IMF signs off on fresh aid for Iraq

BAGHDAD, July 8, 2016 – The IMF late on Thursday signed off on a new standby agreement for Iraq. Under the programme, the country will receive USD 5.34 billion over a period of three years, with USD 634 million available for immediate disbursement.

Heavily reliant on oil exports for its revenue, Iraq has been hit hard by the drop in oil prices. In January, the country sold 101.8 million barrels at USD 22.2 per barrel, earning USD 2.61 billion.

The costly war against the Islamic State has also put a strain on the country’s budget, yet “the policies put in place by the authorities to deal with this double shock are appropriate,” IMF deputy director Min Zhu said in a statement.

While the oil prices have recovered from the lows seen at the beginning of the year – in June, Iraq exported 95.2 million barrels at USD 40.4 per barrel, which brought in USD 3.84 billion – the country nonetheless accumulated arrears to the international oil companies, something the IMF labelled as “unfortunate.”

For more features and news on the oil and gas industry in Iraq, click here.

Read our latest insights on: