IMF loan to Iraq 2015 and its impact on the relationship between the central government and the KRG

The Iraqi economy has been hit hard by the double shock arising from the ISIS attacks and the sharp drop in global oil prices. Iraq has great difficulties to financing the general budget ,and Iraqi economy faces serious and pressing challenge ,iraq has been hit hard by the conflict with ISIS and the precipitous fall in oil prices. The ongoing armed conflict with ISIS continues to strain the country’s resources and is resulting in new waves of internally displaced people, now reaching over 4 million. Around 10 million people, comprising some 27 percent of the population, are in need of humanitarian assistance. The steep fall in oil prices is causing a large external shock to the balance of payments and budget revenue, which depend predominantly on oil export receipts. So the Iraqi government has concluded an agreement with the International Monetary Fund , the loan gives Iraq a 5.34 billion dollars to cover public funding and post-war rebuilding for reconstruction and economic development . iraq’s