IMF may offer Major Loan to Iraq

By John Lee.

The International Monetary Fund (IMF) may provide a large loan to Iraq to help stabilize the country’s finances, a senior IMF official has told Reuters.

Masood Ahmed (pictured), Director of the IMF’s Middle East and Central Asia Department, said an IMF team will discuss with Iraqi officials early next month how to create a ‘Staff-Monitored Programme’ for Baghdad – an arrangement under which the Fund would monitor Iraq’s economic policies.

Ahmed said the new IMF loan would be a “multiple” of the $1.24 billion in emergency funding which the IMF agreed to provide in July this year.

Baghdad recently abandoned a plan to issue billions of dollars of international bonds because the yield that investors were demanding was too high.

(Source: Reuters)

One Response to IMF may offer Major Loan to Iraq