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Today, Monday, the Central Bank of Iraq announced a direction to build a national strategy for lending that will come into effect at the beginning of next year 2024, and while stressing that Riyada Bank will be a base for launching and financing small and medium enterprises, he indicated that its total initiatives amounted to more than 12 billion dollars.
Governor Ali Al-Alaq said, in a speech during a conference held by the German Agency for International Cooperation (GIZ) on the actual financing needs and priorities for small and medium enterprises in Iraq, “based on the role of the Central Bank of Iraq in achieving economic stability, contributing to growth and prosperity, and creating job opportunities through unconventional monetary policy.” Which has been started since 2015, and it is one of the policies pursued by some central banks in the world in order to advance economic growth. The model that aims to achieve a balance between economic development, social inclusion and environmental protection.
Al-Alaq added, “The initiatives of the Central Bank of Iraq, which are distributed between the initiative to develop small and medium projects, housing loans, renewable energy and other economic projects in the agricultural, industrial and service fields, which total more than $ 12 billion, accounted for 30 percent of the total credit in the private sector.”
He explained, “The Central Bank is moving towards building a national strategy for lending, and it has reached advanced stages in terms of design, and it is expected that it will enter into force in early 2024, and aims to facilitate bank borrowing in its various forms in light of a diagnosis through weaknesses and challenges as well as opportunities and points.” The force available to end this formulation is realistic.”
And he stressed, “The Central Bank will continue to support small and medium enterprises, which are the backbone of economic projects, revitalize the private sector, and reduce unemployment and poverty.”
And he continued, “The experience of the Central Bank during the initiative to finance small and medium enterprises in the past years indicated that financing alone is not sufficient, but rather sectors, skills and training must be strengthened and an environment suitable for the launch of projects must be created, and this is what we see from international organizations that have long experience in this field.” Including the German Cooperation Organization.
He pointed out, "The launch of the Al-Riyada Bank project during the past days and work to achieve it through Iraqi banks, which will be a basis for launching and financing small and medium enterprises."
And he added, "Monetary policy tools contribute to overcoming financial crises," calling on government and private banks to "strengthen their efforts in this regard."
Al-Alaq praised the “organized efforts that try to enhance the cooperation of projects that serve development.”
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