IMF Says Iraq Seeks Emergency Loans After Falling Oil Prices | Business and Economy News
The Iraqi government is said to be looking for $ 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 over a $ 6 billion loan package.
“The Iraqi authorities have requested emergency assistance from the IMF under the Quick Finance Instrument and have indicated their intention to also seek a longer-term arrangement with the Fund to support planned economic reforms,” ââsaid Sunday evening a representative of the IMF in an e-mail. declaration.
âDiscussions on the authorities’ request for emergency aid are ongoing.
The IMF’s Rapid Financing Instrument (IFR) provides rapid financial assistance, which is available to all member countries facing an urgent balance of payments need.
Financial assistance under the RFI is provided without the need for a full-fledged program or review, according to the IMF website.
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 last month after collapsing global oil prices, a major source of Iraq’s financial resources.
Allawi told Bloomberg that Iraq is also planning other types of funding to help close the budget deficit. Once the spending plan is approved, the government will proceed to issue $ 5 billion in national bonds to broaden its financial base, he said.
The economy of the members of the Organization of the Petroleum Exporting Countries (OPEC) has only a small manufacturing base and almost all imported products are denominated in US dollars. A drop in the value of the dinar makes these imports more expensive.