Monday 12 December 2011

Iraq makes strides but debt mountain remains - FT.com

As some of the last convoys of US troops began their long journey home last week, one measure of what has been achieved in Iraq was becoming apparent.

In Baghdad, the Iraqi cabinet approved budgeted spending of $100bn for next year on the basis of oil exports of 2.6m barrels a day, up from 2.2m b/d this year. The budget, which has yet to be approved by parliament, is based on an oil price assumption of $85 a barrel.

In regard to Iraq, international attention has tended to focus on lingering security concerns but, eight years on from the US-led invasion, growing oil production and the ability to deploy sizeable public spending are only one of a series of economic achievements. The Central Bank of Iraq has $50bn in reserves and presides over low inflation and a relatively stable exchange rate, according to the International Monetary Fund, which administers a two-year standby agreement with Iraq.

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