Lenders Rip Off Small Iraqi Businesses

He added, "The new reform package adopted by the government of Prime Minister Haider al-Abadi aims to mend this deficiency by supporting local investments and projects.”

Al-Monitor contacted four private banks for comment, but all four declined to speak. One private bank manager told Al-Monitor on condition of anonymity, “The problem lies in the lack of mechanisms guaranteeing the settlement of sums granted as loans to merchants in the event of the borrower’s violation of the terms of the contracts signed with them. The Iraqi authority is weak and unable to guarantee the rights of banks.”

There does not seem to be a clear plan for the Iraqi economy. Moreover, the political turmoil that has plagued Iraq for more than a decade makes it very difficult for banks to support the local economy, especially small and medium enterprises.

(Iraqi dinar image via Shutterstock)

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