Al-Hashemi: Iraq Moves Toward IMF Borrowing Amid Concerns Over Financing Conditions
Economic expert Ziyad Al-Hashemi said on Saturday that Iraq had applied for loans from the International Monetary Fund (IMF), noting that negotiations between the two sides had begun, with expectations that Baghdad would receive financial assistance from the Fund.
In a post on Facebook, Al-Hashemi said information from IMF sources indicated that discussions with Iraqi officials were already underway, adding that the Fund was expected to strongly support Iraq’s efforts to secure financing.
He said the move had raised questions about the government’s fiscal policy, particularly its decision to devalue the Iraqi dinar. The government had previously justified the exchange-rate adjustment as a way to avoid more difficult measures, including external borrowing.
Al-Hashemi argued that seeking IMF loans appeared inconsistent with those earlier justifications and raised concerns about the management of public finances. He called on the government to explain the reasons behind its borrowing plans and provide the public with greater transparency, especially following the recent reduction in the dinar’s value.
He warned that potential financing could come with conditions aimed at controlling public expenditure and increasing government revenues. Such requirements could also involve reducing subsidies in several sectors, particularly fuel and electricity, which account for significant public spending.
The economist added that the financial consequences of borrowing could emerge gradually after the government receives its initial disbursements. He noted that the IMF’s current recommendations could become binding obligations if a formal agreement is reached, requiring the government to implement specific measures in the coming period.
Earlier on Saturday, IMF Managing Director Kristalina Georgieva announced that the Fund intended to provide strong support to Iraq through its requested lending program, stressing that the assistance would include both financial resources and economic policy support.
