WASHINGTON – Representatives from Iraq have reached out to the International Monetary Fund requesting emergency financial support due to economic devastation caused by the current Middle East conflict, according to a source with knowledge of IMF operations who spoke Thursday.
Preliminary discussions occurred in April during the annual spring gatherings of the IMF and World Bank held in Washington, with ongoing talks focusing on determining the amount of funding Iraq requires and how any potential loan package would be organized, the source revealed.
The conflict, which started February 28 with an extensive bombing operation by U.S. and Israeli forces targeting Iran and leading to Tehran’s decision to block the Strait of Hormuz, has destabilized the broader Middle East region, causing widespread infrastructure destruction and economic turmoil.
The war has severely impacted Iraq’s economy, with the majority of its petroleum exports – which constitute almost the entirety of government revenue – eliminated due to the blockade of the vital shipping route that previously transported approximately 20 percent of global crude oil supplies.
