The International Monetary Fund (IMF) has begun discussions with Iraqi authorities on a new lending programme, it announced on Thursday. 1 The IMF's latest projections, cited by Agence France-Presse (AFP), have Iraq's economy contracting by 16% in 2026. 1 The report ties that to the war that began on February 28 and the disruption of shipping through the Strait of Hormuz, through which most of Iraq's energy exports traditionally pass. 1
IMF spokesperson Julie Kozack said the fund wants to understand Iraq's priorities and vulnerabilities and to establish what form of support would fit. 1 She said Iraq already faced significant financing constraints before the war, and pointed to its limited non-oil revenue base. 1 IMF Managing Director Kristalina Georgieva had said earlier that Iraq requested a new programme at the annual meetings in Bangkok this month. 1 The report gives no size, terms or timetable for a programme. 1
Iraq's previous IMF programme ended in 2019. 1 The country still owes about $428 million in interest to the fund through 2030. 1
