The Central Bank of Iraq (CBI) has reportedly set the interest rate for its solar energy financing initiative at no more than 2.5%, as part of efforts to encourage citizens and companies to invest in renewable energy.
State-run Iraqi News Agency (INA) quotes Rafal Jameel, Director of Initiatives at the Central Bank, as saying that the bank had launched several initiatives, including financing for the purchase of solar panels, alongside simplified procedures to boost uptake.
She explained that the interest rate was reviewed after complaints from citizens and energy-sector companies that the original rate was too high. As a result, the revised rate was capped at 2.5%, with the Central Bank’s own interest set at 0.5%, compared with the current monetary policy rate of 5.5%.
Jameel noted that demand for the initiative remains very weak, adding that participation by state-owned banks has been limited, despite their importance given that most citizens receive their salaries through them. She stressed that the Central Bank cannot compel banks to take part, but urged them to assume their responsibility in supporting the energy sector, whether through financing factories, companies or household projects.
