An oil field is seen in Kirkuk, Iraq October 18, 2017. REUTERS/Alaa Al-Marjani
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The crisis unfolding around the Iraqi city of Kirkuk has left some of the world's largest commodity trading houses worried the country's autonomous Kurdish region will struggle to repay billions of dollars in cash-for-oil loans.The trading arm of Russian oil company Rosneft PJSC plus independent traders Glencore PLC, Vitol, Trafigura Group and Petraco have made pre-export payment loans to the regional government of Kurdistan.As the industry gathered at the annual Oil & Money conference in London this week, the people said that there were big questions about the capacity of Kurdistan to repay the loans after losing output from the fields near the disputed city of Kirkuk. However, they said that both Kurdistan and Baghdad were mutually dependent on oil exports and a deal could be reached in the next few weeks to boost output again.Glencore, for example, raised about $500 million through a five-year note that paid a 12 percent coupon to underpin its loan to the Kurdistan government, people familiar with the matter said.Until now, the traders said Kurdistan was roughly up-to-date repaying all the loans.
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