New State-Funded Investment Bank

By John Lee.

Iraq plans to establish a state-funded investment bank to help finance major infrastructure projects and steer money towards private sector companies.

Sami Al Araji, chairman of the National Investment Commission (NIC), told Reuters:

We need this [state-funded investment bank] to push forward the economy ... Our existing commercial banks do not have the skills or experience.

He added that he proposal is part of a series of planned amendments to investment laws which will be submitted to parliament.

The new Investment and Development Bank of Iraq would receive 1 percent of annual state budget allocations over seven years under a proposal that will be sent to parliament for approval.

That arrangement, if it goes ahead, could eventually provide the new bank with over $10 billion to invest.

(Source: GulfNews, Reuters)

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