US backs $1B bond for Iraqi government

NEW YORK (AA) -- The U.S. administration provides guarantee for the Iraqi government issuing a $1 billion bond, the U.S. State Department said in a statement Wednesday.

"Today, the Republic of Iraq successfully closed on its offering of a $1 billion sovereign bond issuance guaranteed by the United States of America," the statement read.

"This loan guarantee underscores the strong and enduring commitment of the United States to support the government of Iraq in this critical moment in the fight against Da’esh," it added.

The guarantee is part of an international assistance package and an IMF supported reform program, and is expected to help Iraq access to low-cost financial tools to adopt institutional reforms, facilitate growth, and achieve economic stability in the long-run.

Iraqi government offered $1 billion worth of five-year bonds earlier Wednesday.

Iraq has been fighting against a terrorist Daesh overrun since 2014, which has been costly for the country. Baghdad has been receiving help from the U.S. in terms of military expertise.