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Iraq signs loan financing agreement with Austrian bank worth 260 million euros to revitalise agricutlure

The New Region

Sep. 17, 2024 • 2 min read
Image of Iraq signs loan financing agreement with Austrian bank worth 260 million euros to revitalise agricutlure Iraq's Finance Minister Taif Sami while signing a loan financing agreement with an Austrian financial service provider bank. Photo: Iraqi Finance Ministry

The Iraqi Finance Ministry signed a loan financing agreement worth 260 million euros with an Austrian bank on Tuesday to support the country’s 'pivot irrigation systems project'

 
ERBIL, Kurdistan Region of Iraq - The Ministry of Finance of Iraq on Tuesday signed a loan financing agreement worth 260 million euros with an Austrian financial service provider to help revitalize agriculture in the country, notably a "pivot irrigation systems project." 
 

"Finance Minister Taif Sami Mohammed signed a loan financing agreement with the Austrian Erste Group Bank on Tuesday to support the pivot irrigation systems project for the Ministry of Agriculture, worth (262,155,298) euros,” read a statement from Iraq’s Finance Ministry.

  

"The signing of the agreement comes within the framework of the government's efforts to enhance infrastructure and improve public services,” the statement said, adding "the financing is expected to contribute to revitalizing the agricultural sector, alleviating water scarcity, stimulating economic growth, and creating more job opportunities.”
 
The statement added the agreement with Austria giant Erste Group Bank falls within joint cooperations between Baghdad and Vienna.
 
"The project represents an important step towards modernizing the agricultural sector in Iraq, especially in light of the challenges facing the sector due to water scarcity and climate change,” the statement detailed. 
 

According to the agreement which was signed in presence of Ambassador of Austria to Iraq Andrea Nasi, the project will be implemented by the Austrian company Bauer.

 

The company will provide technical and advisory support to the Ministry of Agriculture during all phases of the project, including design, implementation, operation and maintenance."

 

Iraq in recent years has severely been grappling with climate change, drought and water shortages. 

 
Water scarcity is a critical issue for Iraq, exacerbated by upstream dams constructed by Turkey on the Tigris and Euphrates rivers. These dams have significantly reduced water flow into Iraq, intensifying the country’s existing water shortages. 
 

In mid-April, Turkish President Recep Tayyip Erdogan visited Iraq for the first time in years, focusing primarily on water, oil, and regional security issues. 

The visit, which included meetings with Iraqi President Abdul Latif Rashid and Prime Minister Sudani, aimed to address several contentious topics, especially the management of shared water resources.

 

Erdogan acknowledged the importance of water during his visit, emphasizing it as "one of the most important points" for discussion. He expressed a willingness to work towards resolving these water-related issues in response to Iraqi requests.

Farhad Alaaldin, foreign affairs advisor to the Iraqi PM, at the time highlighted water management as a major topic for Erdogan's talks with Iraqi officials. The discussions aimed at finding cooperative solutions to the water scarcity that plagues Iraq, with an emphasis on seeking Turkish support to alleviate the situation.

 

Iraq is among the top five countries most impacted by climate change. The country is committed to the 2015 Paris agreement to combat climate change and intensify efforts towards a sustainable low-carbon future.

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