(VOVworld) – The World Bank has approved its first financial aid worth 350 million USD to support the reconstruction process in Iraqi towns recaptured from Islamic State militants.

World Bank’s Headquarters at Washington DC, US. (Photo: AFP)

Iraqi Finance Minister Hoshiyar Zebari said around a third of the money would go toward repairing roads and bridges, with a similar amount allocated to restoring electricity networks, water, and sewage. Zebari said Sunday’s deal granted Iraq a 15-year-loan at around 1 percent interest, with a 5-year grace period. This is the first international aid to help the Iraqi government restore people’s lives in areas devastated by the war. A World Bank loan document said there was a need to restore basic services quickly and to show that the “state is re-establishing its presence and credibility”, adding that it will quickly transact the loan as scheduled this September or October. The WB is also preparing a separate 1-billion-USD loan to help Iraq deal with its budget deficit.