Global financial stability is under increasing strain as the International Monetary Fund (IMF) reports growing demand for emergency financial assistance from multiple member states, including Iraq.
According to IMF officials, discussions with Iraqi authorities have focused on possible financial support as the country faces a sharp revenue shortfall driven by disruptions to oil exports linked to the ongoing Middle East conflict and the closure of the Strait of Hormuz.
The IMF said initial talks began during recent spring meetings in Washington involving the IMF and World Bank, with further negotiations underway on potential loan size and structure. Iraq is also in early consultations with the World Bank as it seeks ways to stabilise its national budget.
The crisis comes after severe disruption to regional oil flows following the escalation of conflict involving Iran, which has significantly reduced Iraq’s export capacity. As oil accounts for nearly all of Iraq’s government revenue, the shock has placed major pressure on public finances.
IMF spokesperson Julie Kozack said the Fund is working with international partners to assess the broader economic fallout across affected countries. She noted that several members are currently engaging the IMF for policy advice and financial support.
IMF Managing Director Kristalina Georgieva has previously warned that global demand for emergency funding could reach between $20 billion and $50 billion as at least a dozen countries face spillover effects from geopolitical tensions.
Iraq, which holds some of the world’s largest proven oil reserves, last received IMF support through a standby arrangement that expired in 2019 and still owes more than $2 billion to the institution.