International Monetary Fund: We are preparing to lend to Iraq
International Monetary Fund: We are preparing to lend to Iraq
2026-10-29
Shafaq News – Washington
The International Monetary Fund announced on Thursday that it is preparing a new lending program for Iraq, whose economy has been severely damaged by the repercussions of the war with Iran, after beginning talks with authorities in Baghdad.
“Our plan now is to engage with the authorities to better understand their priorities, how to address their vulnerabilities, and then move forward to determine the best ways we can support them through a financing program,” said IMF spokeswoman Julie Kozak during a press conference in Washington.
Kozak noted that Iraq was already suffering from severe financial constraints before the outbreak of the war, adding that the limited non-oil revenue base is putting pressure on the state’s finances.
The Managing Director of the International Monetary Fund, Kristalina Georgieva, revealed during the Fund’s annual meetings in Bangkok earlier this month that Iraq had requested a new support program.
During those meetings, Georgieva praised the resilience of global economic growth despite the wars in Iran and Ukraine, but warned that the effects of conflicts vary greatly, with the most fragile economies suffering severe damage.
Since the outbreak of war in the Middle East on February 28, 2016, with US and Israeli strikes on Iran, Tehran has almost completely restricted maritime traffic through the Strait of Hormuz, insisting that ships must pass through it via a designated route and sometimes targeting those attempting to pass without its coordination. In response, Washington has imposed a blockade on Iranian ports.
The Iraqi economy is heavily dependent on energy exports, most of which pass through this strait.
Iraq was facing severe financial pressures even before the outbreak of war, and the International Monetary Fund predicted this month that its economy would shrink by 16% this year.
Iraq’s last program with the International Monetary Fund ended in 2019, and it entails interest payments to the international institution amounting to about $428 million until 2030.
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