WASHINGTON, November 30 (Sputnik) — The World Bank is in early discussions with Iraq and the Kurdistan Regional Government (KRG) about making a loan to help improve Kurdistan’s economy, World Bank Chief Economist Shanta Devarajan said on Wednesday.
"We’re starting discussions… about the possibility of doing a subnational loan, one to the KRG and one to Basra," Devarajan said in an interview with Kurdistan24.
A subnational loan would have to be guaranteed by the Iraqi central government in Baghdad, which has suggested it would be comfortable with taking on the risk.
The World Bank and Kurdish government have developed a three-year roadmap for economic reform to restructure the Kurdish economy, Devarajan said.
The Erbil government is facing a fiscal crisis due in part to low oil revenues, an influx of refugees from Iraq and Syria and the costly fight against the Islamic State terror group.
