Iraq to launch 350M IQD guarantor-free loans for young entrepreneurs
Baghdad (IraqiNews.com) – Iraq's Ministry of Labour and Social Affairs is in the final stages of launching a major new loan program to provide up to 350 million Iraqi dinars to young entrepreneurs without the need for a guarantor, spokesperson Hassan Khawam announced recently.
This groundbreaking initiative is a collaboration between the Ministry, the International Labour Organization (ILO), the German Development Bank (KfW), and the Iraqi Company for Guarantees. It aims to empower aspiring business owners, particularly those who cannot secure the traditional requirement of a government employee guarantor.
Under the new program, the applicant's project itself will serve as the guarantee. To qualify, candidates must participate in an intensive, specialized training course lasting over a month. During this period, local, regional, and international experts will help them develop every aspect of their business plan, from technical specifics and site selection to customer relations. The loan is granted only after successfully completing this comprehensive development phase.
Khawam stated this program significantly expands on the Ministry's existing efforts, which include a smaller loan program (offering 20-50 million IQD) and the Mahan digital platform launched in 2023 to connect job seekers with employers. This new guarantor-free loan initiative marks a strategic step towards fostering self-employment and stimulating Iraq's private sector.
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