France is to grant a 420-million euro loan to Iraq whose economy has been weakened by low oil prices and its fight against jihadists, a French foreign ministry official announced Saturday.

Visiting Foreign Minister Jean-Yves Le Drian said in a meeting with Iraq's Prime Minister Haider al-Abadi in Baghdad that the 420 million euros ($512-million) would be released before the end of 2017, the official told AFP.