Support for Iraq: KfW provides loan of EUR 500 million

• KfW and Iraq government sign framework agreement in Baghdad
• Emphasis on restoring the foundations for basic public services
• Intention is to enable internally displaced persons to return to areas liberated from IS – a contribution towards stabilising Iraq and in combatting the causes of flight.

KfW and the Iraqi government today signed a framework agreement for an untied financial credit totalling EUR 500 million. By providing these resources, KfW is supporting the sustainable improvement of living conditions in Iraq on behalf of the German Federal Government. The loan funds will be used for maintaining public infrastructure, particularly in regions that could be liberated from IS. The measures being supported will include supplying basic services such as water, sanitation and electricity, as well as transport infrastructure. This is also intended to establish the basis for economic normalisation in the areas in question.

"After liberation from IS and the end of the armed conflicts, it is essential to develop a basic functioning provision in terms of water and energy, but also in transport and traffic. That is the next necessary step in creating sustainable living conditions in Iraq so that people can have good prospects for the future in their country. As part of the international stabilisation strategy for Iraq co-ordinated by Germany, KfW is also making an important contribution to combating the causes driving people to flee," says Dr Norbert Kloppenburg, Member of the Executive Board of KfW.

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