Iraq secures $2.7 billion US loan from for military equipment

By: | Published: June 29, 2016 4:36 PM

Iraq secured a $2.7 billion loan from the United States on Wednesday to fund ammunition and maintenance of fighter jets, tanks and other military equipment for use in the war against Islamic State.

US loanBaghdad will have eight and a half years, including a one-year grace period, to repay the loan, which carries a 6.45 percent interest rate, a U.S. embassy statement said. (Reuters)

Iraq secured a $2.7 billion loan from the United States on Wednesday to fund ammunition and maintenance of fighter jets, tanks and other military equipment for use in the war against Islamic State.

Baghdad will have eight and a half years, including a one-year grace period, to repay the loan, which carries a 6.45 percent interest rate, a U.S. embassy statement said.

The deal will help Iraq service its F-16 fighter jets, M1A1 tanks, armoured vehicles and attack helicopters as well as maintain navy ships and systems to protect the Umm Qasr port and southern oil platforms, the embassy added.

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Declining global oil prices and the costs of fighting Islamic State militants who seized a third of Iraq’s territory in 2014 have hit govenrment revenues, which rely almost completely on oil exports.

Iraq received its first batch of F-16s in 2015 as a part of a $65 million deal with Lockheed Martin Corp.

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