IMF says Iraq has asked for emergency aid, talks continue


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

Iraqi Finance Minister Ali Allawi told Bloomberg News 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,” ​​said an IMF representative in an e-mailed statement.

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

The IMF’s rapid financing instrument 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 the dinar last month after collapsing global oil prices, a major source of Iraq’s financial resources.

Allawi told Bloomberg that Iraq was also planning other types of financing to help close the budget deficit. Once the spending plan is approved, the government would proceed to issue $ 5 billion in national bonds to broaden its financial base.

The OPEC member economy has only a small manufacturing base and almost all goods are imports at dollar prices.

Report by Kanishka Singh in Bengaluru; Editing by Stephen Coates and Peter Cooney


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