The Iraqi government is reportedly seeking $ 6bn in debt, with another possibility of $ 4bn, according to the finance minister.

The IMF said that Iraq has requested emergency assistance from the International Monetary Fund (IMF) and negotiations between the two sides are continuing.

Iraqi Finance Minister Ali Allawi previously told the Bloomberg news agency that Iraq was negotiating with the IMF for a $ 6bn loan package.

A representative of the IMF said in an email late Sunday, “Iraqi officials have requested emergency assistance from the IMF under the Rapid Financing Instrument, and also intend to request a long-term arrangement with the fund.” Statement.

“Officials’ request for emergency assistance is under discussion.”

The IMF’s Rapid Financing Instrument (RFI) provides quick financial support, which is available to all member states to meet the need for an immediate balance-of-payment.

According to the IMF website, financial assistance under the RFI is provided without the need for a full program or review.

oil pressure

Alavi said on Sunday that Iraq could demand an additional $ 4bn in low-cost debt through another program involving government reforms.

Iraq devalued its dinar currency last month after a drop in global oil prices, which is an important source of Iraq’s financial resources.

Allawi told Bloomberg that Iraq also planned other types of funding to help plug budget gaps. After the spending plan is approved, the government will move to issue $ 5bn in domestic bonds to expand its financial base.

Members of the Organization of Petroleum Exporting Countries (OPEC) have only a small manufacturing base in the economy and almost all goods are imported in US dollars. The decline in the value of the dinar makes those imports more expensive.