IMF Completes Reviews of Iraq's Economy

WASHINGTON (AP) -- The International Monetary Fund said Thursday that it has completed two reviews of Iraq's economic performance, keeping open a credit line to the country.

An arrangement with the IMF, approved in December, gives Iraq access to a credit line worth about $705.6 million should the country need to tap into it. The IMF said the arrangement is "being treated as precautionary by the Iraqi authorities."

The Iraqi government is making progress on some economic matters despite continued violence in the country. The country has been struggling to rebuild its economy after the U.S.-led war.

"The Iraqi authorities have taken important and decisive measures to bring their economic program back on track, although continued progress in the authorities' reform efforts will remain critically dependent on an improvement in the security situation," the IMF said in a statement.

Separately, the Bush administration earlier this week expressed optimism about countries boosting international economic support for Iraq.

Deputy Treasury Secretary Robert Kimmitt, the president's special envoy on the issue, said he was hopeful that the necessary work will be completed in coming months so that an international conference to collect pledges of financial support can be held by the end of November.

A donors conference for Iraq held in 2003 raised an initial $13.5 billion, but so far only $3.5 billion to $4 billion of that amount has been disbursed, Kimmitt has said.

IMF: http://www.imf.org/