IMF approves £391m loan for Iraq

The International Monetary Fund today approved a new £391m (€571.4) loan for Iraq, giving the country a critical endorsement of its economic performance.

The loan, approved by the IMF’s 24-member executive board, represents the lending agency’s seal of approval that the Iraq government is taking the proper approach to reviving its war-torn economy.

The loan should open the door to more funds from countries interested in funding reconstruction.

“The Iraqi authorities were successful in promoting macroeconomic stability in 2005, despite the extremely difficult security environment,” IMF Deputy Managing Director Takatoshi Kato said in a statement announcing the agreement.

The loan will cover a 15-month period and was awarded under regular IMF procedures to provide assistance to nation’s facing economic difficulties.