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World Bank lends Iraq $1.2 billion

Amount will be used to reform public sector wage system and reduce spending on energy subsidies

The World Bank approved on Thursday a decision to give Iraq a loan of $1.2 billion to help Baghdad deal with its financial situations, offset the collapsing oil prices and shocks of terrorism.

Ferid Belhaj, a bank official who oversees Iraq, says: “The loan will be available before the end of the year.”

The bank announced in a statement that it has approved the financing project of development policies that aim to control consolidated fiscal situations, provide sustainable energy and enhance the transparency of state-owned enterprises.

This loan raises the financial obligations of the World Bank in Iraq to nearly $2bn, mostly directed to the development of programs related to infrastructure affected by the violence in the country, reports Alhurra.

According to the bank, the $1.2bn will be directed mainly into three areas: reforming the public sector wage system, reducing spending on energy subsidies and supporting transparency in the financial and non-financial institutions of the state.

($1 = AED3.67, at the time of publishing)