The Iraqi Cabinet has approved a mechanism to address the outstanding dues of companies investing in the electricity sector.
The decision authorises the Trade Bank of Iraq (TBI) to take the necessary steps to purchase debts owed to investment companies against amounts due from the Ministry of Electricity. The State Oil Marketing Organisation (SOMO) will commit to making monthly payments from the proceeds of fuel oil sales to TBI, enabling the bank to service the purchased debt.
Additionally, the Cabinet required the Ministry of Electricity to prioritise payments to companies investing in power plants. The order of priority includes:
- Repayment of loans from international financial institutions.
- Payment of operating and maintenance costs.
- Repayment of loans to local banks, if applicable.
- Payment of dues to investor companies without external debts.
(Source: PMO)
