World Bank issues $1.2 billion loan to Iraq

World Bank to lend Iraq $1.2 billion to help offset low oil prices, military expenses related to fight against DAESH

Photo by: Reuters
Photo by: Reuters

One hundred dollar notes are seen in this photo.

The World Bank announced on Thursday it would lend Iraq $1.2 billion as an emergency aid to help with the negative effect of low oil prices and the economic impact of its fight against DAESH terror organization.

Ferid Belhaj, World Bank Director for the Middle East, said the loan should be available to Iraq by the end of this year.  

Speaking to Reuters in a telephone interview, he said, "Iraq falling into chaos means an even more chaotic the Middle East. At this particular juncture, nobody wants that. We have enough chaos about."

Baghdad heavily depends on oil income, which has dropped with low the oil prices.

Meanwhile, Iraq has increased its military expense in its fight against DAESH, which has killed and wounded thousands, displaced people and captured large swathes of land.

Ferid Belhaj said it was also a very important opportunity for Iraq to turn a new page for reforms such as management of the energy sector and Iraqi fiscal discipline.

"When tomorrow the prices of oil go back to acceptable levels for the Iraqis, they should not lose the incentive to continue with those reforms ... We are really setting our foot in the door for these reforms," he added.

TRTWorld and agencies