IMF Pledges Support as Iraq Seeks Emergency Financial Assistance

Iraq has approached the International Monetary Fund (IMF) for a new financial program as the US-Israel war with Iran disrupts oil exports and squeezes government revenue. IMF Managing Director Kristalina Georgieva pledged “firm” support, including financing and policy assistance, though the size and terms of the program remain undecided.

The IMF forecasts Iraq’s economy will contract 16% in 2026 before rebounding 19% in 2027. The crisis has also prompted Iraq to devalue its currency by 13% against the dollar as disruptions in the Strait of Hormuz hit oil shipments. The IMF is simultaneously advancing discussions on potential support for Lebanon, highlighting mounting economic pressures across the Middle East.
(@FirstSquaw)