Iraq seeks IMF loan over 2027 deficit
Iraq faces significant financial challenges that require borrowing from the International Monetary Fund (IMF) potentially amounting to up to $5.4 billion, due to the 2027 budget deficit estimated at around 43 trillion dinars. This borrowing necessitates implementing economic reforms, including reducing expenditure, possibly abolishing the ration card, and increasing electricity collection, with an anticipated interest rate of about 1.25%. The need for this financing arises from the decline in foreign reserves to approximately $75 billion, rising public expenses, limited domestic funding sources, and a deficit in banking transfers. In the future, Iraq may turn to other financial institutions to cover the financial gap, ensuring the funding of its growing budget needs.
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