Annex I. Iraq: Relations with the Fund
As of January 31, 2011
I. Membership status:
Date of membership: December 27, 1945
Status: Article XIV
II. General resources account:
|Fund holdings of currency||1,789.77||150.60|
III. SDR department:
|Net cumulative allocation||1,134.50||100.00|
IV. Outstanding purchases and loans:
V. Latest financial arrangements:
|Type||Date of Arrangement||Expiration Date||Amount Approved (SDR Million)||Amount Drawn (SDR Million)|
|Stand-By||Feb 24, 2010||Feb 23, 2012||2,376.80||772.46|
|Stand-By||Dec 19, 2007||Mar 18, 2009||475.36||0.00|
|Stand-By||Dec 23, 2005||Dec 28, 2007||475.36||0.00|
VI. Projected payments to Fund:
(SDR Million; based on existing use of resources and present holdings of SDRs):
VII. Implementation of HIPC Initiative: Not Applicable.
VIII. Safeguards assessments:
The Central Bank of Iraq (CBI) was subject to an update safeguards assessment, completed on June 14, 2010, with respect to the Stand-By Arrangement with the IMF approved on February 24, 2010. The assessment confirmed significant safeguards risks remained at the CBI, including heavily qualified external audit opinions, structural deficiencies in the control framework and concerns with operational controls, and delays in the completion of external audits and publication of financial statements. Mitigating measures have already been incorporated in the Stand-By Arrangement: an MOU governing budgetary support with the MoF, and the completion of (i) an NIR audit at June 2009 and (ii) the audited 2009 financial statements. To help further mitigate residual safeguards risks, the assessment recommended additional measures, some of which have since been implemented: expanded NIR and NDA reviews as at June 2010 were completed (with further reviews at test dates throughout the program); appointment of an international audit firm to conduct the 2010 audit; and a majority independent audit committee has been established with enhanced terms of reference. A further recommendation to co-source the internal audit function is in progress.
IX. Exchange rate arrangement:
The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis since October 4, 2003. The central bank followed a policy of exchange rate stability which has translated in a de facto peg of the exchange rate since early 2004. However, from November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate. As a result, the exchange rate arrangement of Iraq was reclassified to the category of crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of Iraq was reclassified effective January 1 2009 as a stabilized arrangement.
Iraq continues to avail itself of the transitional arrangements under Article XIV. Iraq has a generally unrestricted current account regime and a significantly liberalized capital account. However, four measures (plus one exchange restriction maintained for national or international security) have been identified to give rise to exchange restrictions subject to IMF approval, namely, (i) the requirement to pay all obligations and debts to the government before proceeds of investments of investors, and salaries and other compensation of non-Iraqi employees may be transferred out of Iraq, (ii) the requirement to submit a tax certificate and a letter of non-objection stating that the companies do not owe any taxes to the government before non-Iraqi companies may transfer proceeds of current international transactions out of the country, (iii) the requirement that before non-Iraqis may transfer proceeds in excess of ID 15 million out of Iraq, the banks are required to give due consideration of legal obligations of these persons with respect to official entities, which must be settled before allowing any transfer, and (iv) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In addition, one exchange restriction maintained for security reasons should be notified to the IMF under the framework of Decision 144-(52/51).
X. Article IV consultations:
The last Article IV consultation was concluded on February 24, 2010. The staff report (IMF Country Report No. 10/72) was published on March 16, 2010, and is available on the internet at http://www.imf.org/external/pubs/cat/longres.cfm?sk=23713.0
XI. Recent technical assistance:
|FAD||February 2005||Public Financial Management (Joint FAD-World Bank Mission)|
|April 2005||Budget Classification Reform|
|November 2006||Financial Management Information System|
|December 2006||Oil sector management and fiscal federalism|
|May 2007||Tax policy workshop|
|March 2008||Public Financial Management|
|August 2008||Oil sector—Pricing and Financial Flows|
|March 2008||Oil sector—Taxation|
|October 2009||Public Financial Management|
|May 2010||Public Financial Management|
|LEG||August 2008||AML/CFT raising awareness workshop|
|October 2008||Article VIII acceptance|
|February 2009||Workshop for financial intelligence unit and criminal justice officials on AML/CFT measures|
|April 2010||Phase One of the Three-Phase AML/CFT Capacity Enhancement and Sustainability Training Program|
|July 2010||Phase Two of the Three-Phase AML/CFT Capacity Enhancement and Sustainability Training Program|
|MCM||March 2007||Banking restructuring|
|March 2007||Banking supervision|
|September 2007||Banking restructuring|
|March 2008||Liquidity forecasting and management|
|April 2008||Bank restructuring workshop|
|July 2008||Reserves management|
|August 2008||Bank restructuring workshop|
|October 2008||Article VIII acceptance|
|December 2008||Reserve management|
|January 2009||Bank supervision workshop|
|March 2009||Banking supervision workshop|
|July 2009||TA coordination summit|
|November 2009||Reserve Management|
|November 2009||Banking supervision workshop-reporting forms|
|April 2010||Islamic banking workshop|
|August 2010||Reserve Management|
|August 2010-present||Remote assistance on liquidity management and treasury market development|
|April 2011||Risk management workshop|
|STA||January 2006||Balance of Payments statistics|
|March 2006||Monetary and Financial Statistics|
|November 2006||Balance of Payments Statistics|
|January 2007||Monetary and Financial Statistics|
|January 2007||Consumer price statistics|
|April 2007||Monetary and Financial Statistics|
|February 2007||National Accounts Statistics|
|November 2007||Consumer price statistics|
|February 2008||Balance of Payments Statistics|
|February 2008||National Accounts Statistics|
|January 2009||Balance of Payments Statistics|
|November 2009||National Accounts Statistics|
|April 2010||Balance of Payments Statistics|
|July 2010||Monetary and Financial Statistics|
|INS||February 2006||Financial Programming and Policies|
|February 2007||External Sector Issues|
|March 2008||Financial Programming and Policies|
|January 2009||Financial Programming and Policies|
|January 2010||Financial Programming and Policies|
XII. Resident Representative
Mr. Shbaikat was appointed on December 2010 as resident representative for Iraq. Due to the prevailing security situation he is currently based in Amman (Jordan).
Annex II. Iraq: Relations with the World Bank Group
As of February 18, 2011
1. Iraq, a founding member of the International Bank for Reconstruction and Development (IBRD), received six loans from the IBRD between 1950 and 1973 for agriculture, education, flood control, telecommunications, and transport. The last loan closed in 1979. Iraq was in non-accrual status from 1990 to December 2004, when it paid its arrears to the IBRD (about US$108 million). The Bank began reengaging with Iraq in 2003, with the preparation of Watching Briefs followed by a Joint Needs Assessment together with the United Nations. A first Interim Strategy Note (ISN) for Iraq, discussed by the Bank’s Executive Directors in January 2004, relied on grants from the multi-donor World Bank-administered Iraq Trust Fund (ITF) to finance projects. This was later supplemented by IDA credits and an IBRD Development Policy Loan.
D. The Bank Group Strategy and Operations
2. The World Bank’s Group’s third ISN for Iraq for the period FY2009–FY2011 was discussed by the World Bank’s Board of Executive Directors on March 19, 2009. The central guiding principle of the ISN is that the main role for the World Bank is to help Iraq use its resources more effectively and transparently and to lay the ground for private sector development. The ISN includes three thematic areas of engagement: (i) continuing to support ongoing reconstruction and socio-economic recovery; (ii) improving governance and the management of public resources, including human, natural and financial; and (iii) supporting policies and institutions that promote broad-based, private-sector-led growth, with the goal of revitalizing the private sector and facilitating job creation. The Bank is initiating preparation of a Country Partnership Strategy (CPS), which will cover the period FY12-FY15.
3. Analytical and Advisory Activities. In addition to financial support, the Bank places special emphasis on its analytical and advisory activities (AAA), including capacity building, policy advice, and economic and sector work, as key vehicles of Bank assistance to Iraq. Examples of recent key analytical work include a Report on the Management of the Public Distribution System (2005), a Public Expenditure Institutional Assessment (2008); and a Poverty Assessment (2010). An Investment Climate Assessment is underway, and a Country Economic Memorandum and a Public Expenditure Review are underway.
4. Public finance management reform continues to be a key component of the Bank’s engagement with Iraq. The PEIA, issued to the Government in June 2008, outlined steps for strengthening the accountability and transparency of public finance institutions and policies and help Iraq meet the goals set in the Iraq Compact. The PEIA underpins an Iraqi-owned public finance management reform program. A Public Financial Management project, financed through the World Bank-administered Iraq Trust Fund (ITF) was approved in June 2009 to provide technical assistance (TA) to help the GOI’s develop a more effective, accountable and transparent public financial management system. The Bank has also provided related support to modernize the public procurement system, including the drafting of a new public procurement law.
5. While focusing on public resource management, the Bank is supporting other key issues: strengthening social safety nets and modernizing the pension system; improving the efficiency and effectiveness of the Public (food) Distribution System; assessing poverty and vulnerability; improving management of oil revenues; and restructuring the state-owned banking system, for which an ITF-financed Banking Sector Reform project was approved in April 2009. The Bank has also provided policy support in a wide range of sectors including education, electricity, health, transport, water supply and sanitation, and water resource management.
6. World Bank Iraq Trust Fund (ITF). Seventeen donors have deposited US$494 million in the ITF. ITF projects focus on helping the GOI strengthen its institutional capacity to deliver services, utilize its resources in an efficient and transparent manner, and implement key reforms. ITF grants finance textbooks, schools, pharmaceuticals and health clinics, improved social safety nets, water supply and sanitation, irrigation and drainage, electricity, environmental management, private sector development, banking and public finance management reform efforts, and the development of a national energy strategy. The ITF also finances technical assistance to help strengthen Iraqi institutions to develop baseline poverty data, and improve social safety net targeting mechanisms.
7. The ITF is fully committed, with 19 active projects valued at US$439 million (5 additional projects for US$$89 million have now been completed). The vast majority of ITF projects are implemented by Iraqi agencies (15) to help the GOI develop effective institutions to ensure country ownership. Five projects, totaling US$21 million, finance technical assistance/capacity building activities that are implemented by the Bank at the request of the GOI. Commitments and disbursements continue to increase. Overall, as of December 31, 2010, project-level commitments totaled about US$333.6 million (about 76 percent of the grant amounts), and disbursements for project expenditures totaled US$281.6 million (about 64 percent of the grant amounts).
8. The following technical assistance (TA) operations have been the latest projects approved for ITF financing are: (i) Institutional Strengthening and Capacity Building for the Education Sector Project (US$3 million) to help four education ministries develop a coherent, Iraqi-owned, national education sector strategy; (ii) Pension Reform Implementation Technical Assistance Project (US$6 million) to support the Ministry of Finance in developing a long-term pension strategy to expand social insurance coverage, and unify the policies and administrative bodies of private and public sector pension schemes; and (iii) Integrated National Energy Strategy Technical Assistance Project (US$5 million) to support the GOI in formulating an Integrated National Energy Strategy covering the entire energy sector (including oil, gas and power), with particular emphasis on their coordination and on setting the stage for effective medium- and long-term development.
9. IDA and IBRD. In late 2004, Iraq benefited from an exceptional IDA (the Bank’s concessional assistance window) allocation of about US$500 million. Since then, the Bank has approved 5 IDA projects amounting to US$509 million, to finance projects in education, roads, electricity and water. Following a lengthy delay in identifying the required steps to make the credits effective, Iraq’s parliament ratified the four loans on July 2007, and the water project in September 2009. As of December 2010, project-level commitments totaled US$332.7 (about 68 percent of the credit amounts) and disbursements totaled US$104.0 (about 20 percent of the credit amounts) In February 2010, the World Bank’s Board of Executive Directors approved the first IBRD loan for Iraq--a US$ 250 million First Programmatic Fiscal Sustainability Development Policy Loan. This project was signed in March 2010; became effective in April 2010 and disbursed in May 2010.
10. The Bank engages a Fiduciary Monitoring Agent (FMA) to help supervise ITF and IDA project implementation. The FMA employs about 24 Iraqi professionals to monitor the physical implementation of projects and compliance with procurement and financial management requirements. The FMA visits projects sites and meets with ministry staff on a daily basis and provides monthly progress reports to the Bank.
11. IFC investment and advisory services and MIGA’s political risk guarantee products aiming at leveraging private financing. IFC’s committed portfolio in Iraq currently stands at US$65 million in 3 companies: a 10% equity stake in Credit Bank of Iraq in partnership with the National Bank of Kuwait (NBK); a US$14 million loan committed in FY10 to Malia Investments for the establishment of a Greenfield hotel in Erbil, and a US$45 million loan to Gulftainer (a UAE based container port operator) to support their investments in ports and logistics sector in Basra-southern Iraq The focus of the advisory services activities is to support the improvement of the Investment Climate, Financial Infrastructure strengthening, capacity building of the banking sector, selective SME management training, especially targeting women, and the promotion of public-private partnerships in collaboration with the World Bank. This program will be supported by the Iraq Business Assistance Facility (IBAF), a US$38 million multi-donor fund. In FY11, IFC expects to make new investment commitments in telecommunication, construction material and the power sectors as well as support trade finance through its Global Trade Finance Program (GTF).
12. MIGA approved a $5 million guarantee was approved in September 2010 for Karo Dis Ticaret ve Sanayi Ltd. of Turkey covering a shareholder loan to the Sebeel Al Safa Manufacturing Petrochemicals and Water Filling Company in Iraq. MIGA is considering future projects in housing, oil and gas, and telecoms. Additionally, MIGA has identified several potential projects for Iraq for support under its new Conflict Affected and Fragile Economies Facility (pending Bank Board approval of the facility this summer).
E. IMF-World Bank Collaboration in Specific Areas
13. The Bank is working closely with the Fund on the reform program in Iraq. The two institutions have conducted a number of joint missions and organized policy workshops and training courses for Iraqi civil servants and academics, covering public financial management, oil revenue management, intergovernmental finance, investment climate, payment system, banking supervision, social safety nets, and the like. There are no major differences of views between the two institutions on policy issues. The staffs are in broad agreement on the core reform program in Iraq, namely: (i) reinforcing public governance and institutions, including management of oil revenues; (ii) ensuring coherent and well-sequenced market-focused reforms; (iii) strengthening social safety nets; and (iv) improving delivery of essential services, including education and health.
14. The Bank and the IMF worked collaborated very closely in the design of their respective budget support operations for Iraq. The Bank’s Development Policy Loan and the IMF’s new Stand-By Arrangement mutually reinforce each other, and are underpinned by a similar set of structural reform priorities.
F. Areas in Which the World Bank Leads and There is No Direct IMF Involvement
15. Through ITF- and IDA-funded projects the Bank is providing emergency support to rehabilitate vital public services—education, health, water supply and sanitation, urban infrastructure, power, and telecommunications. The Bank anchors its project work in focused analysis of sector issues, and supports Iraqi capacity-building via policy workshops and training courses. The Bank leads work on gender issues; and has successfully facilitated the GOI’s efforts to undertake an Iraqi Household Socio-Economic Survey (IHSES) as well as a Poverty Reduction Strategy which was completed in June 2009 and included feedback from more than 100 donors and Iraqi stakeholders.
G. Areas in Which the World Bank Leads and Its Analysis Serves as Input into the IMF-Supported Program
16. The Bank has provided policy advice and inputs to the Prime Minister’s Supreme Economic Committee and to key ministries. Bank inputs are provided in the form of policy papers on key reform areas, such as subsidy reform, pension system and social protection, oil revenue governance, public finance management, civil service and payroll reform, restructuring of SOEs and public banks, investment climate, and trade policy and facilitation.
17. The IMF has a strong interest in the areas listed above from the macroeconomic perspective (economic growth and fiscal sustainability, including the phasing out of nontransparent quasi-fiscal operations). The IMF has also a strong interest in governance issues, in particular with regards to oil revenue management.
H. Areas of Shared Responsibility
18. The IMF and the World Bank are working together on macroeconomic and fiscal sustainability, revenue management, the reform of domestic subsidies, financial sector reform (comprising state bank restructuring, strengthening payment system and banking supervision and regulation), public debt management, and statistical capacity building. The Bank and the Fund closely coordinate their capacity building activities in macroeconomic management, public sector governance, private sector development, and social safety nets. The Bank’s design of the IHSES benefited from comments provided by the Fund.
I. Areas in Which the Fund Leads and its Analysis Serves as Input into the World Bank–Supported Programs
19. The IMF leads the dialogue on core macroeconomic policies and has taken the lead on debt sustainability analysis, monetary policy, and the management of aggregate expenditures. The Bank is working with the IMF to ensure consistency of the overall macroeconomic and fiscal framework. With the support of the IMF and the World Bank, progress in strengthening budget management and banking sector reform is underway. With support from the IMF, the Government also executed a debt restructuring program with all Paris Club creditors.
J. Areas in Which the IMF Leads and There is No Direct World Bank Involvement
20. The IMF leads the dialogue on monetary and credit policies, exchange rate management, tax policy and administration, and balance of payments issues.
Iraq Country Director: Mr. Hedi Larbi, contact number 5367-224.
|Area of Reform||Lead Institution|
|1. Market-focused reform|
|Reform of domestic subsidies||World Bank/IMF|
|Trade policy and facilitation/WTO accession||World Bank|
|2. Monetary and credit policies||IMF|
|3. External sector|
|Balance of Payments||IMF|
|4. Public sector governance|
|Public financial management||IMF/World Bank|
|Oil revenue management||World Bank/IMF|
|Fiscal Federalism||World Bank/IMF|
|Payroll reform||World Bank|
|Public debt management||World Bank/IMF|
|Intergovernmental finance||World Bank/ IMF|
|Governance and anticorruption||World Bank|
|5. Public service delivery|
|Education and health||World Bank|
|Power, water and infrastructure||World Bank|
|Agriculture, and environment||World Bank|
|6. Private sector development|
|Investment climate||World Bank|
|SOE reform||World Bank|
|Payment System Reform||World Bank/IMF|
|Financial sector development, incl. payment system and bank supervision and regulation||IMF/World Bank|
|Public banks restructuring||World Bank/IMF|
|Housing Finance||World Bank|
|7. Human development|
|Poverty analysis||World Bank|
|Pension reform||World Bank/IMF|
|Social protection strategy||World Bank|
|Labor market issues||World Bank|
|Gender issues||World Bank|
|Statistical capacity building||IMF/World Bank|
|Sector strategies (agriculture, power, telecommunications)||World Bank|
Annex III. Iraq: Statistical Issues
1. Data provided to the Fund, while broadly adequate for program monitoring, have serious shortcomings that significantly hamper economic analysis. Macroeconomic statistics have suffered from years of neglect and recent turmoil has added to the difficulties. While the Central Organization for Statistics and Information Technology (COSIT) remained in place, its technical expertise has become outdated. At the Central Bank of Iraq (CBI), statistical capacity is slightly better, but issues of interagency data sharing and data collection responsibilities are hampering progress on external sector statistics.
2. Since 2003, the Statistics Department (STA) has provided considerable technical assistance (TA) in all major datasets, including on dissemination standards. The authorities participate in the General Data Dissemination System (GDDS). The ongoing TA program takes into account the absorptive capacity of the statistical agencies involved, and the contributions of other donors.
B. Shortcomings of Statistical Framework
3. COSIT compiles annual and quarterly national accounts at currant and constant (1988) prices. Annual data of GDP by activity are available on the website of COSIT for 2001-07, and quarterly GDP data for 2007 and the first three quarters of 2008.
4. The national accounts follow the 1968 SNA, however, with technical assistance from STA, COSIT is moving towards implementing the concepts of the 1993 SNA. The quality of the national accounts compiled is poor, due to the lack of source data. There are no comprehensive source data available for estimating the value added by activity and for GDP expenditure categories. A Household Budget Survey (HBS), restaurants and hotel survey, and money exchange survey have been conducted during 2007 but, the results have not been processed yet. Public sector hotels are not covered in the survey because they are occupied by the coalition forces and their staff. An establishment survey was supposed to be conducted in 2007, but due to the security situation, COSIT was not able to conduct the scheduled survey. The data on the oil sector is generally adequate and timely, but there is little information on non-oil economic activity. COSIT still includes the Kurdistan Territory’s contribution to GDP by economic activities as percentages for each activity based on results obtained from previous estimates dating back to 1990. Other activities that started in the Kurdistan Territory after 1990 are not included. There are limited price and volume indicators which could be used for deriving volume measures of GDP. The base year (1988) is outdated and needs to be updated. Work is underway to move the base year to 2004.
5. Data collection is reasonably comprehensive for current price data in the formal sector. Under current procedures, businesses employing more than 10 people must report calendar year data by the following October, and small businesses need to report by the following June. Because there are sizable penalties for noncompliance, respondents usually meet these deadlines. However, with recent changes in the country, there is a risk that the timeliness of data reporting will deteriorate.
6. There is a shortage of quarterly and monthly indicators of economic activity and a lack of timely data for services. Quarterly GDP estimates are based on a limited number of indicators - crude oil output, electricity, rent of dwellings, and government expenditure. Nevertheless, for several industries, extrapolating from out-of-date benchmarks adversely affects data reliability. The results of the 2007 HSES should provide better indicators.
Consumer price index
7. Consumer price data are available with relatively short lags but do not cover the Kurdish region. Staffing is inadequate in number and training has been received only during STA technical assistance missions. There is not enough computer hardware and software to process the CPI efficiently. Recent technical assistance missions have focused on providing hands-on training on methodologies for compiling the CPI and on methods for making adjustments in the CPI for seasonality and changes in the quality of goods. Improvements in the CPI have been limited by outdated weights, which date back to 1993. Currently, COSIT is in the process of rebasing the CPI based on the 2007 HSES. Limited training has also been provided on methods for constructing the producer price index (PPI) and the wholesale price index (WPI) and on documenting the procedures and methods used to compile the CPI (metadata); work in this area is continuing.
Monetary and financial statistics
8. Notable progress has been made in developing the components and structure for compiling a depository corporations survey, but the quality of the data continues to be hampered by several factors: (i) the lack of sufficiently trained staff and adequate internal cooperation within the CBI; (ii) difficulty in collecting information on banking transactions in the northern region (Kurdistan); (iii) a chart of accounts (COA) that is not fully compliant with current monetary and financial data requirements—the CBI approved in April 2007 a resolution for drafting a new COA by end-2008; (iv) the use of pre-conflict forms for reporting monetary statistics; and (v) the balance sheet presentations for the commercial banks that do not conform with the sectorization and instrument classification of the Monetary and Financial Statistics Manual (MFSM).
The recent mission (July 2010) found that the authorities have made progress in implementing the recommendations from previous missions. However, the mission noted the need for the CBI to undertake actions on: (i) improving sectorization of data—provided by Rafidain bank—that are currently classified under general government sector and public nonfinancial enterprises; (ii) clarifying the status of negative balances for other central government deposits and miscellaneous liabilities in foreign currency as identified in 1SR SRF; and (iii) developing a draft of the bridge table on mapping the new other depository corporations (ODCs) source data onto 2SR SRF.1
Balance of payments statistics
9. Balance of payments statistics are available to the Fund for 2005-2008 in the IMF’s Balance of Payments Manual, fifth edition (BPM5) format. The quality of the information for recent years has improved; however, the presentation is still limited due to coverage problems and some deviations from the internationally acceptable methodologies. Issues regarding the recording of external debt data continue to impact the coverage and timeliness of balance of payments statistics. International reserves are compiled consistent with international methodologies and published in the IFS since end-2006.
10. A recent TA mission (April 2010) noted that the quality of the information remains hampered by the lack of data submission to the CBI from other government institutions and the private sector. The paucity of data exist particularly in the areas of external trade in goods and services, foreign direct investment and external debt statistics.
To help address these and other issues, the mission proposed several short-term recommendations, including improved interagency cooperation on direct investment and external debt statistics, further implementation of the international transactions reporting system, and the development of international investment position data. External trade statistics
11. External trade data have serious problems of timeliness and are of poor quality. A new customs form for imports is available but it is not being used at the customs border due to the security situation and the lack of Customs Department resources at the border outlets.
Coverage of private sector imports is constrained by data sources. Only goodsthat are paid for through the Iraqi banking system are captured. Thus goods that are imported under external payments arrangements (for example, imports for direct investment projects) are not recorded in the balance of payments. The coverage of the external trade statistics excludes the northern region of the country (Kurdistan), and no estimates for smuggling are made.
12. Export data from the oil sector are received from the BOPSD at the CBI. The non-oil export data, which amounts to the equivalent of 3-5 percent of total exports, are compiled based on information from the customs export form. Non-oil export data are provided to the CBI on a monthly basis for crosschecking purposes.
13. Despite the difficult security situation, which has a direct impact on data compilation and analysis, the provision of fiscal data for program monitoring purposes has been satisfactory. Infrequent submission delays occur, and coverage of the Kurdish region remains sketchy. However, the authorities are taking measures to address these shortcomings.
14. In February 2005, an STA mission—held jointly with a parallel FAD and World Bank mission—discussed a work plan aimed at building up reporting as an integral part of a major rehabilitation of the budgetary, accounting, and fiscal management information system. The mission identified institutional, technical, resource, and coordination issues that would need to be addressed prior to developing the government finance statistics (GFS). These include establishing a macro-fiscal directorate-general in charge of developing and disseminating fiscal statistical data, implementing the classification for mapping the chart of accounts and budget classification onto the format of the Government Finance Statistics Manual (GFSM 2001) (an area where significant progress has been made), and preparing preliminary estimates of GFS-compliant data for general government on a best effort basis. The Ministry of Finance has also set up a debt unit with the support of external consultants. Iraq does not report government finance statistics for publication in the Government Finance Statistics Yearbook (GFSY) or IFS. Currently there are no fiscal statistics published by the government beyond the summary of central government budgetary estimates and outturn.
SRFs are the standardized reporting forms used by STA to collected monetary and financial statistics in a structured way (by instrument, currency and sector). 1 SR refers to the central bank form; and 2 SR refers to the form for ODCs