ERBIL, Kurdistan Region – The decline in job opportunities and increasing rate of unemployment has impelled the Iraqi government to allocate $1 billion to small businesses initiatives in a bid to create more jobs in the private sector, according to the Regional Trade Bank (RT Bank).
Over the past three years, nearly 10 billion dinars ($8.36 million) out of the amount dedicated by the Iraqi Central Bank have been lent for business initiatives by four private banks in the Kurdistan Region.
People who want to establish businesses can apply for short-term or long-term loans with the amount depending on the magnitude of the business.
Shadi Faqe is the owner of La Dolce Vida a small business in Erbil. She benefited from the federal government’s loan initiative.
“You have expectations and allocate some money for whatever you do. You realize that the funds you have dedicated for the job you have started are insufficient,” she told Rudaw on Wednesday.
“I had some money and jewelry which I used to start my business. But it wasn’t adequate. That is why I thought about something else which would help me continue my business and that was a bank [loan],” Faqe added.
Now, Faqe runs the cafe-restaurant where she says she employees 18 people by borrowing 50 million dinars with a 5-percent, 2-year fixed interest rate.
The government’s move to help people set up their own businesses has made a difference in the lives of many. Creating job opportunities is a main consideration for a private bank loan.
Hamila Gardi, the executive manager at RT, has made loans in the Kurdistan Region and is looking to issue more for business initiatives.
“We have issued 152 loans which have created more than 650 job opportunities. I aim to issue 10 billion [dinars in loans] and thereby create 1,500 employment opportunities for the people of Iraq and Kurdistan,” Gardi said.
The Kurdistan Region is emerging from several crises including the Islamic State (ISIS) conflict, IDP influx, and global crash in oil prices.
With governmental reform to address a bloated public sector and diversifying its private sector, the Kurdistan Region hopes to return to the economic boom it experienced 10 years ago.
Reporting by Dlnia Rahman
