World Bank approves USD 1.5 billion aid package for war-torn Iraq

The World Bank has announced an additional USD 1.5 billion aid package for war-torn Iraq, to help the country carry out reforms, improve public services and boost its economy.

The package includes loan guarantees from the UK for about USD 372 million, and from Canada for about USD 72 million.

"Despite an ongoing war and low oil prices, Iraq is undertaking bold transformation reforms that will safeguard economic stability and lay the foundations for longer term private sector development and inclusive growth for all Iraqis," said Ferid Belhaj, World Bank director for the Middle East.

The reforms also will help to expand social safety nets "to reach the most vulnerable segments of the population," he said in a statement on Monday.

The bank also approved USD 41.5 million for a program to improve management of the country's public funds.

With the new package, the World Bank engagement in Iraq rises to nearly USD 3.4 billion, including support for reconstruction of areas recently recovered by government forces and a transport corridor investment.