Germany signed an agreement with the government of Iraq on Monday, February 13, to provide a €500 million euro (over $521 million) credit facility to fund investments aimed at reconstructing Iraqi infrastructure damaged due to the war against the Islamic State (ISIS).
"We want to help the Iraqi government rebuild public infrastructure so that the people who had to flee IS terrorism can return to their homes," Foreign Minister Sigmar Gabriel said in a statement.
The German FM added tens of thousands of Iraqis had already returned to their homes as Iraqi security forces liberated the eastern side of Mosul from militants.
He noted the liberation of eastern Mosul marked an important success.
"Islamic State cannot be defeated militarily alone," Gabriel said. "More engagement and investment to ensure functioning water and energy supplies and transportation systems are needed to transform these cities and areas into peaceful, vibrant and livable homelands."
The funding comes from the KfW Banking Group, with a small team of German officials to advise Iraq on how to distribute it.
The credit, which is the biggest yet to Iraq, came after German Chancellor Angela Merkel promised support to Iraqi Prime Minister Haider al-Abadi last year.
1.4 million Iraqis have been displaced so far due to the war against ISIS in the country, with 160,000 of those becoming displaced recently due to the three-month long battle to regain Mosul from the militants.
With Iraqi forces ready to descend on western Mosul – where 750,000 people still live under ISIS control – another quarter of a million people are expected to become displaced in the coming weeks.
Read 10548 times