[stop-imf] Iraq Submits to the IMF - the Details

[robert weissman]

Country's Policy Intentions Documents -- Iraq: Letter of Intent,
Memorandum of Economic and Financial Policies, and Technical Memorandum
of Understanding, December 6, 2005

http://www.imf.org/External/NP/LOI/2005/irq/120605.pdf

Excerpts:

* A cornerstone of our strategy is the reduction of subsidies on
petroleum products and  the expansion of the market that is open to the
private sector. As part of that strategy, we have  submitted to the
National Assembly a law authorizing the importation of these products by
the  private sector for resale domestically at market prices. We are
also poised to increase  nationwide the official price of regular
gasoline from ID 20 to ID 100 per liter, and of  premium gasoline from
ID 50 to ID 250 per liter.

* [The program seeks] to move  away from general subsidies toward
providing better social and public services, including in  education,
health, transportation, electricity, and security, and the reform of the
social safety  net into a more efficient and targeted system.

* In view of the large increases that took place in the last couple of
years, the wage and  pension bill (except for wages of the defense and
interior ministries) will be limited in nominal  terms to ID 9.3
trillion in 2006 (and will be subject to a quantitative performance
criterion).

* The GoI will also postpone any changes to the  existing pension
system, and will adopt by end-June 2006 a plan to be prepared with the
technical assistance of the World Bank to make Iraq=92s pension system
sustainable.