The U.S. International Development Finance Company (DFC) and the United States Agency for International Development (USAID) have signed a $50 million loan agreement for the National Bank of Iraq (NBI), with the aim of expanding access to funding for entrepreneurs.
Prime Minister Mohammed Shiaa Al-Sudani witnessed the signing ceremony of the agreement on the sidelines of the meeting of the Iraqi-American Supreme Coordinating Committee in Washington.
This loan, which was attended by the signing ceremony of the CEO of the American International Development Finance Company, Scott Nathan, and the Chairman of the Board of Directors of the National Bank of Iraq, Bassem Khalil Salem, is the first loan submitted by the US International Development Finance Company to a commercial bank in Iraq.
Following the signing of the agreement, Al-Salem said, “We are proud to be the first commercial bank in Iraq to sign a loan agreement from the United States International Development Finance Company and the United States Agency for International Development, and we see this partnership as an important step and a unique opportunity to support economic and investment growth in Iraq by enhancing the potential of entrepreneurs and increasing their access to the necessary funding to support their projects.”
Al-Salem thanked Iraqi Prime Minister Mohammed Shiaa Al-Sudani and international financial institutions for their continuous support to entrepreneurs and small and medium-sized companies, stressing the commitment of the National Bank of Iraq to achieve the common vision of the two sides to progress and prosperity in the country, pointing out that this agreement will be a strong incentive to achieve these goals.
The CEO of the US International Development Finance Company, Scott Nathan, affirmed the company’s commitment to unleash Iraq’s economic potential and empower its private sector by providing meaningful financial support for small projects, and said that “this announcement is an important step in the progress of our efforts, this investment will contribute to increasing the access of borrowers and entrepreneurs for the first time to financing across Iraq.”
For her part, USAID Iraq Director of the USAID Mission in Iraq, Elice Jensen, said, “Access to finance is the key driver in the innovation process, economic growth and job creation, so USAID support will enable private banks to overcome liquidity challenges and offer affordable business loans for small projects. Through our partnership with the National Bank of Iraq and the American International Development Finance Company, we will help create a more robust, diverse and inclusive private sector in Iraq.”
In turn, the Commissioner’s Director of the National Bank of Iraq, Ayman Abu Dheim, said, “The commitment of the Iraqi government to creating an environment conducive to growth, and the strategic focus of the Prime Minister and His Excellency the Governor of the Central Bank of Iraq on empowering small and medium enterprises, is a major focus in our reaching this important achievement. We are confident that this cooperation will support the creation of a more inclusive and dynamic economy in Iraq.”
This loan is expected to contribute to increasing the access of Iraqi small businesses to financing through Iraq’s largest private sector bank. This initiative will prioritize borrowers for the first time and will allocate funding for projects owned by women, and the increase in the number of small projects in Iraq.
In addition to the financing, USAID provided advisory services during the preparation of the project, to facilitate loan negotiations between the National Bank of Iraq and the US International Development Finance Company and accelerate the completion of the transaction, while the US International Development Finance Company is the official lender.
