Iraq seeking assistance from IMF and World Bank after oil income slashed by Iran war |
WASHINGTON/BAGHDAD, Iraq (Reuters) — Iraqi officials have approached the International Monetary Fund about securing financial assistance as a result of the conflict in the Middle East, a source close to the IMF and an Iraqi government official said on Thursday.
Initial conversations took place during last month’s spring meetings of the IMF and World Bank in Washington, and discussions are ongoing about how much funding Iraq would need and how any loan would be structured, the source close to the IMF said.
An Iraqi official advising on financial policy said Iraq is in preliminary discussions with the IMF and World Bank over a loan to finance the country’s budget, given a sharp revenue shortfall caused by halted oil exports following the Iran war and the closure of the Strait of Hormuz.
The official said the talks were expected to be finalized once a new government is in place.
The war that began on February 28 with a massive US-Israeli bombing campaign against Iran and triggered Tehran’s closure of the Strait of Hormuz has rocked the entire Middle East, wreaking damage on infrastructure and........