The
International Monetary Fund (IMF) has called on the Iraqi government to cut
spending on the electric power sector, in addition to a comprehensive reform of
the banking sector.
It also called Iraq to seize
the opportunity to improve the security situation and high oil prices to
implement structural policies and reforms to ensure the economic stability. IMF
stressed the need to implement the reduction of subsidies to the electricity
sector, considering it a priority in controlling expenditure, and protect the
poorest and least-income groups from being affected by the financial controls.
The IMF also requested the Iraqi government to undertake a comprehensive reform
of the banking sector in order to maintain financial stability by restructuring
and strengthening the control of large state-owned banks, and increasing the
control on it.
The Iraqi government supports
the electricity sector in the country, benefiting the various segments of
society in the domestic and commercial categories. On April 30, the Iraqi
government signed a contract worth more than 14 billion Euros with the German
company “Siemens” to develop the electric power sector in the country.