Iraq gets loan from Japan to develop thermal power station

BAGHDAD, Aug. 5 (Xinhua) -- Iraq is promised to get a loan of 195 million U.S. dollars from Japan to develop a thermal power station in Basra province, said an Iraqi government statement Saturday.

The loan was signed during a visit to Iraq by Japan's State Minister for Foreign Affairs, Kentaro Sonoura, who met Prime Minister Haider al-Abadi on Saturday, the statement said.

Iraq needs external financing to plug a budget deficit of approximately 25 trillion Iraqi dinars (21.44 billion dollars) for this year as it grapples with lower global oil prices and costs associated with the fight against Islamic State.