BAGHDAD: Iraq secured a deal on 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 militant 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.

Published in Dawn, June 30th, 2016

Opinion

Editorial

Afghan turbulence
Updated 19 Mar, 2024

Afghan turbulence

RELATIONS between the newly formed government and Afghanistan’s de facto Taliban rulers have begun on an...
In disarray
19 Mar, 2024

In disarray

IT is clear that there is some bad blood within the PTI’s ranks. Ever since the PTI lost a key battle over ...
Festering wound
19 Mar, 2024

Festering wound

PROTESTS unfolded once more in Gwadar, this time against the alleged enforced disappearances of two young men, who...
Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...