Iraq, U.S. sign 1U$ bn sovereign loan
Undersecretary of the Iraqi finance ministry, Fadel Nabi.
On the sidelines of the signature event, undersecretary of Iraq’s finance ministry, Fadel Nabi, said the move “represents an initial step towards accessing world capital markets on a greater scale after legal requirements had been fulfilled and specific policies taken into consideration.”
Through the guarantee, the U.S. ensures the repayment of the borrowed amount, according to Nabi, plus interests through an Iraqi government-issued bond.
“Iraq is struggling to fulfill its financial commitments while securing basic services for its citizens,” the official stated, adding that the agreed loan shall enable the government to secure resources needed to provide those services, as well as to better focus on its war against Islamic State militants.
“The loan shall also ensure the U.S. continued commitment towards assisting Iraq to achieve victory in its battle against IS, and to realize economic reform,’ Nabi said, adding that the current loan will facilitate obtaining another unguaranteed loan from the U.S. government with the same amount.