National Bank of Iraq sings a strategic partnership with IFC to support Iraq’s Trade Sector and Boost Imports and Spur Economic Growth
PRESS RELEASE from NBI
Baghdad, Iraq 11/11/2018: National Bank of Iraq, one of the leading banks in Iraq and the Levant region singed a strategic partnership with International Finance Corporation – IFC, a member of the World Bank Group, is signing a trade finance agreement with the National Bank of Iraq today to help its client businesses access global markets, boosting trade and spurring economic growth.
Under the agreement, IFC and NBI will help the bank’s clients import crucial goods, including raw materials, spare parts, and food. The initiative is part of IFC’s $5 billion Global Trade Finance Program, which works with more than 600 partner banks worldwide, offering them partial or full guarantees and covering risks in transactions where cross-border trade is constrained.
“This partnership with IFC will help us provide a competitive range of banking services to our trading clients,” said Ayman AbuDhaim from NBI. “This will help them grow and bring in vital supplies to the country to boost development and growth in the long term.”
Trade finance plays a key role in facilitating cross-border trade as it fills market gaps between importers and exporters by providing guarantees to banks. With a population of nearly 40 million, Iraq depends primarily on imports. Supporting trade will help create much-needed jobs and reduce the poverty rate, which currently stands at over 22 percent.
“Cross-border trade has a positive impact on economies and also helps raise the bar for the banking sector,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa. “The facility will also enable NBI to expand its correspondent network and support its business diversification strategy, which is vital for long-term sustainability.”
The agreement is part of IFC’s wider strategy to support the economies of fragile and conflict-affected states, helping them recover from years of severe decline.