2012-05-05USAID inject 26 million dollars to finance projects
Baghdad, Expected value of loans provided by the company for the financing of small and medium enterprises which founded the United States Agency for international development (USAID), $ 26 million and will provide 1200 jobs.
MD said to IOEC to finance projects of small and medium-sized enterprises and Sam Nuri agency/JD/"loans from the company to develop or expand small businesses would total of up to 26 million dollars or 30180 billion dinars and will result in the provision of more than 1,200 new jobs."
"Iraqi businesses need huge amounts of money that allows them to buy new equipment and expand its activities, and it will come the day you begin these projects enter the competition at the international level," he said, adding that the Iraqi company helping to fund these purchases through bank loans, which provide increasingly from proceeds of loans which are repaid.
"Nuri" that banks are lending program because it's stable and long-term programme, and Iraqis eligible to borrow from the loan with fixed interest rate and low is 10 percent, a rate much lower than the market interest ranging from 12 to 14 percent.
He noted that nine Iraqi banks involved in financing programme of the company's small-and medium-sized enterprises and Gulf Bank, commercial bank and commercial bank Sommer Ashur International Bank North, Iraqi Middle East Bank for investment, the Bank of Baghdad, the Iraqi National Bank, the Bank for investment and development of Mosul, Basrah International Bank for investment.
The Iraqi company for financing small and medium-sized enterprises was founded in May 2009 with an initial grant amounted to six million dollars from the US Agency for international development within the program "trade Tijara" for economic development in the provinces, and the company was designing a programme to assist in the expansion of private sector activities in Iraq as called for by the Convention framework passes signed between the United States and Iraq.
And use of funds by borrowers to banks to finance new loans, led to session of these funds, enabling the company to grant new loans as well as additional funds contributed by the banks, which makes the value of a grant from the US Agency for international development of seven million dollars to lend 1374 projects average financing amounting to 19,000 dollars per loan loans exceeding $ 26 million USD.
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