Iraq in Talks with IMF over Aid After Oil Revenue Collapse

The Iraqi government is negotiating with the International Monetary Fund (IMF) over possible financial assistance after the conflict in the Middle East severely affected the country’s economy, a source close to the IMF said.

Initial talks took place last month during the IMF and World Bank spring meetings in Washington. Discussions are continuing over the size of any support package and the conditions attached to a potential loan.

Iraq has faced mounting economic pressure since the outbreak of conflict between Iran and US-Israeli forces on 28 February. Tehran later closed the Strait of Hormuz, disrupting trade and energy flows across the region.

Iraq has been among the countries hardest hit. Much of its oil export activity has been disrupted, while crude sales account for the vast majority of state revenue.

Baghdad is now seeking ways to stabilize public finances amid the ongoing regional crisis and a sharp decline in key income sources.

(reuters, bak)