Iraq will receive $5.4US billion over the next three years from the International Monetary Fund we learned in an announcement Thursday.
Since Iraq has been severely affected by the drop in oil prices, must comply with various stipulations while considering the agreement in order to reduce public expenditure as well.
Isaid Christian Josz who is head of the IMF mission in Iraq spoke at a news conference in Amman, Jordan along with the head of the central bank of Iraq and Iraq's finance minister. A standard of 1.5% interest will be maintained according to the bank.
Iraq's Finance Minister Hoshyar Zebari added that $2US billion in international bonds will be issued this year adding that last year they were not issued due to higher than average interest rates.
Since the global oil price slump, Iraq's economy has not been able to recover since the national budget is largely reliant on oil revenue. The war against extremists has also cut into the budget, using public funds desperately needed elsewhere. Iraq's 2016 budget of $90US billion has a $20.5 US billion deficit which will be relieved somewhat by the $5.4US billion loan from the IMF.
In the last year, Iraq has received $833US million from the IMF and $1.7US million from the World Bank.