Article quote: “Sovereignty was confirmed by the government for its part will be faithful to its commitments under an agreement to prepare the credit program, which reached his recent between Iraq and the International Monetary Fund, which has contributed greatly to stimulate the donor countries to provide adequate support, and enhance the credibility of Iraq’s finance in the global financial markets and the rating agencies global credit.”
We get a greater peek at the power of this and future loan agreements to Iraq.
You may think them taking loans is a bad thing but not so.
First, countries have faith in Iraq’s ability and intention to repay.
Second, Iraq taking and repaying these loans will enhance their credit rating with the rating agencies.
This will in turn allow them to lower interest rates and expand the pool of lenders in future loans.
This is not a sign that Iraq is struggling and needs help.
This is a sign that Iraq has matured to participate more in the global economic finance partnerships.
