Iraq seeks loan from Japan for water projects

0 Comments | AFP, August, 2008

BAGHDAD (AFP) — Iraq is negotiating a multi-million-dollar loan from Japan to fund water and sewage projects in Baghdad and in the northern Kurdish region, the government said on Wednesday.

The cabinet has approved the 36.5-billion-yen (332-million-dollar) loan and the proposal was now with the Iraqi parliament, government spokesman Ali al-Dabbagh said in a statement.

He said there would be no interest charge on the first 10 years of the 40-year repayment period, and during the remaining 30 years the loan would attract interest of 0.65 percent.

The loan would be used to finance a water project in the northern Kurdish region and a sewage project in Baghdad, the statement added.

In 2003, Japan announced a five-billion-dollar aid package to Iraq at an...