IMF program pushes Iraq to pay oil companies
To unlock $15 billion in loans, Iraq needs to pay off debts to IOCs – part of a program designed to improve fiscal discipline and raise the confidence of international investors and lenders.
Iraqi Prime Minister Haider al-Abadi speaking at the World Economic Forum annual meeting on Jan. 23, 2015 in Davos. (FABRICE COFFRINI/AFP/Getty Images)
Iraq's recent agreement with the International Monetary Fund (IMF) is giving oil companies a boost in their quest to secure timely payments from the government.
The IMF's standby agreement, announced in late May, could provide Iraq with up to $5.4 billion in loans over the next three years and unlock nearly $10 billion more in international financing. But there are several conditions - including a stipulation that Iraq must pay off all debts to international oil companies (IOCs) by the end of 2016.
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