A number of guru’s are making a big deal out of the February 24th deadline for the IMF loan. They are claiming Iraq has to pay back the loan by the 24th, which is incorrect.
Iraq was approved for a Standby Agreement that totaled 2376.80(SDR million) or 3.6 billion(USD) in 2010. (Today’s conversion rate for an SDR is 1 SDR=1.47638 USD). A Standby Agreement is an approved funding that is available to a country. A county can elect to draw/borrow all, part or non of the approved funding. The Standby Agreement is only good for a certain period of time. If a country has not drawn all of the appoved funding within the designated time frame, the Agreement expires.
To date, Iraq has only drawn/borrowed a total of 1069.56 (SDR million) of the 2376.80. Iraq was granted an extension on the Standby Agreement to February 24, 2013. Iraq was given the extra time to decide if they would make any further draws from the balance of the approved funding. If they do not draw the balance of the approved funding by the 24th, the Standby Agreement will expire and they lose access to the balance of the approved funding. In other words, if they want to borrow the rest of the approved funding they have to do it before the 24th. The 24th is not a deadline for repayment of the amount they have borrowed.
A five year payment schedue has already been set up for the 1069.56 that Iraq has already borrowed. The first payment, due in 2013, is for 122.81(SDR million). The biggest payment, 506.30(SDR million) is due in 2014. 426.6(SDR million) in 2015. 37.37(SDR million) in 2016 and .02(SDR million) in 2017.
Iraq was approved for a Standby Agreement that totaled 2376.80(SDR million) or 3.6 billion(USD) in 2010. (Today’s conversion rate for an SDR is 1 SDR=1.47638 USD). A Standby Agreement is an approved funding that is available to a country. A county can elect to draw/borrow all, part or non of the approved funding. The Standby Agreement is only good for a certain period of time. If a country has not drawn all of the appoved funding within the designated time frame, the Agreement expires.
To date, Iraq has only drawn/borrowed a total of 1069.56 (SDR million) of the 2376.80. Iraq was granted an extension on the Standby Agreement to February 24, 2013. Iraq was given the extra time to decide if they would make any further draws from the balance of the approved funding. If they do not draw the balance of the approved funding by the 24th, the Standby Agreement will expire and they lose access to the balance of the approved funding. In other words, if they want to borrow the rest of the approved funding they have to do it before the 24th. The 24th is not a deadline for repayment of the amount they have borrowed.
A five year payment schedue has already been set up for the 1069.56 that Iraq has already borrowed. The first payment, due in 2013, is for 122.81(SDR million). The biggest payment, 506.30(SDR million) is due in 2014. 426.6(SDR million) in 2015. 37.37(SDR million) in 2016 and .02(SDR million) in 2017.