IMF to accelerate talks with Iraq and Lebanon as Mena support grows

The International Monetary Fund (IMF) is set to expedite talks with Iraq and Lebanon as part of its strategy to assist vulnerable nations in the Middle East and North Africa, according to its managing director, Kristalina Georgieva. Iraq had approached the Washington-based fund for a potential program, and Georgieva stated that they would provide Iraq with both financial aid and policy support.

Georgieva also highlighted ongoing discussions with Lebanese authorities, noting that significant progress has been made towards an IMF program for Lebanon. Iraq is currently facing one of its most severe economic and security situations since the Iran war erupted in February. Prime Minister Ali Al Zaidi recently appealed to the world to invest in Iraq during a speech at the UN General Assembly.

Lebanon, heavily reliant on imports, is particularly vulnerable to disruptions like those caused by the regional war. The country is also still recovering from the worst economic crisis in modern history, with the World Bank projecting a 6.4% contraction in Lebanon's economy in 2026. The IMF plans to assess potential changes to Lebanon's bank resolution law to ensure they align with international standards.

Georgieva emphasized that programs for Iraq and Lebanon would be crucial in mitigating the impact of the ongoing crisis. She also acknowledged the efforts of Gulf governments, whose reforms have helped cushion the impact of the crisis.