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FINANCIAL NEWS
Iraq to receive $250m loan from World Bank
27 Feb 2010
(MENAFN) The World Bank has approved the first of two $250 million loans for Iraq to help plug a large financing gap caused by the sharp drop in global oil prices since 2008, Reuters reported.
The shortfall of close to $5 billion through to the end of 2011 has posed challenges for rebuilding the country from years of conflict and just when violence has started to subside.
Iraq relies on oil exports for as much as 90 percent of its revenues, and lower oil prices mean it will not have enough resources to meet reconstruction needs.
The World Bank loan comes a day after the International Monetary Fund approved $3.6 billion in funding for Iraq to help the economy with the slump in oil prices and political uncertainty in the lead-up to March 7 parliamentary elections.
The Bank has 20 active projects in Iraq, including road rehabilitation, water supply, energy, health and education, Most are financed by a donor trust fund managed by the institution.
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