By John Lee.
The Central Bank of Iraq (CBI) has announced enhancements to two of its developmental lending initiatives, raising the financing ceiling for small and medium enterprises (SMEs) and expanding support for renewable energy projects.
According to the CBI, the measures are aligned with the National Banking Lending Strategy (2024-2029) and are intended to broaden access to credit, stimulate private sector activity, and advance financial inclusion across Iraq's provinces.
The first initiative increases the funding cap for micro, small, and medium enterprises, with the aim of expanding the pool of eligible entrepreneurs and businesses, narrowing the financing gap, supporting productive and service activities, and creating employment opportunities.
The second initiative develops and strengthens the renewable energy project financing programme, with a focus on expanding uptake of clean energy sources, reducing pressure on the national electricity grid, and cutting carbon emissions. The CBI said it will provide concessional financing instruments to enable citizens, private sector companies, and institutions to acquire and benefit from renewable energy systems, particularly solar power.
The CBI also announced new regulatory controls and mechanisms to ease borrowing conditions and simplify the process of obtaining finance. It said it will expand the number of banks participating in developmental lending, adopt new mechanisms to accelerate the processing of financing applications, and provide guidance and support to project owners.
(Source: Central Bank of Iraq)
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