2 days ago
Supporting Displaced Iraqis with Loans and Training
By John Lee.
Central Bank of Iraq (CBI), in cooperation with the International Labour Organization (ILO), the Iraqi Company for Bank Guarantees (ICBG), and several Iraqi banks, has provided significant financial and training support to displaced persons and host communities in Nineveh and Duhok governorates under the Afaaq programme. The initiative has since been replicated in Basra and Muthanna under the "Green Business Promotion" programme.
Through this partnership, loans totalling approximately 3.8 billion Iraqi dinars were extended to 284 borrowers, 27% of whom were women. The ILO guaranteed $1 million (35% of the total funding), with the Iraqi Company for Bank Guarantees covering the remaining 65%. The loans were provided through three participating banks: Al Ahli Iraqi Bank, Middle East Bank, and Jihan Islamic Bank.
The programme also delivered training to 2,981 entrepreneurs - both new and existing - under the "Start Your Business" and "Improve Your Business" schemes, as well as financial literacy programmes, creating 1,612 jobs since its launch in 2021. The repayment rate among displaced Iraqi borrowers under Afaaq has reached 100% after more than two and a half years.
The CBI noted that the success of this model has encouraged similar initiatives, including partnerships with Germany's KfW Development Bank, and reaffirmed its commitment to overcoming obstacles facing developmental programmes by applying lessons learned from previous experience.
(Source: CBI)
