KUWAIT- Italy will provide 260 million euros ($321 million) in soft loans to Iraq alongside $6.5 million in grants and $5 million in humanitarian assistance, Giorgio Marrapodi, Italy's director general for development cooperation, said on Wednesday.

He was speaking in Kuwait where donors and investors have gathered to discuss efforts to rebuild Iraq's economy and infrastructure as it emerges from a devastating conflict with Islamic State militants who seized almost a third of the country. ($1 = 0.8100 euros)

(Reporting by Maher Chmaytelli and Ahmed Hagagy; Writing by Ahmed Aboulenein; Editing by Alison Williams) ((ahmed.aboulenein@thomsonreuters.com; +964 790 191 7021; Reuters Messaging: ahmed.aboulenein.thomsonreuters.com@reuters.net))