The International Monetary Fund announced today, Thursday, that it is preparing a new lending program for Iraq, which has severely suffered economically due to the repercussions of the war with Iran, following the start of talks with the authorities in Baghdad.
IMF spokesperson Julie Kozak said during a press conference in Washington, which was seen by "Video News Agency," that "our plan now is to engage with the authorities to better understand their priorities, how to address their vulnerabilities, and then move forward to identify the best ways we can support them through a financing program."
Kozak noted that Iraq was already facing severe funding constraints before the outbreak of the war, adding that the limited non-oil revenue base is putting pressure on the state's finances.
She continued that "Iraq was essentially struggling with a financial distress before the conflict in the Middle East and the closure of the strait, which caused significant economic repercussions, especially since Iraq relies on a very narrow margin to export its oil now."
IMF Managing Director Kristalina Georgieva revealed during the Fund's annual meetings in Bangkok earlier this month that Iraq 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 more vulnerable economies suffering severe damages.