IMF begins outreach to Iraq to prepare new support program
The IMF says it is engaging with Iraqi authorities to understand their priorities and vulnerabilities in the economy as a prelude to a new support program requested by Baghdad to address the fallout from the war.
The International Monetary Fund said on Thursday, 29 October 2026, that it is engaging with Iraqi authorities to prepare a new support program for Iraq, after Baghdad asked the Fund for help in managing the economic fallout from the war in the region, the Fund said during its regular press briefing in Washington.
Understanding priorities before defining the program
IMF spokeswoman Julie Kozack said the Fund's plan at this stage is to engage with Iraqi authorities to better understand their priorities, how to address weaknesses in the economy, and then proceed to determine the best ways to support them through a program, expressing the Fund's hope to strengthen its partnership with the Iraqi government.
The Fund has not yet disclosed the type of program, the size of financing, its conditions, or the timetable for its approval.
An economy dependent on oil and exports that pass through Hormuz
Iraq's economy relies almost entirely on oil exports, most of which pass through the Strait of Hormuz, and it has been severely harmed by the near-total closure of the strait since the outbreak of the war on Iran in late February, at a time when Iraq was already facing financial pressures prior to the war.
Iraqi request and a pledge from the Fund's managing director
IMF Managing Director Kristalina Georgieva revealed, at the conclusion of the Fund's annual meetings in Bangkok on 17 October, that Iraqi authorities had requested a program from the Fund, saying the Fund would support Iraq "strongly" with financing and policy advice.
The last program between Iraq and the IMF dates back to 2019.
Read also: IMF warns of a 1.3% contraction in the region's output due to the war
