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Shafaq News/ The Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed, on Monday, the bank's aspiration to build a partnership with the German Institute for International Cooperation (GIZ), indicating that it has reached advanced stages in building a national strategy for lending.
This came during a speech by Al-Alaq at a conference held by the German Foundation for International Cooperation regarding the needs and priorities of actual financing for small and medium enterprises in Iraq, and was attended by the Shafaq News Agency correspondent.
GIZ is now one of the largest development agencies in the world and was established on January 1, 2011, through the merger of three German international development organisations.
Al-Alaq said, "The German Foundation for International Cooperation, which is today one of the largest institutions in the world and operates on the basis of a model that aims to achieve a balance between economic development, social integration and environmental protection," explaining that "this comes from the role of the Central Bank of Iraq in achieving economic stability." Contributing to growth, prosperity and job creation through unconventional monetary policy, which is one of the policies pursued by some central banks in the world in order to drive economic growth.
He added that "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 field of agriculture, industry and services, which total more than 12 billion dollars, constituted 30% of the total credit in the private sector and for the purpose of strengthening this Direction The Central Bank is building a national strategy for lending, which has reached advanced stages in terms of design and is expected to be announced in early 2024.
He continued, "This strategy aims to facilitate bank borrowing in all its forms in light of diagnosing weaknesses and challenges as well as opportunities and strengths available," stressing "the continuation of supporting small and medium enterprises, which are the backbone of economic projects, revitalizing the private sector, and reducing unemployment and poverty."
Al-Alaq said, "Our experience through the Small and Medium Enterprises Financing Initiative over the past years has shown that funding alone is not sufficient, but it is necessary to strengthen sectors, skills and training, and create a suitable environment for launching projects. This is what we are seeing from international organizations that have long experience in this field, including the German Cooperation Foundation." ".
And the governor of the Central Bank of Iraq added, "We launched during the past days the Al-Riyadah Bank project and we are working to achieve it through Iraqi banks, which will be a starting point for financing small and medium projects."
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