International Monetary Fund: We are developing a new financial assistance program for Iraq.
The International Monetary Fund has announced that it is talking with the Iraqi authorities to formulate a new financial assistance program for this country whose economy has been damaged by the war with Iran.
Iraq's economy is highly dependent on energy exports, and almost all of the country's energy exports pass through the Strait of Hormuz. But following the American war against Iran and the closing of the Strait of Hormuz, Iraq's oil exports were severely disrupted.
Even before the start of the war, Iraq faced severe economic constraints. The International Monetary Fund predicted in October that the country's economy would shrink by 16 percent this year.
International Monetary Fund spokeswoman Julie Kozak told a press conference in Washington: "Our current plan is to engage with the Iraqi authorities to better understand their priorities and how they want to address their economic vulnerabilities." Then we will look at how we can provide them with the best help through a support program."
Referring to Iraq's severe funding constraints, which existed before the start of the war, he emphasized that the country's limited non-oil sources of income put additional pressure on the government's financial balance sheet.
The last of Iraq's three most recent programs with the International Monetary Fund ended in 2019.
According to the International Monetary Fund, Iraq will owe a total of $428 million in interest payments to the fund by 2030.