The signing of a strategic partnership between the Iraqi National Bank and the International Finance Corporation to support the Iraqi commercial sector
11/12/2018

The Iraqi National Bank and the International Finance Corporation (IFC), a member of the World Bank Group, have signed a commercial financing agreement to facilitate the access of Iraqi National Bank customers from the corporate sector to the international markets, in order to boost trade and stimulate economic growth.

IFC supports the National Bank of Iraq in corporate governance. The agreement and the memorandum of understanding were signed at a special ceremony held under the patronage of His Excellency Mr. Ali Mohsen Al Alaq, Governor of the Central Bank of Iraq.


The agreement and memorandum of understanding were signed by Ayman Abu Dheim, CEO of the National Bank of Iraq, and Dalia Wahba, Director of the International Finance Corporation for the Levant region.

The signing ceremony was attended by a number of representatives of the official Iraqi financial institutions, as well as clients of the bank from the corporate sector and members of its Board of Directors and members of its executive management.

According to the agreement, IFC will include the Iraqi National Bank as part of the International Business Operations Program, which will enable the Bank to provide indirect trade facilities with a total value of US $ 10 million for the corporate sector in the Iraqi market and IFC bailout.

Thus, the Iraqi National Bank is the only Iraqi banking institution affiliated to the program.

"We view this partnership as a strategic step that reflects the confidence of the World Bank, a representative of the International Finance Corporation (IFC) in the National Bank of Iraq in particular and the Iraqi banking sector in general," said Bassem Al Salem, Deputy Chairman of the National Bank of Iraq.

The partnership will enable the National Bank of Iraq to offer a competitive range of banking services to its corporate clients, helping them grow their businesses, import basic materials to Iraq and access global markets, which will play a pivotal role in boosting economic growth. "

He added: "The Iraqi National Bank has been able to open up to the outside world during the past years, which enabled it to obtain ceilings to finance trade from a number of correspondent banks, which reflected positively on the volume of appropriations issued, which rose to more than 700 million dollars in 2017

"The bank's strategic partner, Capital Bank, which has about 62% of the capital of the National Bank of Iraq, has been commended for providing all forms of support since its participation in the Bank in 2005."

For her part, Ms. Dalia Wahba said: "Cross- Positive impact on the local economy as well A contribute to raising the level of the banking sector.

" "IFC will enable the NCB to expand its network of correspondents and support its business diversification strategy, which is important and sustainable in the long term."

This initiative comes within the framework of the Global Finance Finance Program implemented by the International Finance Corporation with a budget of US $ 5 billion. The program works with more than 600 partner banks around the world, providing partial or full guarantees as well as covering potential risks.

Finance plays an important role in facilitating cross-border trade, filling gaps in the market between importers and exporters by providing guarantees to banks, and supporting the creation of new jobs and reducing poverty.

The agreement is part of IFC's strategy to support the economies of developing countries affected by conflicts and help them recover from years of economic downturn.

As for the MoU, IFC provides support to the National Bank of Iraq in strengthening the corporate governance system to ensure that best practices are applied in this area and to strengthen governance and governance frameworks.

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