France to loan 430 mln euros to Iraq

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France is to grant a 430-million-euro loan to Iraq whose economy has been weakened by low oil prices and its fight against jihadists, French Ministry of Foreign Affairs said on Saturday.

Foreign Minister Jean-Yves Le Drian made the announcement during talks in Baghdad with Iraqi Prime Minister Haider al-Abadi. He said the 430 million euros (512 million US dollars) would be released before the end of 2017.

"France was present from the beginning of the battles against Daesh (ISIL group) and will be present as well during time of peace," said Le Drian, who was accompanied by Defense Minister Florence Parly.

The loan is aimed at helping the war-torn country implement reforms, improve public services and boost the performance of its state enterprises.

Le Drian also handed Abadi an invitation from French President Emmanuel Macron to visit Paris.

The visit by France's foreign and defense ministers come as Iraqi forces announced the ouster of the ISIL group from the center of Tal Afar, one of the jihadists' last remaining stronghold in northern Iraq.

On the plane to Baghdad, Le Drian said that Iraq now faced the dual challenge of "a war that is coming to an end and the beginning of the stabilization and reconstruction".

France is a key member of the US-led coalition that has been battling ISIL in Iraq and neighboring Syria.

French forces have carried out air and artillery strikes in support of Iraqi operations against the jihadists, who have lost much of the swathes of territory they had seized in 2014.

France, which refused to take part in the 2003 American-led invasion that brought down Saddam Hussein, is keen to participate in the reconstruction of Iraq.

The cost of reconstruction has been estimated at between 700 billion and 1 trillion US dollars (590 billion to 840 billion euros).

Source(s): AFP