Iraq is negotiating with the International Monetary Fund (IMF) to obtain loans worth $6 billion, an Iraqi government official has said.

Mudher Muhammed Saleh, the financial advisor to the Iraqi government, told Zawya Projects that a part of the loan would be provided under IMF's Rapid Financing Instrument to address the large deficit in Iraq's current account.

Saleh added that loans have been sought in two tranches of $2 billion and $4 billion, with the latter linked to economic reform program, details of which "will become clear after the agreement."

He said the loans will be treated as precautionary, which means Iraq will withdraw according to its needs.

Saleh also pointed out that Iraq has concluded with the IMF five agreements after 2003, three of which are for credit readiness, one post-conflict, and one Staff-Monitored Programme.

(Reporting by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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