Iraq is searching for internal and external loans to finance infrastructure projects that need more than 100 billion dollars. International Monetary Fund has urged Baghdad to increase capital spending.
Iraq's debt represents 34% of the country's gross domestic product. Baghdad borrowed $257 million from JP Morgan Morgan for the purpose of maintaining power plants in the gas-rich region. Iraq still needs to borrow $5.8 billion for the Basra water desalination and sky train projects, financing the first project from the regional development budget, and financing the second project by offering it.