[ltr]2023.06.08 - 19:45[/ltr]
Baghdad - Nice
On Thursday, the Iraqi Company for Financing Small and Medium Enterprises affiliated to the Association of Private Banks counted the loans of funded projects and the job opportunities resulting from them, while confirming that it provided 10,000 job opportunities through 7,500 loans.
The director of the company, Muhammad al-Handal, said in a statement to the official agency, followed by “NAS”, (June 8, 2023), that “holding conferences is very important regarding medium and small projects, to come up with solutions,” noting that “most small projects are not supported, because there is no guarantee.” This is sufficient for many reasons, including the absence of a complete economic study and the absence of financial schedules, so there will be risks and difficulty in financing.
Al-Handal added, "The company financed, with an amount of $95 million, more than 7,500 loans, and provided more than 10,000 job opportunities."
He pointed to "the importance of establishing a loan guarantee company, through the initiative of the Central Bank Governor, which will contribute significantly to financing small and medium enterprises."
He explained, "The participation of insurance companies in the lending process will contribute positively to providing job opportunities for young people," stressing that "if the appropriate environment and a full credit circle are available, there will be an increase in the number of projects."
And he stated, “During the past year 2022, and after obtaining the approval of the Central Bank for direct lending, the company contributed to lending more than 250 projects within the credit portfolio, which amounted to two billion dinars, which is not at the required level, but if the auxiliary factors for the lending process are available, there will be a large number and increase in the credit portfolio.” ".
Earlier, the Central Bank of Iraq announced its intention to build a national lending strategy that will come into effect early next year 2024, stressing that Riyada Bank will be a base for launching and financing small and medium enterprises.
[You must be registered and logged in to see this link.]