Iraq Seeks IMF Assistance Amidst Economic Turmoil in Middle East

Iraq is in discussions with the International Monetary Fund (IMF) to secure financial aid due to economic setbacks from conflicts in the Middle East. A source close to the IMF indicated that initial talks occurred at last month's spring meetings of the IMF and World Bank in Washington. The discussions are ongoing regarding the amount of funding required and potential loan structures.

An Iraqi official mentioned that the talks revolve around mitigating a budget deficit caused by halted oil exports. This halt follows the Iran war, leading to the closure of the Strait of Hormuz, which played a crucial role in transporting one-fifth of the world's crude oil.

IMF spokeswoman Julie Kozack confirmed that the IMF is collaborating with the World Bank and the International Energy Agency to evaluate the war's impact. Kozack noted potential financial assistance demand from at least 12 countries could reach $20 billion to $50 billion. Iraq, with its economy heavily reliant on oil exports, last engaged with the IMF in a $3.8 billion standby arrangement, drawing $1.49 billion before expiring in 2019.

(With inputs from agencies.)