Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Login

Not a member Register   Forgot Password
or connect using
 

Email

 

Rudaw

Business

Small businesses in Kurdistan could see boost from Iraqi loan project

By Rudaw 12/9/2017
The Central Bank of Iraq .Rudaw photo.
The Central Bank of Iraq .Rudaw photo.
ERBIL, Kurdistan Region – In a bid to boost the economy, the Iraqi Central Bank has earmarked $5 billion for small business loans to be issued through government and private banks. The loans are interest-free and borrowers are charged only for services amounting to 5.5 percent of the total loan.
 
"We provide loans more for those projects that have stopped work due to the economic crisis or have problems funding projects. For new projects, we have to carry out benefit investigations to make sure to what extent the project will become successful when it goes into effect," said Rihab Mati Hannah, head of Mosul Bank’s loans department.
 
"It is better for us to support those projects that have already started, even those that have started a year ago now," Hannah added.
 
Some of the Kurdistan Region's banks have already applied to have share in the sum earmarked by the central bank.
 
Cihan Bank and Kurdistan International Bank have each received funds amounting to two billion Iraqi dinars ($1.7 million). RT Bank and Erbil Bank are in the process of completing legal measures to also receive a share. 
 
"These kinds of loans are very beneficial for society, serving small and mid-sized businesses. At this time, these businesses need a party to support them to escape a crisis they suffer," Noora Rafid, a Kurdistan International Bank representative, told Rudaw.
 
Rafid added the largest loan they offer is 50 million Iraqi dinars ($42,700). 
 
"If you need six million, 10 million or 15 million, you could receive it," she said, adding "the loan will be in line with how much the borrower and the project need."
 
For more information, she urged people to visit the bank. 
 
The Kurdistan Region has been suffering an economic crisis since early 2014 due to a triple shock – budget cut from Baghdad, the ISIS war, and a dramatic drop in oil price, the Region's main source of revenue. 
 
In this tough economic environment, the number of new businesses in the Kurdistan Region has dropped to a near 10-year low. Only 1,233 new firms were registered in 2016, down from 3,423 in the boom year of 2013.

Comments

 
Chris Gal | 12/9/2017
I am suspicious of the timing of this announcement,,,,so close to the referendum
Post a New Comment
Comment as a guest or Login for more enhanced interactive experience
Tags :

Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

Mark | 9/26/2017 6:27:55 AM
Israel didn't cause the wars, neither will Kurdistan. The troublemakers are the islamist Arab countries who don't accept freedom for other nations
Zaxoyî86 | 9/26/2017 8:14:18 AM
This racist Arab tries to flatter the Kurdish nation, by claiming that Kurds have all rights in Iraq, while his MP colleagues try to topple Fuad...
Iraqi MP: Like Israel, Kurdistan will cause years of war
| 21 hours ago | (23)
Joker | 9/26/2017 5:23:42 AM
They are "deeply dissapointed" in the "non-binding" referendum.... A democratic voice for godssake of A nation, calling for their basic rights. They...
H Michael Fink | 9/26/2017 7:22:58 AM
The US State Department does not reflect the opinion of the American People who support freedom and independence for Kurdistan and the Kurdish People...
US: Our 'historic relationship' with Kurdistan won't change despite referendum
| 10 hours ago | (9)
A Kurd in exile | 9/26/2017 4:45:11 AM
After everything that they did to stop the Kurds from holding the referendum for independence and they failed, the Mongolian Turks, along with their...
imam mahdi fact checker | 9/26/2017 7:18:06 AM
erdogan always usually hails kurdish media. you must mean hails not halts!!
Turkey halts Rudaw broadcast on Turksat satellites
| 21 hours ago | (9)
in my opinion | 9/26/2017 7:15:22 AM
they donkey in syria had big plans to expand his "empire" with help of maliki donkey number 2 now they are both on 5-2 diet waiting for room service...
American witness to signing of Iraq's constitution believes many articles violated
| 7 hours ago | (1)

Elsewhere on Rudaw

US Congressman: 'I firmly believe in Kurdish right to self-determination' 1 hour ago |

US Congressman: 'I firmly believe in Kurdish right to self-determination'

"the Kurdish people face additional threats from more
0.25 seconds