The UK government has agreed to finance 10 billion pounds worth of loans to support infrastructure projects in Iraq over a period of ten years. The program will exclusively target and benefit British businesses looking to invest in Iraq.

“This loan is exclusively allocated to British companies,” Iraqi Acting Finance Minister Abdul Razzak al-Essa told a news conference at the signing ceremony. Interest rates will be set when the contracts are agreed, the minister said.

The agreement for financial aid comes after the two nations signed a memorandum of understanding in Baghdad, which will act as the framework to providing funds for redevelopment in transport, electricity, healthcare, sewage and water.

“For the United Kingdom this is a further evidence of the bilateral support that we are giving and continue to give to Iraq, to help Iraq move forward to recover from the ravages of Daesh (Islamic State),” British ambassador Frank Baker said.

The agreement epitomises the ongoing close relationship between Iraq & Britain, and will ensure there are funds available to attract British investment in the country.