US to block Iran’s request to IMF over COVID-19

The US plans to block Iran’s requested $5 billion emergency loan from the International Monetary Fund for funding Tehran says it needs to fight its coronavirus crisis, Report says, citing Wall Street Journal.

According to Trump’s administration, the Iranian government has billion-dollar accounts at its disposal to fight the spread of the virus. If the IMF finances Tehran, it will use the money not to fight the infection, but to help the economy in the part that has been affected by US sanctions, or send funds to Finance its allies in the Middle East.

The Wall Street Journal notes that Washington, as the largest shareholder of the IMF, largely determines whether the Fund will allocate the funds requested by the country. Still, other members of the organization have the opportunity to disagree with the United States if many of them make a different decision, and the number of votes cast for it outweighs the number of votes against.

US officials believe that Iran has billions of dollars in the national development Fund, which is formed from the proceeds from the sale of oil and gas. As the US special representative for Iran, Brian Hook, previously stated in an interview, Tehran should redirect the money it spends on various military operations to fight the coronavirus.