Iraq to receive $2.7 billion loan from United States for military equipment 53006163

Defence & Security News - USA, Iraq
Iraq to receive $2.7 billion loan from United States for military equipment
According to NRT TV, Iraq secured a $2.7 billion credit facility from the U.S. to purchase military equipment for the fight against the Islamic State (ISIS), the Iraqi Ministry of Finance said on Wednesday (June 29).
Iraq to receive 2 7 billion loan from United States for military equipment 640 001
U.S. and Iraqi military service members inspect Humvees and logistical support vehicle in Baghdad, Iraq, March 26, 2008,This equipment was procured by the Ministry of Defence through the foreign military sales program (Photo US Army)
The ministry released a statement saying Iraqi Finance Minister Hoshyar Zebari and U.S. Ambassador to Iraq Stuart Jones signed a declaration of intent to extend a $2.7 billion credit facility to the Iraqi government.

The finance ministry said $200 million will be allocated to Peshmerga forces to carry out their duties.

The support came as a response to the Iraqi government’s efforts to receive financial support from international institutions and countries to meet the challenges brought on by the financial and economic crises, the finance ministry added.

The U.S. embassy to Iraq posted a statement on its official Facebook page saying, “The 2.7 billion deal gives Iraq a one-year grace period and eight and a half years total to pay for its military purchase.”

“This FMF facility will allow Iraqi Security Forces to defer payment for the purchase of ammunition and maintenance of its F-16s and M1A1 tanks,” ambassador Jones said according to the statement.

Besides the recent loan, The U.S. State Department announced on June 21 a new humanitarian assistance package for Iraq in the amount of $20 million as support for Iraqi displaced people issues in response to the U.N. refugee agency’s appeals for increased international support for civilians in Iraq.