Suffering from severe financial crisis, the government of Iraq has requested emergency assistance from the International Monetary Fund and talks are ongoing between the parties.
According to the media reports, Iraq finance minister is in talks with the IMF for a $6 billion loan package. He added that Iraq also planned other types of funding to help plug the budget gap. Once the spending plan was approved, the government would move to issue $5 billion in domestic bonds to expand its financial base.
An IMF representative said in a statement that Iraq authorities have requested emergency help from the IMF under the Rapid Financing Instrument, and indicated their intention to also request a longer-term arrangement with the Fund in support of planned economic reforms.
The statement added that, “Discussions of the authorities’ request for emergency assistance are ongoing.”
The IMF’s Rapid Financing Instrument provides quick 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.
It is worth mentioning here that Iraq devalued the dinar last month after a collapse in global oil prices, a major source of Iraq’s financial resources.
