Japan lend Iraq $500 million



06/09/2017

Economy news Baghdad:

The Japanese Embassy in Baghdad, signed a memorandum with Iraq to provide financial loan capacity 500 million dollars to improve the Government's financial circumstances Iraq and achieve in the areas of administration and finance.

The Embassy said in a press statement obtained by the news, "economy", "held the signing ceremony of the exchange of notes in Baghdad for Japanese ODA loan and the loan aims to improve the harsh financial circumstances and financial reform the country by helping the Iraqi Government in Current reforms in the areas of administration and finance.

"The decline of world oil prices in recent years has resulted in a sharp drop in government revenues, and Iraq was forced to increase defense spending and provide relief to those displaced by the terrorist organization of ISIS operations causing increased government spending, saying that" according to IMF estimates , The budget deficit reached in Iraq years 2016 to 14.1%. In the same year in debt arrived to 66.9% versus GDP. "

She states that "under the circumstances, Japan and other group of seven industrialized countries in the Summit Declaration of the Group's leaders in Asia Shima in May 2016 continued support for Iraq's efforts in addressing the fiscal challenges and the economy through reform".
"

This showed the loan is part of Japan's commitment to provide financial assistance in accordance with the Declaration and up to 500 million dollars," adding that "this loan and financial reform development policy loan (phase 1) which amount to 233 million dollars (25 billion yen) in June 2016.

Stating that "the loan is expected to contribute in the reform programme through improved government spending, energy efficiency and transparency of public companies", stating that "Japanese assistance funded jointly with the World Bank.

Link