Iraq Launches $2.7bn Economic Stimulus Package

By John Lee.

Iraq has announced a package of economic stimulus measures totalling around IQD 3.5 trillion ($2.7bn), covering housing finance, industrial lending, contractor payments, agricultural dues, and an expanded generations fund.

The measures were agreed at a meeting chaired by Prime Minister Ali al-Zaidi and attended by the Minister of Finance, the Governor of the Central Bank of Iraq (CBI), senior advisers, and directors of government and private banks.

The decisions agreed at the meeting include:

• IQD 1 trillion ($763m) from existing CBI initiatives to be directed towards the real estate and housing sector
• At least IQD 1 trillion ($763m) in additional liquidity for state-owned Trade Bank of Iraq (TBI) and the Industrial Bank, to finance industrial projects and productive activities
• IQD 500 billion ($382m) from the Ministry of Finance to settle outstanding contractor payments
• IQD 500 billion ($382m) to clear dues owed to farmers in support of the agricultural sector
• IQD 500 billion ($382m) in additional funding for the Generations Fund, bringing its total balance to IQD 1.5 trillion ($1.1bn)

Al-Zaidi called for swift implementation of the decisions, with coordination between the Ministry of Finance, the CBI, and relevant banks. The CBI said it stood ready to support banking stability and to provide the monetary and financing environment needed to underpin economic activity.

(Source: Prime Minister's Office)

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