Beirut, Lebanon, May 21, 2019 — IFC, a member of the World Bank Group, today signed a memorandum of understanding (MoU) with the International Development Bank (IDB), one of Iraq’s leading financial institutions, to examine ways of expanding financial services to Iraq’s private sector.
The memorandum will help IDB as it further strengthens its local footprint and increases its outreach to private sector companies. The collaboration between IFC and IDB aims to make it easier for bank clients to access financial services, like loans and trade financing, ultimately helping them to expand and create jobs. The memorandum is considered important in a country where businesses have limited access to finance.
“Despite the challenges facing Iraq's banking sector, IDB has made investments that have contributed to the economic and social development of Iraq,” said Ziad Khalaf Abed, IDB Chairman. “We are confident that this MOU will offer new opportunities for IDB and its clients. Working with IFC will equip us with banking services and trade financing lines that will support the Iraqi private sector and contribute to the nation-wide reconstruction effort. We are committed to maintaining our position as the most innovative and technologically oriented bank in Iraq.”
The effort is part of IFC’s strategy to support Iraq’s private sector and help the country diversify its economy, lessening its reliance on the oil sector and state-run firms.
Dalia Wahba, IFC Country Manager in Levant said: “Iraq is a priority country for IFC and we remain committed to supporting its economic growth. The financial sector can play a critical role in addressing pressing development challenges, and in helping Iraq to diversify and modernize its economy.”
Over the last nine years, IFC has committed $1.5 billion in Iraq, including mobilization, and its portfolio currently stands at $330 million.
About IDB
International Development Bank for Investment and Finance (IDB) was established in 2011. It is now one of the leading banks in Iraq, offering commercial banking services for retail and corporate clients. Its main sponsors are members of the Ziyad Khalaf family. Since 2018, its shareholder base has expanded and currently includes more than 100 holders of common shares.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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