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IMF deems Iraq stable, grants $685 million loan (Patrice Hill, December 24, 2005, THE WASHINGTON TIMES)

The International Monetary Fund yesterday approved a new $685 million loan for Iraq, saying the country has stabilized its economy despite continued violent conflict.

The loan, the second from the IMF after a $436 million emergency loan in 2004, reflects the lending agency's judgment that Iraq's government is doing its best to revive the war-torn economy. The loan clears the way for major debt relief from Western nations.

"The Iraqi authorities were successful in promoting macroeconomic stability in 2005, despite the extremely difficult security environment," said IMF Deputy Managing Director Takatoshi Kato. He noted growth slowed in 2005 after a strong spurt in 2004.

"The medium-term outlook for Iraq is favorable, but subject to many risks," he said.