Iran seeks Financial Help from IMF first time since 1962 to fight against Corona Virus

For the first time since 1962, Iran is seeking the help of International Monetary Fund. Since Islamic Revolution Iran stopped getting help from IMF.

IMF and Corona Virus

Earlier, this month, IMF allocated emergency funds to middle income countries. The international banking institution, allocated 50 billion USD to fund middle-income and poor countries. Also, it allocated 10 billion USD to low income countries.

Iran

Iran has been facing economic challenges due to US sanctions. After US had withdrawn from JCPOA (Joint Comprehensive Plan of Action), it had imposed sanctions on Iran.

Iran-US relations

The countries had cordial relations till World War II. However, as the arms race began between US and USSR, US began sensing USSR’s backing towards Iran. In 1953, US and British forces ousted democratically elected Iranian PM Mohammad Mossadeq. In 1979, during the Iranian Revolution, the US backed Mohammed Reza Pahlevi was forced to leave the country.

In 2000, Iran began developing nuclear weapons and the United Nations imposed several rounds of sanctions. In 2018, US abandoned nuclear deal JCPOA. In 2020, the Iran top commander Qasem Soleimani was killed by a US drone.

Month: Current Affairs - March, 2020