Business · Economy · 1 hr ago
IMF discusses new Iraq support and aims to complete Egypt review by mid-December
The IMF is pursuing three economic tracks as the war with Iran disrupts energy markets and adds pressure to government budgets.
It has begun talking with Iraq about a new financing program to assess the country’s needs and how it could help.
Iraq relies heavily on oil exports shipped through the Strait of Hormuz, leaving its finances exposed to disruptions in the waterway.
The IMF expects Iraq’s economy to shrink by 16% this year, reflecting the effects of the war and disrupted energy exports.
In Egypt, the IMF wants to reach a staff-level agreement on the final review of its current program and send it to the board for approval before mid-December.
The discussions will focus on tight monetary policy, public-finance discipline and reforms intended to support growth led by private investment.
The IMF also says the US Federal Reserve is right to use economic data to guide rate decisions amid continuing uncertainty.
The International Monetary Fund is discussing a new financing programme with Iraqi authorities as the country faces severe financing pressures.
The IMF aims to reach a staff-level agreement on the final review of Egypt’s programme before mid-December.
The Egypt review is due to be sent to the IMF’s executive board for approval before the programme ends on December 15.
The IMF says discussions with Egypt will focus on tight monetary policy, fiscal discipline and structural reforms.
The IMF has forecast that Iraq’s economy will contract by 16 per cent this year.
- Who
- The International Monetary Fund, Iraqi authorities and the Egyptian authorities.
- What
- The IMF is preparing discussions on a new programme for Iraq and aims to complete the final review of Egypt’s existing programme.
- When
- The IMF aims to reach a staff-level agreement on Egypt before mid-December. The programme ends on December 15.
- Where
- Iraq and Egypt; the IMF’s briefing took place in Washington.
- Why
- Iraq faces severe financing constraints and disruption to energy exports. The Egypt review is intended to complete the country’s existing IMF programme.
This story does not have two clearly opposing sides.
Iraq’s last of its three most recent programmes with the IMF ended.
Kristalina Georgieva said Iraq had asked the IMF to prepare a new programme.
The IMF forecast that Iraq’s economy would contract by 16 per cent this year.
The IMF said it was in contact with Iraqi authorities to prepare for a new financing programme.
The IMF aims to reach a staff-level agreement on Egypt’s final programme review and send it to the executive board for approval.
Egypt’s existing IMF programme is due to end.
- Iraq forecast
- 16 per cent economic contraction in 2026
- Iraq’s last programme
- Ended in 2019
- Iraq interest payments
- About $428 million due to the IMF by 2030
- Egypt review target
- Before mid-December 2026
- Egypt programme end
- December 15, 2026
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What people are saying
we intend to work with the Iraqi authorities to better understand their priorities, identify how to address vulnerabilities in the economy, and then agree on the best way the Fund can provide support through a new programme
Iraq is facing severe financing constraints