Iraq’s economic and fiscal crises, which came to the forefront this year following the onset of the coronavirus pandemic, were bound to happen at some point. What corona and the ensuing drop in oil prices and declining demand for oil did is accelerate the timing, according to the recently released Iraqi government white paper, a report of the Emergency Cell for Financial Reform. What the paper doesn’t predict is that…
The International Monetary Fund announced in July that it has approved a three-year, $5.34 billion loan for Iraq under the Stand-By Arrangement facility, which it said was focused on “implementing economic and financial policies to help the country cope with lower oil prices and ensure debt sustainability.” The promised financial assistance was made conditional on—among other things—Baghdad settling all debts to international oil companies (IOCs) without adding new debts. To satisfy that…
