Which Countries Owe the IMF the Most in 2025 — And Why Iraq Isn’t One of Them

 

What Is the IMF?

The International Monetary Fund (IMF) is a global group made up of nearly every country in the world. It was founded in 1944 after World War II, when leaders wanted a system to stabilize the world economy. 

The IMF helps countries when they run into big money problems—like when they can’t pay their bills, their economy is collapsing, or they face huge debt. It gives loans and also advice on how to fix economic problems. 

Where Does the IMF Get Its Money?

To lend money, the IMF needs a lot of funding. Here’s how it gets it:

1. Member Quotas
   Each country in the IMF pays what’s called a “quota” (kind of like a membership fee). Bigger, richer economies pay more. That quota determines how much a country can borrow and its voting power. 

2. Pooling resources (creditor countries)
   The IMF uses the money pooled from member quotas. Wealthier countries often act as creditors, making extra funds available for IMF lending. 

3. Borrowing agreements & backup lending mechanisms
   In times of crisis, the IMF may also borrow additional funds from members or use special arrangements called “New Arrangements to Borrow” (NAB) to expand its capacity. 

Because of these sources, the IMF can maintain a large lending fund—roughly $1 trillion in capacity. (Al Jazeera)

Which Countries Owe the Most to the IMF in 2025?

In 2025, 86 countries collectively owe the IMF about SDR 118.9 billion (which is roughly US$162 billion) in loans. (Al Jazeera)

The top 10 countries that owe the most (in SDRs) include (in ranked order) the biggest ones. In 2025, the list begins like this:

1. Argentina — SDR 41.8 billion (≈ US$57 billion) 

2. Ukraine — SDR 10.4 billion (≈ US$14 billion)

3. Egypt — SDR 6.9 billion (≈ US$9 billion) 

These top three alone make up almost half of the total debt owed to the IMF. 
The top 10 nations account for about 73 % of the total outstanding credit owed. 

Why Do Those Top Three Owe So Much?

Here are simplified reasons for the big debts:

• Argentina
  Argentina has a long history of economic trouble: high inflation, currency crashes, large government deficits (spending more than it collects in taxes), and repeated financial crises. Because of that, it has had to borrow many times, making it the IMF’s largest debtor. (Al Jazeera)

• Ukraine
  Ukraine’s economy has been severely impacted by war and conflict. Its infrastructure, revenues, and stability have suffered, so it has needed large external support. The IMF has approved multi-year programs to help it rebuild and cover costs. (Al Jazeera)

• Egypt
  Egypt faces challenges with high public debt, persistent budget deficits, inflation, and weak foreign currency reserves. To stabilize its economy and maintain necessary services, it turns to the IMF for support. (Al Jazeera)

The Really Good News for IQD Investors: Iraq Is Not Among the Top IMF Debtors

It’s very important to stress: Iraq is not listed among the countries that owe the most to the IMF in 2025. The Al Jazeera article, which reports recent data, does not include Iraq in its top debtor list. (Al Jazeera)

Iraq is not one of the IMF’s top debtors because:

• Its old debts were forgiven or restructured.

• It earns massive oil revenue each year.

• It works with the IMF as a partner for advice, not as a borrower.

• It funds most of its budget internally, not through IMF loans.

• It maintains healthy reserves and growing foreign investment.

So, while countries like Argentina, Ukraine, and Egypt rely on IMF loans for stability, Iraq’s situation is very different — it’s using its natural resources and policy reforms to rebuild financial independence.

This information alone, should be an indicator of how investing in Iraq might be a good thing. 

Why This Info Matters & How to Think About It

• A country owing a lot to the IMF does not necessarily mean it is “doomed” — sometimes large borrowing reflects an effort to recover from crises.

• The IMF’s loans often come with conditions (like cutting spending, raising taxes, restructuring debt). That’s what makes them controversial sometimes.

• Watching which countries owe the most tells you which economies are under stress or receiving the most external aid.

• Always check reputable, current sources (IMF, international news) to see whether data has changed.

Written by Sandy Ingram
This article is by Sandy Ingram, publisher of the Edu Matrix YouTube Channel and the Publisher of the Editor of this Blog.  Though she is retired, she has been registered with the IRS since 1999.