Iraq will create its own special financial mechanism (SPV) for trade with Iran that will allow the country to redeem debt and continue to import vitally important gas and electricity, reports Mehr.

According to three high-ranking Iraqi officials, Iraq is currently developing a financial mechanism that is similar to European financial mechanisms.

Iraq depends on Iranian gas and electricity and is trying to avoid repetition of the violent protests that citizens of Basra and other cities held last year. Currently, Iraq has to pay off $2,000,000,000 in debts, and the new mechanism will allow Iraq to pay off that debt.