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Iraq has requested emergency aid from the International Monetary Fund and talks are underway between the parties, the IMF said on Sunday evening.
Iraqi Finance Minister Ali Allawi told Bloomberg News earlier, Iraq was in talks with the IMF for a $ 6 billion loan.
“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 IMF 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, available to all member countries facing an urgent balance of payments need.
According to site IMF Web https://bit.ly/3c6YubX, financial assistance under the RFI is provided without the need for a full-fledged program or review.
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 https://bloom.bg/3peGG2h that Iraq has also planned other types of funding to help close the budget gap. Once the spending plan is approved, the government would issue $ 5 billion in national bonds to broaden its financial base.
The OPEC member economy has only a small manufacturing base and almost all products are dollar imports.
(Reporting by Kanishka Singh in Bengaluru; Editing by Stephen Coates and Peter Cooney)
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