Association of Iraqi Private Banks Conducts Seminar «Financing Small and Medium Enterprises»

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2019/02/12 2:07 am




The Association of Iraqi Private Banks held a seminar on "Financing Small and Medium Enterprises" under the auspices of the Tamkeen Fund for Community Initiatives (Tamkeen) during the fourth day of the Baghdad International Book Fair 2019.

The seminar started with the participation of a member of the Central Bank's Small and Medium Enterprises Initiative Loans to the Middle East Bank Mohammed Adib and the director of credit in the Bank of Ashur International Alaa Fayeq and the representative of the National Bank Hadeel Taha, and the focal points of the meeting the Director Commissioner of the Iraqi Guaranties Company Rali Saleh.

During the meeting, a member of the Bilal Qasim Mohammed Finance Initiative Committee pointed out that in 2018 there was a great tendency for banks to participate in the initiative of financing the small and medium projects launched by the Central Bank, where the loans granted by them 71 billion dinars and now the amount of loans granted 80 billion dinars.

Mohammed pointed out that the initiative has been able to fund 2500 projects to date and the number is increasing.

He pointed out that there is a large turnout by private banks to participate within the initiative and the number of banks more than 33 private banks involved in the initiative to finance small and medium enterprises as well as government banks, noting that the banks are working to give opportunities for projects already exist on the ground with a feasibility study Of the project.

He added: We believe in the future through the direction of banks and the granting of credit access to advanced stages in the project during 2019, especially after the talk of the Governor of the Central Bank on the possibility of raising the ceiling of funding for large projects and feasibility study of up to 5 billion dinars.

For its part, the Managing Director of the Guarantees Company, Rali Saleh, said that when the initiative was launched in 2016 there was a real halt to the lending market for small and medium enterprises, but after the launch of the initiative by the Central Bank we have seen a large turnout to take advantage of loans.

Al-Saleh said that the Iraqi company for guarantees during the ten years spent 133 billion dinars, while the initiative of financing small and medium-sized projects have achieved a rate of disbursement of loans during the years 80 billion dinars, which is a major achievement and a clear success of the initiative.

She explained: The Central Bank continues to promote this initiative and has future plans to deliver the initiative to all applicants for the establishment of small and medium-sized enterprises. "This seminar is an opportunity to clarify ideas and some things that are not understood by citizens regarding the SME financing mechanism launched by the Central Bank," said Mohammad Adib, director of loans for Middle East Bank.

Adib said that small and medium-sized enterprises are unique to the rest of the projects registered in the country. For example, the financing of the company is different from a carpenter's workshop, so all lenders and banks are required to study the specificity of the projects submitted through the feasibility study and to know the financial returns that will achieve the project. .


https://www.almuraqeb-aliraqi.org/2019/02/12/128229/