Iraqi tanks rumble towards Falahat, a village on the outskirts of Fallujah, on June 27, 2016
Iraqi tanks rumble towards Falahat, a village on the outskirts of Fallujah, on June 27, 2016 © Moadh Al-Dulaimi - AFP/File
Iraqi tanks rumble towards Falahat, a village on the outskirts of Fallujah, on June 27, 2016
AFP
Last updated: June 30, 2016

Iraq inks deal for $2.7 billion US military loan

Iraq secured a deal Wednesday for a $2.7 billion US loan to finance the buying of ammunition and maintenance of tanks and fighters used in the fight against the Islamic State group.

A US embassy statement said the declaration of intent was signed by Ambassador Stuart Jones and Iraqi Finance Minister Hoshyar Zebari.

The US Foreign Military Finance credit facility will help Iraq "defer payment for the purchase of ammunition and maintenance of its F-16s (jets) and M1A1 (Abrams) tanks," Jones said.

The deal gives Iraq eight-and-a-half years to pay for its military purchases, in what the statement said was part of Washington's efforts to ensure Baghdad's economic difficulties do not affect the fight against IS.

Iraq, whose economy is overwhelmingly reliant on oil, is facing a bruising budget crunch caused by the drop in crude prices and the ongoing cost of the war on IS.

The United States, which occupied Iraq for eight years, is the lead nation in a coalition providing Iraq with assistance in the form of air strikes, military advising and training.

blog comments powered by Disqus
Stay Connected
twitter icon Twitter 13,558 linkedin icon LinkedIn 463
facebook icon Facebook 87,173 google+ icon Google+ 272