The International Monetary Fund (IMF) has backed a new $685m (£395m) loan for Iraq, in a move seen as an endorsement of its economic reforms. The loan represents the IMF's seal of approval that the Iraq government is taking the correct fiscal measures to mend its war-ravaged economy.It will also encourage funding from other countries hoping to take part in Iraq's reconstruction...
...The IMF's agreement is regarded as a crucial step to help Iraq borrow money from foreign investors, and clears the way for wealthy creditor countries to begin implementing a debt relief programme for Iraq.
One group of creditor countries - the 19-member the Paris Club - has been waiting for the IMF's seal of approval before implementing its own proposed 80% reduction in the $38.9bn debt owed to them by Iraq...