IMF claims Iraq is requesting emergency loans due to the fall in oil prices | OakParkFinancial

Iraqi Finance Minister Ali Allawi recently told Bloomberg that Iraq was in talks with the IMF about the possibility of a 6 billion credit package.

“The Iraqi authorities have sought immediate assistance from the IMF under the Rapid Financing Instrument, as well as a longer-term agreement with the Fund in support of planned economic reforms,” an IMF representative stated late on Sunday evening in an email statement.

“The authorities’ plea for emergency aid is still being debated.”

This instrument, known as the Rapid Financing Instrument (RFI) provides immediate financial assistance to member countries who require the urgent balance of payments assistance.

As per the IMF site, the financial assistance in the RFI is provided without the need for an entire program or even an evaluation. If you need money assistance you can get $300 from OakPark.

Oil pressurization

Iraq might seek an additional $4 billion in loans with low interest through another program linked to changes to the government According to Allawi on Sunday.

Iraq decreased the value of its currency dinar this month when the price of oil in the world declined, which is an important source of the country’s financial resources.

According to Allawi Iraq has also devised a variety of sources of financing in order to help with the budget gap. Allawi said that once the spending plan was approved the government will issue $5 billion of domestic bonds in order to expand its financial base.

The economics of the Organization of Petroleum Exporting Countries (OPEC) member is based on a relatively small industrial base. It is also the case that nearly all its imported goods are advertised in US dollars. Imports are more expensive when the value of the dinar falls.

The International Monetary Fund has sought urgent help from Iraq and talks between the two parties are ongoing according to the IMF declared late on Sunday.

Iraqi Finance Minister Ali Allawi previously told Bloomberg News that the country was in talks with the IMF regarding the possibility of a loan package worth $6 billion.

“The Iraqi authorities have sought immediate assistance from the IMF under the Rapid Financing Instrument, as well as a longer-term agreement with the Fund to support planned economic reforms,” an IMF representative stated in an email statement.

“The authorities’ plea for emergency aid is still being debated.”

The IMF’s Rapid Financing Instrument offers immediate financial assistance to member countries that require urgent balance-of-payments assistance.

In accordance with the IMF site, the financial assistance through the RFI is given without the requirement of an entire program or even an evaluation.

According to Allawi Iraq could request an additional $4 billion in loans with low interest under another program that is linked to changes in the government.

Iraq has seen its dinar devalued in the last month as a result of an increase in oil prices around the world which are a significant source of income for the nation.

According to Allawi Iraq also planned different sources of funding to help in addressing the budget deficit. After the approval of the spending plan, Iraq will release $5 billion of domestic bonds to increase its financial base.

It is said that the OPEC member’s economy is characterized by only a small manufacturing base and nearly all goods are purchased at a dollar price.