Iraq is turning to the IMF for a potential loan of up to $9 billion.
Iraq is turning to the IMF for a potential loan of up to $9 billion.
10-19-2026
Information/Baghdad…
Political and economic affairs researcher Nabil Jabbar al-Tamimi revealed on Monday that Iraq is preparing to borrow between $5 billion and $9 billion from the International Monetary Fund (IMF) as a precautionary measure to address its severe financial crisis and support the stability of its balance of payments. He emphasized that Iraq is the second most economically affected country by the ongoing conflict in the region, after Iran.
In a statement to the Information Agency, al-Tamimi said, “The IMF, which includes 191 member countries, of which Iraq is one, is a contributory institution concerned with the financial stability of nations, not a commercial bank.” He explained that “Baghdad’s resort to borrowing stems from a sharp decline in financial revenues over the past six months by approximately $30 billion, in addition to the depletion of the Central Bank of Iraq’s reserves by about $25 billion, alongside a significant contraction in the gross domestic product.”
Al-Tamimi explained that “the IMF employs three financing mechanisms and programs; the first is the Stand-By Agreement, which is usually linked to an economic reform program; the second is the Rapid Financing Instrument, which is designed to address emergency balance of payments deficits without requiring prior reforms; and the third is the Extended Fund Facility, which is directed at countries suffering from deep structural imbalances and requiring medium- and long-term solutions.”
The economist predicted that “Iraq will likely pursue a medium-term financing agreement worth between $5 billion and $9 billion to enable the government to cover the existing balance of payments deficit resulting from weak revenues and to confront current economic shocks.”
almaalomah.me
