists from the Bank and the Fund was extremely useful.

 

“Iraq looks forward to developing a broad relationship with these bodies.”

 

Governor of the Central Bank of Iraq Dr Sinan al-Shabibi, also attending the

meeting described some of Iraq’s recent economic successes, including the

creation of an independent central bank, but emphasized the broad need for

international assistance in continuing the reconstruction effort.  He said:

 

“In the months since the conflict ended much has already been achieved.  I

head a central bank now free of government control for the first time in

decades.  Together with my team I am working to modernize our institution,

policies and practices.  Already, with help from the Coalition Provisional

Authority (CPA) we have instituted a new currency and our huge currency

exchange programme is two-thirds complete.  We have also established a daily

foreign exchange auction.

 

“But Iraq has been isolated from international developments for many years.

This affects capacity in all areas.  We told the Bank and the Fund that a

great deal of training is needed and that ongoing technical assistance is

required, to help build on the work we have done with the CPA.  The Bank and

the Fund pledged training assistance to Iraqi financial institutions.”

 

Iraqi Minister of Trade Dr Ali Allawi also in attendance said:

 

“Iraq’s relations with the rest of the world continue to normalize,

particularly in the economic sphere.

 

“I told the Bank and the Fund that foreign investors are now beginning to

come forward – here in Amman just yesterday, for example, firms from around

the region and from the UK attended a British-hosted event aimed at

encouraging trade.

 

“We are encouraging private business at home too.  The private sector will

play an important part in regenerating Iraq’s economy.

 

“With the help of the international community and the financial institutions

Iraq can relatively quickly stand on its own two feet.  We aim to create an

attractive location for business and investment to ensure our future is

prosperous.”

 

Notes to Editors:

1.    The meeting took place in Amman, Jordan from 8th-10th December 2003.  A

previous, linked meeting was held on 3rd December.

2.    The delegation from Iraq comprised the Ministers of Finance and Trade,

the Governor of the Central Bank of Iraq and representatives of each of

their Ministries as well as representatives from the Ministry of Industry. 

Directors of the Rasheed and Rafidain Banks were also present.  The

delegation was accompanied by technical advisors from the CPA. The earlier,

3rd December meeting was attended by the Iraqi Minister of Planning who was

unable to attend the later meeting and CPA advisors.

3.    Future meetings are scheduled for early 2004.