Iraq’s Bank of Baghdad secures $25 million EBRD trade finance facility

Baghdad (IraqiNews.com) — The European Bank for Reconstruction and Development (EBRD) has awarded Bank of Baghdad with a $25 million trade finance facility to help Iraqi importers, exporters, and small enterprises improve their financing opportunities. The facility would provide Iraqi enterprises with better access to funding for cross-border commerce, allowing them to connect with regional and worldwide markets while also boosting the country’s private sector growth. The initiative will be supplemented by technical assistance provided by the European Commission, with a focus on boosting banking competence, improving financial services, and increasing access to financing, especially for women and other disadvantaged populations. The deal was signed by EBRD representatives, including Catarina Bjorlin Hansen, the bank’s Head of Iraq, and officials from the Bank of Baghdad including Ahmed Muallah, CEO of Bank of Baghdad. Bank of Baghdad, formed in 1992, is one of Iraq’s longest-standing private banks, offering commercial and corporate banking services across the nation. In 2009, Kuwait-based Burgan Bank became the company’s main stakeholder. The additional funding comes as Iraq aims to boost its private banking industry and increase access to foreign financial services for local firms, especially small and medium-sized enterprises looking to expand outside the home market. The EBRD combines funding, technical aid, and policy support to promote private-sector-led economies. Iraq became an EBRD shareholder in 2021 and has since acquired access to the bank’s investment activities. The new facility increases the EBRD’s role in Iraq’s financial sector, with trade financing considered a critical instrument for assisting Iraqi enterprises in accessing overseas markets and integrating more closely with regional and global supply chains.