Nearly $8 billion
IMF loans fully repaid, says government advisor
BAGHDAD — Iraq has fully repaid its debts to the International Monetary Fund (IMF), totaling nearly $8 billion since 2003, announced a senior advisor to Prime Minister Mohammed Shia Al-Sudani on Thursday.
Mazhar Mohammed Salih, Al-Sudani’s financial and economic advisor, revealed to the Iraqi News Agency that the IMF had provided loans to Iraq since 2003 to support its economic and financial conditions.
“The total value of loans and financial assistance granted by the IMF to Iraq amounted to several billion dollars, not exceeding $7 to $8 billion, and has been fully repaid. The focus when granting these loans was on implementing programs aimed at supporting macroeconomic stability and necessary financial reforms,” Salih stated.
He highlighted that Iraq had received multiple financing programs from the IMF between 2003 and 2021, including emergency loans and relatively long-term financial assistance.
Salih mentioned that Iraq requested a $6 billion emergency loan from the IMF in 2021, which did not materialize due to its lack of association with one of the IMF’s programs at that time.
Salih emphasized the IMF’s support to Iraq in the early years after the overthrow of the former Ba’ath regime in 2003 through various programs such as the Stand-By Arrangement and the Rapid Financing Instrument.
In 2016, Iraq received approval for a Stand-By Arrangement worth $5.34 billion to support economic reforms, of which two-thirds were disbursed and fully repaid within five years. The Stand-By Arrangement, established in 1952, provides financial aid to member states experiencing financial difficulties due to crises, while the Rapid Financing Instrument offers prompt assistance to countries facing urgent balance of payments needs.
In its 2024 Article IV consultation report on Iraq, released today, the IMF highlighted significant economic improvements driven by political stability and fiscal expansion. The report noted a decline in inflation to 4 percent by the end of 2023, attributed to lower global food prices. It anticipated continued economic recovery supported by policy adjustments led by the Central Bank of Iraq to reduce fiscal and external vulnerabilities.
However, the IMF warned that Iraq still faces significant challenges, including potential impacts from lower oil prices and fiscal imbalances, emphasizing the need for structural reforms to sustain economic growth.
