Iraq 

Iraq country policy

Policy established 01 July 2011

• Case-by-case assessment
• The country ceiling is 1000 mln euro
• Early warning signal 200 mln euro
• - of which was used as at 2011-08-31 110 mln euro

Country class: 7

Uitsluitend contante zaken/cash business only

Centrale overheidsgarantie (onvoorwaardelijk)/guarantee central government

Iraq country facts

Atradius DSB Economic Research

Country Report last updated :  Nov 10th, 2009
Country :  IRAQ  

Political Situation
Unstable, Violence, But Progress

Head of state
President Jalal Talabani, Prime Minister Nouri al Maliki (both since 2005).

Form of government
Government of National Unity

Internal Economic Situation
2009 5.4% Real Gdp Growth,  Oil-Dominated

General situation
Modest optimism. 5.4% real GDP growth. Oil revenue constitutes 98% of export earnings and 75% of budget revenue. Budget deficit of 27% GDP and hardly inflation (3.5%). Monetary and exchange rate policies have been adjusted (loosened) in response. Increase in public current (salaries) spending, capital spending “frozen”. No direct fuel subsidies. Slow appreciation of IQD against USD; positive real interest rates. Structural reforms continue at very slow pace. No developed banking sector, poor asset quality  / inadequate capitalisation. Considerable NPL/total loans ratio.
Qualification econ. management
Economic policy has little priority given the political turmoil. Economy vulnerable both to fluctuations in oil prices and production and to sabotage of oil facilities. Difficult to pursue effective monetary policy.

External Economic Situation
Despite Pc Debt Write-Off Poor Solvency

Main sources of foreign exchange
Crude oil (98%)

Main foreign markets
US (49%), Jordan (8%), Canada (8%), Italy (8%).

Main expenses of foreign exchange
Capital goods, consumer goods.

Balance of payments 
lower oil prices turn BOP, despite Kurdish pipeline in production.