Iraq wants no more long-term World Bank loans

Baghdad (IraqiNews.com) Iraq has told the World Bank it needs help creating jobs rather than receiving long-term loans, according to a statement by the prime minister’s office.

Prime Minister Haider al-Abadi told a delegation from the international organization that his government does not want to bind Iraqi by long-term loans, but rather to create work opportunities that help the population cope with the financial crisis, according to the statement.

Abadi met the delegation as part of a visit to the United States which began Sunday and saw him meeting with U.S. President Donald J. Trump.

The statement quoted the bank’s delegation saying it would provide support Iraq in that respect.

Falling world petroleum prices and the continuous war against Islamic State militants has thrust Iraqi into a financial crisis, prompting the country to reach out to local and foreign lenders.

In December, the World Bank approved a 1.5 billion dollar loan to Iraq to cope with falling oil prices and embolden the country in its war against IS. That sum raised the total of financial aid from the organization to nearly USD3.4 billion. The WB had approved two loans, worth USD1.2 billion and USD350 million, in 2015, one year after IS took over nearly a third of Iraqi territories.