AMMAN, July 18 (Xinhuanet) -- International groups and countries around the world on Monday pledged more funds in grants or loans to help Iraq in its reconstruction efforts.

    The International Monetary Fund (IMF) said the group will provide the war-battered country 500 million US dollars in loans as a special fund for its reconstruction projects.

    By opening a channel of dialogue with the Iraqi leaders, the IMF would be able to help Iraq work out its reform and development plan and solve its debt problems, said the group at an international donors' conference for Iraq at the Dead Sea resort of Shuneh of Jordan.

    Some 30 percent of Iraq's debt has been written off and an additional 20 percent was expected to be forgiven in the coming three years, it said.

    Meanwhile, the World Bank on Monday unveiled plans to offer Iraq 500 million US dollars in soft loans, a statement said.

    "In response to a request from the government of Iraq, up to 500 million dollars in soft loans will be made available over the next two years to finance development projects in priority sectors," it said.

    "This lending package is the first to be extended by the World Bank to Iraq since 1973," said the statement released on the sidelines of the conference.

    "The proposed loans are part and parcel of the lending framework pledged in Madrid (October 2003) at the first international donor conference for Iraq," it said.

    The Islamic Development Bank (IDB) also signed an agreement during the meeting with Iraq to offer 500 million dollars to help rebuild the country.

    Apart from the aid promised by the monetary groups, the European Union (EU) offered 200 million euros and Australia, Italyand Denmark pledged 45 million, 10 million and 14 million dollars respectively for Iraq's education and infrastructure reconstruction.

    Calling for expanded participation of the international community in Iraq's reconstruction efforts, Iraq's planning minister Barham Salih said "the time has come to deliver on promises and disburse the grants promised to Iraq."

    "The aspirations of the Iraqi people for a better life cannot be delayed much longer," he said.

    Salih said Iraq's raging insurgency was proof that Iraq needed more money, particularly through foreign investments.

    However, Salih stressed that Iraq must lead reconstruction efforts instead of foreign donors. "We need Iraqi leadership, we need Iraqi ownership of the reconstruction program and a partnership with the international community," he said. Enditem