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Iraq Agrees to Terms for $6 Billion IMF Loan, Ministry Says
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By Anthony DiPaola
June 15 (Bloomberg) -- Iraq, holder of the world’s third- largest oil reserves, agreed to terms enabling it to borrow as much as $6 billion from the International Monetary Fund to make up for revenue shortfalls caused by low crude prices.
The agreement provides for an initial five-year loan with an interest rate as high as 1 percent and an option to extend the borrowing by another 10 years, the Iraqi Finance Ministry said in a statement on its Web site.
Iraqi Finance Minister Bayan Jabr and Central Bank Governor Sinan al-Shabibi reached the agreement with IMF officials in Amman yesterday, the ministry said.
Iraq depends on oil revenue for most of its government budget and is struggling to increase crude production and sales, following six years of conflict and prior economic sanctions. The loan would help the country to rebuild its infrastructure for services such as water and energy should oil revenue prove insufficient, the ministry said.
To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net.
Last Updated: June 15, 2009 02:36 EDT
Iraq Agrees to Terms for $6 Billion IMF Loan, Ministry Says
Share | Email | Print | A A A
By Anthony DiPaola
June 15 (Bloomberg) -- Iraq, holder of the world’s third- largest oil reserves, agreed to terms enabling it to borrow as much as $6 billion from the International Monetary Fund to make up for revenue shortfalls caused by low crude prices.
The agreement provides for an initial five-year loan with an interest rate as high as 1 percent and an option to extend the borrowing by another 10 years, the Iraqi Finance Ministry said in a statement on its Web site.
Iraqi Finance Minister Bayan Jabr and Central Bank Governor Sinan al-Shabibi reached the agreement with IMF officials in Amman yesterday, the ministry said.
Iraq depends on oil revenue for most of its government budget and is struggling to increase crude production and sales, following six years of conflict and prior economic sanctions. The loan would help the country to rebuild its infrastructure for services such as water and energy should oil revenue prove insufficient, the ministry said.
To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net.
Last Updated: June 15, 2009 02:36 EDT