The National Bank of Iraq Secures a Loan for $50 million from DFC, Loan will help small businesses, reduce unemployment.
The National Bank of Iraq received a loan of $50 million loan from the US Development and Finance Corporation (DFC). In exchange for the bank's commitment to add $35 million facilities to the loan portfolio of small and medium enterprises over the next five years, the entire loan is intended for its small and medium enterprises' customers at a low cost.
The loan will empower the bank to sustain its crucial role in providing financial aid to this vital sector. This will involve expanding financing and maintaining working capital, leading to a boost in commercial activity, job retention, and overall economic stability. Given the significant contribution of small and medium enterprises to economic growth, the loan will also create new job opportunities and drive economic and social development. Furthermore, it will stimulate sustainable economic growth, resulting in a substantial increase in revenues for SMEs operating in Iraq.
In the past few years, small and medium enterprises (SMEs) have gained international recognition for their crucial and important role in creating new jobs. In addition to their complementary roles in supporting larger companies since they are the main tributaries to their work, they also contribute significantly to achieving economic development and reducing poverty and unemployment crises."
Small and medium enterprises in Iraq account for about 90% of all companies in the country, provide about 70% of job opportunities, and contribute approximately 25% of the country's GDP, according to a report prepared by the World Bank. The private sector provides about 60% of Iraq's jobs, but most of them are provided by small and medium businesses, which face a number of challenges, including a lack of liquidity, according to a statement issued by the bank.
QIB has emphasized its dedication to assisting SMEs by introducing specialized programs aimed at enhancing their competitiveness and advancing their enterprises. It is noteworthy that the National Bank of Iraq currently leads the ranking of banks operating in the Iraqi banking sector, with assets totaling nearly $2.8 billion. This success is attributed to a substantial increase in customer deposits by 91%, as well as a continuously expanding customer base, which now stands at over 200,1000 individuals served by a team of 27,200 employees.
This article was transcribed and re-written from a reliable news source in Baghdad.
