Iraq has approved plans to seek $1.3 billion loans from European banks to fund its power expansion projects being undertaken by Siemens of Germany and the US' GE company, local newspapers reported on Wednesday.

The cabinet, at its meeting on Tuesday, endorsed the plan to borrow the sum from British, German and Swedish banks, Aliqtisad News and other publications said.

The cabinet authorised the Finance Ministry to sign loan agreements with the banks to finance several power projects executed by those two firms, it added.

Siemens and GE have signed agreements with Iraq to upgrade its electricity networks to face growing domestic demand and rehabilitate power facilities damaged during the war.

Reuters