Iran urges IMF to sanction its $5 billion emergency loan as coronavirus cases increase

Iran on April 8 urged the International Monetary Fund to sanction the $5 billion emergency loan that it has requested to combat the coronavirus pandemic. The number of COVID-19 cases in the nation are on a rise with the Shiite nation reporting 64,586 infected people on April 8. The Iranian government had announced that they had asked for a loan from the IMF on March 12.

IMF has repeatedly shown promptness to help needy countries battling the pandemic. The economic organisation on its website had previously stated that a "Rapid Financial Instrument is available to all member countries facing an urgent balance of payments need". However, Iran has yet not been issued a loan due to a ‘stand by’ credit issued between 1960 -62, international media reported citing IMF figures.

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Speaking at Cabinet meeting, country’s President Hassan Rouhani reportedly asked all the international leaders to fulfil their duties. Later, speaking in a televised address he added that Iran was an IMF member and that if there was going to be any kind of discrimination between Iran and other nations while issuing loans, “neither us nor world opinion will tolerate it." He asserted that if IMF does not act on their duties in this difficult situation, the world will judge them in a different way. 

IMF postpones review of Bailout Package to Pakistan 

In another news, the IMF has postponed the second review of its USD 6 billion bailout package for cash-strapped Pakistan, citing a delay by the country in implementing the agreed actions, reports said on Tuesday. The deal is the 22nd bailout package since Pakistan became a member of the IMF in 1950. The International Monetary Fund Executive Board approved a three-year, USD 6 billion loan package for Pakistan in July last year to rein in mounting debts and stave off a looming balance of payments crisis, in exchange for tough austerity measures. Pakistan approached the IMF in August 2018 for a bailout package after Prime Minister Imran Khan's government took over. Despite loans from China, Saudi Arabia and the UAE, Prime Minister Khan's government was forced to turn to the IMF due to mounting economic problems.

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