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IMF Says Iraq Seeks Emergency Loans After Falling Oil Prices | Business and economic news

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The Iraqi government would seek $ 6 billion in loans, with the possibility of an additional $ 4 billion, according to the finance minister.

Iraq has requested emergency aid from the International Monetary Fund (IMF) and talks are underway between the parties, the IMF said.

Iraqi Finance Minister Ali Allawi told the Bloomberg news agency earlier that Iraq was in talks with the IMF for a loan of $ 6 billion.

“The Iraqi authorities have requested emergency assistance from the IMF under the Quick Financing Instrument and have indicated their intention to also seek a longer-term arrangement with the IMF to support planned economic reforms,” ​​said Sunday. evening a representative of the IMF in an email. declaration.

“Discussions on the authorities’ request for emergency aid are ongoing.”

The IMF’s Rapid Financing Instrument (RFI) provides rapid financial assistance, available to all member countries facing an urgent balance of payments need.

According to the IMF website, financial assistance for DDR is provided without the need for a full-fledged program or review.

Oil pressure

Iraq could ask for an additional $ 4 billion in low-cost loans under another program linked to government reforms, Allawi said on Sunday.

Iraq devalued its dinar currency last month after collapsing global oil prices, a major source of Iraq’s financial resources.

Allawi told Bloomberg that Iraq has also planned other types of funding to help close the budget deficit. Once the spending plan is approved, the government would issue $ 5 billion in national bonds to broaden its financial base, he said.

The Organization of the Petroleum Exporting Countries (OPEC) member economy has only a small manufacturing base and almost all imported products are valued in US dollars. A drop in the value of the dinar makes these imports more expensive.



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