Iraqi Finance Minister, Bayan Jabor
The SBA, or “Stand By Agreement”, is being considered for a third renewal. Iraqi Finance Minister Bayan Jabor is warning of an impending crisis if the price of oil and the volume of exports remains at current levels. Oil exports are down slightly, while the price of oil is down about two thirds.
The previous IMF (International Money Fund) Stand By Agreements were put in place when Iraq needed to borrow less than $1 billion dollars - this time around, they are looking at $5-7 billion USD.
Iraq has received a proposal from the IMF secure the loan, but Iraqi lawmakers are hesitant due to “tough” conditions.
Bayan Jabor declined to say what these conditions might be, but said there was
“sensitivity to any conditions that would dictate oil or currency policy, for example.”
Entering into another agreement will limit Iraq’s ability to control their own currency, the Iraqi Dinar, among other things.
Source: Arabian News
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