Iraq News - Local News - Baghdadpost

Japanese agency offers loan to upgrade Iraqi oil refinery

The International Japanese Cooperation Agency has signed an agreement on Sunday with the Iraqi Ministry of Finance to offer Iraq a loan of 110 billion Japanese Yen (nearly USD one billion) to upgrade the Basra oil refinery.

The deal was inked by Iraq’s Deputy Prime Minister for Economic Affairs and Minister of Finance Fuad Mohammad Hussein and Ambassador of Japan to Iraq Naofumi Hashimoto.

The loan is refundable over 40 years with a ten-year grace period and 0.02 percent interest rate.

A statement by the ministry said the project aims to increase Iraq’s oil refining capacity by constructing a new plant at Al-Basra refinery, south Iraq, and introducing light gas oil hydrodesulfurization (HDS) technology.