COVID-19 exposes Mullahs’ regime, Iran requests $5b loan from IMF to fight pandemic

Ali Ragab

It seems that the coronavirus pandemic has defeated the Iranian regime, which finally gave up and requested a financial assistance from the International Monetary Fund (IMF) to help fight the virus, which has infected at least 10,000 Iranians.

“Our central bank requested access to this facility immediately,” Foreign Minister Mohammad Javad Zarif added on his Twitter account.

Iran has not received assistance from the IMF since a standby credit issued between 1960 and 1962, according to the fund’s data.

Zarif said the IMF and its board “should adhere to fund’s mandate, stand on right side of history and act responsibly”.

In an Instagram post picked up by state news agency IRNA, central bank governor Abdolnasser Hemmati claimed to have formally requested access to the Rapid Financial Instrument by letter on March 6.

“Given the widespread prevalence of coronavirus in our country and the need to continue to take strong measures to prevent and cure (the disease), and to address its economic impact,” Iran was asking for “about $5 billion” in assistance, Hemmati wrote on his Instagram account.

Tehran on Thursday reported 75 new deaths from COVID-19, the highest single-day toll since the country announced the first deaths from the outbreak on February 19.

It took the overall death toll to 429 out of a total of more than 10,000 confirmed cases of infection.

The Ministry of Health also reported 75 new deaths from the virus in the past 24 hours, bringing the death toll there to 429.

“We have identified 1,075 new confirmed cases of COVID-19 in the last 24 hours, meaning that there are 10,075 infected people in the country. The death toll is 429.” Health Ministry spokesman Kianush Jahanpur told state television.

The fund has said it would make $50 billion available to help member countries deal with the epidemic.

Garbis Iradian, chief economist for Middle East and North Africa at the Institute of International Finance (IIF), told Reuters he had cut his forecast for Iran’s gross domestic product because of the outbreak.

Iradian had been expecting the Iranian economy to contract 2% in 2020 but he’s now forecasting it will shrink 3.1%.

“Let’s say, hypothetically, I managed to import furniture, who is going to buy it inside Iran?,” said Farhad, a 53-year-old businessman from Tehran who buys furniture from China. “All shops are closed. All sectors face the same problem.”

For his part, researcher in Iranian affairs Dr. Mohamed Benaya, told The Reference in an interview that Iran has not made such decision to request a loan from the IMF in a very long time.

He further affirmed that this exposes the extent of the financial crisis that is currently being suffered by the government, thanks to the U.S. sanctions on Tehran.

Coronavirus, according the Dr. Benaya, is being used by the regime as an excuse, however, in reality it is paying the price for its foreign policy and support to terrorism.