MESOP BACKGROUND KURDISTAN – IRAQ / MORE MONEY FOR A TOTAL CORRUPT SCENERY

IMF Agrees to $5.4 billion Rescue Package: In response to a “gaping hole” in Iraq’s budget, the International Monetary Fund (IMF) agreed to give Iraq a three-year  $5.4 billion dollar bailout, which will require the Iraqi government to implement subsidy cuts and multi-sector reforms to combat corruption. According to Financial Times, Iraqi politicians expressed concern that the government will be unable to meet the terms of the deal, which calls for raising taxes, implementing “unpopular cuts in public spending,” and efforts to eradicate the patronage system that has “enriched Iraqi politicians since the US occupation of 2002.” Christian Josz, IMF mission chief for Iraq, called for urgent international participation as the Iraqi central government and economy are on the “verge of collapse.” According to Al-Monitor‘s Ali Mamouri, all possible solutions to the political crisis will continue to be stalled due to a security and economic situation that does “not offer a stable setting for radical changes in the government.” www.mesop.de