The effectiveness of the International Monetary Fund in Settlement of Iraq's foreign debt after 2003

Abstract

As an oil-producing country that witnessed a great economic recovery, Iraq managed its internal conditions away from foreign loans in the 1970s. But the Iraqi military war with Iran in 1980 exhausted the Iraqi economy and made it fully devoted to serving the war during that period. Due to the huge size of military expenditures, these local resources were unable to cover the military expenditures completely, which prompted Iraq to resort to external loans to finance its increasing military expenditures, which Iraq was unable to repay at the due time because the military wars and the economic blockade imposed on Iraq after the invasion of Kuwait in 1990. This invasion led to the accumulation of loans after 2003 when funders began demanding the repay of their money after lifting the economic blockade on Iraq under Security Council Resolution No. (1483/2003), which obligated Iraq to deal positively with the International Monetary Fund in order to settle its foreign debts.