IBRD Loan: US$250 million
Terms: Maturity = 15 years; Grace Period = 4.5 years
Project ID: P119214
Project Description: The objective of the project is to mitigate the impact of the current fiscal crisis on Iraq's economy and to support its medium-term economic reform program, thereby helping the country improve fiscal sustainability and reducing its fiscal and socio-economic vulnerability to sudden drops in oil revenues. This loan will add value to the portfolio of existing Bank operations in Iraq and help achieve the objectives laid out in the Bank's strategy to support Iraq. It brings together for the first time different elements of Bank assistance under a consolidated, coherent reform package; lays out prior actions and future reforms in areas not directly addressed in previous operations, such as the links between the Iraq's poverty reduction strategy and the State Budget as well as the rationalization of the public distribution system. The loan will help accelerate policy decisions in a number of reform areas, thereby energizing the reform agenda and providing synergy with the implementation of the investment project portfolio.