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.
IMF program pushes Iraq to pay oil companies
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.

This content is for registered users. Please login to continue.
If you are not a registered user, you may purchase a subscription or sign up for a free trial.