Futoshi Matsumoto, the Japanese ambassador to Iraq, announced on Sunday that the Japanese government is initiating seven new projects.

According to Matsumoto, Japan granted Iraq loans for 40 years at a low-interest rate of 0.2 percent.

According to Matsumoto, Japanese companies have executed around 30 major projects in Iraq over the past 20 years. "Seven new projects will be carried out next year if the Iraqi government allocates some funding," he said.

According to the Japanese Ambassador, two projects are scheduled to be carried out in 2023, the first being the Basra Refinery Upgrading Project and the second a water desalination project in Muthanna.

Matsumoto explained that the Muthanna project will cost $300 million and is a very important project for Iraqi infrastructure development.

According to the Japanese ambassador, Japan continues to provide soft loans to Iraq.

Last week, the Japanese embassy in Iraq reported that Matsumoto and Taif Sami, the Iraqi Finance Minister, signed and exchanged notes regarding the provision of the fifth batch of Official Development Assistance (ODA) loans worth $1.4 billion for the Basra Refinery Upgrading Project, the largest Japanese project in Iraq.

According to the Japanese embassy in Iraq, the project aims to save foreign currencies spent on fuel imports, improve trade, reduce the fiscal deficit, and create economic and employment opportunities.

As part of the project, Iraq will also modernize its energy industry, attract the private sector to its energy sector, and reduce air pollution by reducing the sulfur content in oil products.

Japan's advanced technical and engineering skills will be applied to the Fluid Catalytic Cracking (FCC) Complex in Basra Refinery at a remarkably low-interest rate of 0.2 percent per annum, contributing to Iraq's financial stability.