Iraq Signs €262 Million Deal with Erste Group

Iraq’s Ministry of Finance has signed a major loan financing agreement with Austria’s Erste Group Bank to support the modernisation of the country’s agricultural sector. The agreement, worth 262 million euros, was signed by Iraq’s Finance Minister Taif Sami Mohammed and the Austrian Ambassador to Baghdad, with the funds directed towards a crucial irrigation systems project.

The project aims to enhance Iraq’s agricultural infrastructure and is expected to alleviate the impact of water scarcity, stimulate economic growth, and create new employment opportunities, all contributing to the overall revitalisation of the agricultural sector.

The agreement aligns with Iraq’s broader strategy for joint cooperation with Austria and reflects the country’s 2023-2025 budget priorities, as outlined in Cabinet Resolution No. 24630 of 2024. The initiative emphasises external borrowing for economically viable investment projects, focusing on sustainable development.

Finance Minister Taif Sami Mohammed hailed the agreement as a crucial step in strengthening economic ties between Iraq and Austria. She also expressed optimism about future joint projects that will continue to support Iraq’s development objectives.

As part of the deal, the Austrian company Bauer will provide technical and advisory support throughout the project’s design, implementation, operation, and maintenance phases, ensuring a smooth and sustainable outcome. The project is expected to produce long-term economic benefits by increasing domestic agricultural production and reducing reliance on imports.

Source: Ministry of Finance