Iran Requests $5 Billion in Aid from IMF to Combat Coronavirus

Iran has requested financial support of $5 billion from the International Monetary Fund to combat the coronavirus disease. The governor of the Central Bank of the Islamic Republic of Iran has sent a letter to the head of the International Monetary Fund in this regard.

Abdolnasser Hemmati, governor of the Central Bank of the Islamic Republic of Iran, announced Iran’s formal request to the International Monetary Fund for financial support in combating the coronavirus disease through an Instagram post.

The International Monetary Fund has devised a new financial facility to support and assist countries facing the outbreak of coronavirus disease.

This financial facility is called the “Rapid Financial Instrument.” The International Monetary Fund has allocated a budget of $50 billion to meet the urgent financial needs of countries facing the coronavirus outbreak.

Iran’s official news agency “IRNA” published a report on Thursday, the 22nd of Esfand (March 12), regarding a letter from Abdolnasser Hemmati to the head of the International Monetary Fund.

In a letter addressed to Kristalina Georgieva, the head of the International Monetary Fund, Hemmati requested access to the rapid financial financing tool.

The governor of the Central Bank of the Islamic Republic announced that Iran is requesting financial support of $5 billion from the fund.

It is reported that Hemmati sent this letter on Friday, the 16th of Esfand. The Central Bank claimed that the government needs access to the financial tool provided by the International Monetary Fund to procure medical equipment.

The governor of the Central Bank stated: “The response of the international community and the International Monetary Fund can serve as a good measure to evaluate their claims in helping to control this virus and reduce the suffering of affected people.”

Mohammad Javad Zarif’s Request for Aid

Reuters news agency, in reporting from Dubai, referred to a request by Mohammad Javad Zarif from the International Monetary Fund. The report stated that Iran’s Foreign Minister also requested assistance from this international financial institution through a Twitter post.

Mohammad Javad Zarif wrote in the Twitter post that the head of the International Monetary Fund, Kristalina Georgieva, announced that “countries affected by the COVID-19 virus will be supported through access to the rapid financial instrument. Our Central Bank is requesting rapid access to this financial tool.”

Iran’s Foreign Minister requested that the International Monetary Fund responsibly fulfill its duties.

Oil Price Collapse and Economic Consequences of Coronavirus

Reports related to the coronavirus disease and its effects on Iran’s economy have also been published in the country’s media. Saeed Leylaz, one of economic affairs experts, has described the economic consequences of coronavirus as the most difficult economic period in contemporary Iranian history.

According to Leylaz’s assessment, the economic consequences of coronavirus will actually manifest themselves over the coming months. Based on this economic expert’s evaluation, coronavirus could reduce Iran’s economic growth rate by 2 to 3 percent. The damage caused by this disease to Iran’s economy has been estimated at between $20 to $30 billion.

Leylaz believes that given the reduction in Iran’s crude oil exports, a $20 drop in oil prices will not have a profound impact on Iran’s economy. However, due to the economic consequences of coronavirus, Iran’s non-oil exports have also declined by approximately 20 percent.

Source: DW