Iraq Denies Seeking IMF Loan

The Iraqi government officially denied seeking a new loan from the International Monetary Fund, while reaffirming that regular consultations with the global lender remain ongoing as regional geopolitical tensions continue to weigh on the country’s economic outlook.

Mudher Mohammed Saleh said on Saturday that Iraq has not submitted any formal request to borrow from the IMF, stressing that current engagement with the institution is limited to routine financial coordination and technical discussions.

Speaking to the Iraqi News Agency (INA), Saleh noted that Baghdad maintains a long-standing relationship with the IMF dating back to 2003, during which Iraq signed more than five agreements with the Fund, including three standby credit arrangements and several emergency support programs.

He described the IMF as having played a significant role in supporting the Iraqi economy over the past two decades, particularly during periods of fiscal and security instability.

Saleh also warned that Iraq remains among the countries most vulnerable to the ongoing conflict in the region, noting that nearly 85% of Iraqi oil exports pass through the strategically sensitive Strait of Hormuz.

According to the adviser, escalating geopolitical tensions have increased international concerns over the stability of energy supplies and Iraq’s role in maintaining balance within global oil markets.

He added that Iraqi government teams continue to meet IMF representatives twice annually during the institution’s spring and autumn consultations, with discussions increasingly focused on the economic implications of instability across the Middle East.

Saleh recalled that Iraq signed a major standby agreement with the IMF on July 7, 2016, which helped support the country’s state budget during a period of severe financial pressure caused by lower oil prices and security challenges.

However, he emphasized that any future financing agreement would remain solely a sovereign decision by the Iraqi government and that ongoing consultations with the IMF do not imply imminent borrowing plans.

“Iraq would resort to borrowing from the IMF only if necessary,” Saleh said, adding that no official request currently exists and that Baghdad’s immediate priority remains containing the regional conflict and mitigating its geopolitical impact on oil exports.

He further noted that IMF technical assistance remains available to Iraq without the need for a formal financing program, unlike direct loans, which typically require governments to commit to reform agendas tied to fiscal policy, public spending and social sector investment.

Any potential future IMF funding, Saleh said, would likely be linked to broader economic reform measures aimed at supporting the national budget or financing key public sectors such as healthcare and education under internationally supervised implementation frameworks.