Iraq to Start Repaying Iran Debt

Settlement of Iraqi debt to Iran is likely to start in a month following an agreement signed by the two governments in March, the secretary general of the Iran-Iraq Joint Chamber of Commerce said.
"The Iraqi government has received permission for releasing Iran's blocked assets. This means it can repay its debts to Iran without worrying about [US] sanctions," Hamid Hosseini was quoted as saying by IRNA. 
Earlier in February, Iraq’s Foreign Minister Fuad Hussein said his government had reached agreement on repaying its debts to Iran, which had been impeded by the economic blockade imposed by former US president, Donald Trump, in 2018.
Hosseini said the financial and banking sectors of the two neighbors had succeeded in removing a series of obstacles to   settling the debts, noting that the process would begin soon.
Due to the economic and banking restrictions, mainly related to gas and electricity export to the Arab neighbor, billions in Iranian forex assets are blocked in that country. 
In December, the National Iranian Gas Company said Iraq owed more than $ 6 billion. Debts include $2 billion in arrears and $1 billion in contract violations. Besides that $3 billion is blocked by the Trade Bank of Iraq.