Iraq secures total $12b international loan

ERBIL, Kurdistan Region (Kurdistan24) – On Friday, the leaders of G7 decided to allocate over 3.6 billion USD to Iraq as a financial assistance to the country to help Iraq recover from the current economic crisis.

Following the drop of oil prices internationally, Iraq and the Kurdistan Region faced a severe financial and economic crisis since mid-2014 as the country almost completely depended on oil revenue.

On Friday, after the two days meetings of the G7 leaders, they decided to mobilize more than 3.6 billion USD financial assistance to Iraq. The group emphasized that the assistance should be for all parts of Iraq, including the Kurdistan Region.

“We commit our continued support for the unity, sovereignty and territorial integrity of Iraq and the Iraqi people, as well as the Iraqi government’s efforts to accelerate political and economic reforms and enhance national reconciliation,” read the G7 declaration.

The group expressed their support to Iraqi security forces in the battle against the Islamic State (IS) that has controlled large swaths of territory in northern Iraq. They also called on the international community to continue supporting the government of Iraq and extend humanitarian aid to the displaced people as well as stabilize and secure the liberated areas from jihadists.

Moreover, the Islamic Development Bank (IDB) recently agreed to provide $3 billion loans to the federal government of Iraq to help the country cope with the sharp decline in oil revenue, said the Central Bank of Iraq spokesman in Baghdad on Thursday.

Additionally, the Finance Minister of Iraq Hoshyar Zebari announced on May 19 that the International Monetary Fund (IMF) has agreed to give $5.4 billion loans to Iraq for three years.

Iraq is not only suffering from a financial crisis but also a political turmoil and IS has drained a substantial portion of the country’s revenue.

Reporting by Mewan Dolamari
Editing by Ava Homa