Iraq Seeks $500 million from Islamic Development Bank

By Simon Kent.

Two days after the beginning of Iraq's entry into the Eurobond market, in which the country hopes to raise up to $6 billion, Iraq has announced it is seeking a $500 million loan from the Jeddah based Islamic Development Bank (IDB.)

However, according to a source in the Iraqi govt. the sum is unrelated to the recent bond sale bid, and has been under arrangement for some time.

According to Yahoo! Maktoob news, half of this loan will go on redeveloping a trade route between Iraq and neighbouring countries, although no further information was given as to which route this is.

It is likely that the rest of the loan will go on salaries of government workers and maintaining existing strategic infrastructure projects.

(Source: Yahoo! Maktoob)

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