Crisis-hit Iraq reached a deal with the International Monetary Fund Thursday for a $5.4 billion loan that could give donors enough confidence to unlock further financing, a statement said. The three-year stand-by arrangement was reached by the Iraqi government and IMF in Jordan after a week of talks, the monetary institution said. "Under the arrangement, and subject to the approval of the IMF executive board, Iraq could have access to IMF credit amounting to... about $5.4 billion," the statement said.
In a statement issued in Amman, the IMF's Iraq head of mission, Christian Josz, said the deal was justified by the cost of the war on the Islamic State group and the sharp fall in oil prices. "Iraq has been hit hard by the conflict with ISIS (another acronym for IS) and the precipitous fall in oil prices," he said. "To address the urgent balance of payments need, the Iraqi authorities and IMF staff have agreed on a three-year programme of economic and financial policies that will bring spending in line with the lower level of oil prices and ensure debt sustainability," he said. Josz said the loan could start being disbursed in June or July "once agreed prior actions have been implemented".
Comments
Comments are closed.