Iraq receives $2.7 billion loan to purchase US military equipment

The United States and Iraq signed an agreement on Wednesday to provide Baghdad with a $2.7 billion loan to purchase and maintain weapons and military equipment for its fight against Daesh.

The US Embassy in Baghdad said on Wednesday that the deal gives Iraq a one-year grace period and eight and a half years total to pay for its purchases of ammunition and maintenance of its F-16s and M1A1 tanks.

Mithal al-Alusi, a member of the Iraqi parliamentary committee on foreign relations, said the loan will help Iraq purchase advanced weapons from the US and maintain military equipment which will contribute to its battle against Daesh.

Iraq is suffering from a severe financial crisis as a result of low oil prices and the cost of its war against Daesh.