Germany’s chancellor, Angela Merkel, has promised to loan millions to Iraq in a bid to aid the reconstruction and redevelopment.

The announcement was made after a meeting with Prime Minister Haider al-Abadi in Berlin, where Angela Merkel stressed the importance of economic support to foster peace in Iraq and the wider region.

Although the loan is not specified for particular projects, Merkel stressed the importance of using it to rebuild Iraq’s war-torn economy and infrastructure. A strategy that was severely undermined by falling Oil prices in recent years. Oil prices have fallen from around $110 in 2014 to $30 per barrel in the current economic climate. A serious fluctuation which has hit Iraq’s economy particularly hard due to its reliance for more than 90% of its revenue on exporting the product.

The aim is that further economic assistance will help stabilise the country and reduce the amount of refugees who see no other choice than to leave Iraq. As part of this movement, Germany has promised its expertise and help to demine cities and towns which are still at high risk to civilians. Germany will also work closely with the Iraqi Government to tackle human traffickers, who lure vulnerable Iraqis to Europe under false pretences.