Economics
Iran’s Central Bank Head Urges IMF to Approve Virus Loan
- U.S. opposes Iran’s application as sanctions are biting hard
- Central bank governor says for IMF the ‘time to act is now’
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Iran’s central bank governor urged the International Monetary Fund to resist U.S. pressure and approve its application for financing to help bridge a 10 billion-euro ($10.9 billion) deficit as the country’s sanctions-hit economy struggles to cope with the coronavirus pandemic.
The Islamic Republic asked the IMF on March 6 for $5 billion in loans to help finance its efforts to combat the disease and support an economy severely weakened by U.S. sanctions that have devastated oil revenues and isolated the state from the global banking system. While the U.S. has said it will block the application, on April 15 the IMF’s director for the Middle East and Central Asia said it’s proceeding with Iran’s request for assistance.