The Iraqi government is looking to implement the national reconciliation project in the country. This step will be taken due to the conditions imposed by the World Bank for providing financial support for Iraq.
It has been interpreted by the financial specialists and observers regarding the retreatment by the financial support by the World Bank in the light of current financial crisis in the country and an increase in the federal budget deficit for the current year. This situation is pointing to the fears of inability of Iraqi government for paying the salaries of state employees during the current financial year. It is important that the global oil prices are still below the level of determination, in spite of the OPEC agreement of petroleum exporting countries. The Regional Director of the World Bank issued a statement that the Bank is interested in providing financial support for Iraq according to the projects regarding the reconciliation after eliminating Daash. But, Iraqi government should ensure the sustainability of reconstruction after conflicts for several years.
A famous economist Muhammad Al-Hassani said that the global oil prices are still below the striving level despite an agreement of OPEC for freezing the production. The current figures are showing worst situation in the crisis on the grounds because a large portion of the Iraqi federal budget is relying on its oil export revenues. Now, the government of Iraq is looking to get foreign loans from the IMF and the World Bank to overcome fiscal deficit problems. The World Bank recently issued a statement that the unavailability of developmental projects in the country pushed Iraq into the economic collapse condition. It was due to unavailability of additional supports for imports in the Iraqi federal budget. The Bank stressed to activate the development projects and the implementation of perfect mechanisms to support Iraqi economy. Point to be noted that the Iraqi Finance Ministry has confirmed the security of salary for state employees for the year 2017. It is important that the World Bank had approved a new loan of 1 billion 485 million U.S dollars to support the Iraqi economic condition.