Business | Banking
Iraq signs $12.9m loan deal with IDB
Iraq has signed two agreements with the Islamic Development Bank (IDB) for a soft loan of $12.9 million for constructing and furnishing 15 elementary schools, and a technical assistance grant for capacity building in the Iraqi Ministry of Education.
- By Mariam Al Hakeem, Correspondent
- Published: 00:00 August 20, 2006
Riyadh: Iraq has signed two agreements with the Islamic Development Bank (IDB) for a soft loan of $12.9 million for constructing and furnishing 15 elementary schools, and a technical assistance grant for capacity building in the Iraqi Ministry of Education.
According to the first agreement, implementation of the 15-school project will take almost 30 months. At least 7,200 pupils will be enrolled in the schools which will be located nationwide.
The project is part of an Iraqi government plan to improve basic education and expand the capacities of the schools.
The soft loan will be repaid over 20 years, including a five-year grace period.
The second agreement provides for extending $390,000 in the form of a technical assistance grant to enhance the institutional capacity of the Iraqi Ministry of Education.
The agreements were signed by Iraqi Central Bank Governor Senan Al Shubaibi, who is also the IDB Governor for Iraq, and IDB President Ahmad Mohammad Ali.
Al Shubaibi expressed his happiness at the fruitful cooperation between his country and the Islamic Development Bank and reiterated Iraq's desire to promote this cooperation.
IDB president pointed out that the two agreements are part of a $500 million programme launched by the bank to support the reconstruction and rehabilitation of Iraq.
The program includes $50 million in loans for social services, $245 million for public utilities and agriculture, $200 million for importing basic commodities and capital goods, and $5 million in the form of technical assistance grants.
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