The European Bank for Reconstruction and Development (EBRD) has made a significant move by investing in Iraq for the first time, marking a pivotal moment in the country's economic development. The bank has extended a substantial $100 million in trade finance to the National Bank of Iraq (NBI), Iraq's largest private bank, to support the country's import and export activities.
This investment is a strategic move to enhance Iraq's trade integration with international markets. By providing guarantees and cash advances for imports, exports, and local distribution of goods, the EBRD's Trade Facilitation Programme (TFP) will help mitigate risks associated with international transactions. This initiative aims to improve access to finance for micro, small, and medium-sized enterprises (MSMEs), fostering intra-regional trade and strengthening the NBI's correspondent banking relationships.
Catarina Bjorlin Hansen, EBRD Head of Iraq, expressed her pride in the partnership, stating, 'We are proud to sign our first investment in Iraq and to partner with the National Bank of Iraq. This facility represents a major milestone in supporting the country’s economy by expanding access to trade finance, fostering integration with international markets, and strengthening the resilience of local businesses.'
Ayman Abu Dhaim, CEO of the National Bank of Iraq, echoed the sentiment, emphasizing the partnership's impact on Iraq's financial landscape. 'This partnership with the EBRD marks a pivotal milestone in NBI’s growth journey and in Iraq’s broader financial landscape. Through this facility, we aim to strengthen the flow of trade, empower Iraqi businesses, especially MSMEs, and open new channels that connect Iraq to global markets with greater confidence and stability.'
The EBRD's TFP, launched in 1999, has been instrumental in promoting international trade by providing guarantees and short-term loans to participating banks and factoring companies. This investment in Iraq is a testament to the bank's commitment to supporting the private sector, fostering sustainable growth, and transforming the country's economy.
