France agrees 1 bln euro loan to Iraq for reconstruction

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France has agreed to loan Iraq 1 bln euros to help reconstruction of areas devastated by conflict in recent years, Foreign Minister Jean-Yves Le Drian said on Monday.

Le Drian made a statement to reporters after meeting his Iraqi counterpart Mohammed al-Hakim in Baghdad.

The French foreign minister also met with Iraqi Prime Minister Adel Abdul Mahdi on Monday as the US troop withdrawal has also alarmed western allies who still see ISIS as a threat.

Le Drian said that the US withdrawal “raised questions”, adding that ISIS had not been completely destroyed in Syria yet and threatened to return in Iraq.

Iraq has signaled it could become more military involved against ISIS in neighboring Syria. It has carried out several air strikes against ISIS in Syria in agreement with Damascus.

The French foreign minister is on a regional tour which took him on Sunday to Jordan.

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