Iraq seeking $6bn IMF loan to protect foreign reserves, reduce deficit: Bloomberg

FILE: Iraqi dinars stacked at a teller's window in a Najaf bank (AFP/FILE)

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SULAIMANI — Iraq is currently seeking a $6 billion loan facilitated by the International Monetary Fund (IMF) in order to reduce a predicted record budget deficit, according to Minister of Finance Ali Allawi.

First reported by Bloomberg, the loan would help to reduce the country’s 71 trillion Iraqi dinar ($49 billion) deficit included in the draft 2021 Federal Budget Law currently under consideration by the Council of Representatives.

One third of the $6 billion would come from an IMF fund to bolster economies affected by the coronavirus pandemic, with the other two-thirds coming from a program designed to encourage government reform.

According to Bloomberg, the IMF loan would help stem the depletion of Iraq’s dollar-denominated foreign reserves.

(NRT Digital Media)