BAGHDAD-INA
Prime Minister Ali Faleh Al-Zaidi met in Washington yesterday evening, Wednesday, Baghdad time, with President of the World Bank Group (WBG) Ajay Banga and the accompanying delegation, which included IFC Managing Director Makhtar Diop and a number of senior World Bank officials.
Media Office of the Prime Minister said in a statement received by the Iraqi News Agency INA that “During the meeting, Prime Minister Al-Zaidi affirmed that Iraq is experiencing a high level of stability, which will have a positive impact on the country’s economic and investment environment. He noted that the Iraqi economy is expected to achieve clear growth in light of the policies and reforms the government has begun implementing.”
The statement added “The Prime Minister stated that the government attaches particular importance to reforming the banking sector and adopting program-based budgeting to ensure the efficient allocation of resources toward achieving development. He also stressed the government’s commitment to shaping a new economic identity for Iraq based on diversification, reform, and sustainability, while increasing oil production to meet development requirements in parallel with developing non-oil sectors and enhancing their contribution to the national economy.”
The statement further said “Prime Minister Al-Zaidi explained that the government is moving forward with the establishment of the Development Fund, which will finance investment projects across all governorates and expand the financing available to qualified Iraqi banks, while supporting and empowering Iraq’s private sector to serve as a key partner in the country’s development process.”
For his part, World Bank Group President Ajay Banga expressed his admiration for the progress Iraq has made in recent years in consolidating stability and peace. He affirmed that Iraq possesses strong resources and capabilities that can drive broad economic transformation if properly utilized.
Mr. Banga also expressed the World Bank’s readiness to provide Iraq with technical and advisory support in the areas of program-based budgeting and banking sector restructuring. He further proposed studying the establishment of a major Iraqi bank holding company through the merger of several state-owned banks, in a manner that would enhance the efficiency of the financial sector and support the country’s economic reform process.