In its first review of Iraq since 1980, the International Monetary Fund underscored the need for the country to adopt a constitution, which it said holds the key to the latter?s economic recovery. Lorenzo Perez, one of the report?s co-authors, deemed the approval of the charter "an important step in the political and economic development process of Iraq." The review noted that "while the long-run prospects are well supported by its substantial resource base, Iraq still faces daunting challenges and downside risks in reconstructing its economy." Fund officials said they welcome the country?s wish to secure a standby agreement by the year?s end, but, first, authorities must take "strong action on fiscal and oil sector reforms" and focus "on a reinvigoration of structural reforms and further steps to improve governance and the country's institutional and administrative capacity." (Source: IMF says Iraq's embattled economy needs new constitution/Agence France-Presse)
