CAIRO (Kyodo) Japan agreed in principle to extend around ¥80 billion in fresh loans to Iraq for three infrastructure-related projects during recent bilateral talks, sources close to the negotiations said Saturday.

During talks held in Baghdad on April 26, the first since the U.S.-led Iraq war broke out, Japan agreed to provide financial support for thermal power generation, water supply, and water power generation projects mainly in central Iraq, the sources said.

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