Iraq in Discussions with IMF

By John Lee.

Iraqi Finance Minister Hoshiyar Zebari has confirmed that Iraq is discussing its financial situation with the International Monetary Fund (IMF).

Speaking on the sidelines of a conference in Kuwait on Tuesday, Zebari did not elaborate on what aid might be provided, but according to the report from Reuters he has previously said Iraq plans to raise $1.8 billion this year by using Iraq's Special Drawing Rights at the IMF, which would be different than an emergency loan programme.

He said "Iraq is not bankrupt - we have plenty of assets we can use ... [But] we have a serious cash flow problem," adding that Iraq's financial squeeze was "very serious".

(Source: Reuters)