Iraqi National Bank signs strategic partnership with IFC to stimulate economic growth

Iraqi National Bank signs strategic partnership with IFC to stimulate economic growth

Sunday 11 November 2018 07:48 PM

Iraqi National Bank signs strategic partnership with IFC to stimulate economic growthThe Iraqi National Bank signed an agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to facilitate the access of Iraqi National Bank customers from the corporate sector to international markets, boost trade and stimulate economic growth.

The two parties also signed a Memorandum of Understanding (IFC) to provide support to the National Bank of Iraq in the field of corporate governance.

The agreement and memorandum of understanding were signed at a special ceremony held on this occasion. The agreement and memorandum of understanding were signed by Ayman Abu Dheim, CEO of Al Ahly Bank of Iraq and Dalia Wahba, Director of the International Finance Corporation for the Levant region. The signing ceremony was attended by a number of representatives of the official Iraqi financial institutions, as well as clients of the bank from the corporate sector and members of its Board of Directors and members of its executive management.

According to the agreement, IFC will include the Iraqi National Bank as part of the International Business Operations Program, which will enable the Bank to provide indirect trade facilities with a total value of US $ 10 million for the corporate sector in the Iraqi market and IFC bailout. Thus, the Iraqi National Bank is the only Iraqi banking institution affiliated to the program.

“We view this partnership as a strategic step that reflects the confidence of the World Bank, a representative of the International Finance Corporation (IFC) in the Iraqi National Bank in particular and the Iraqi banking sector in general,” said Bassem Al Salem, Competitive banking services to its corporate clients, helping them to grow their business, import basic materials to Iraq and access global markets, which will play a pivotal role in promoting economic growth. ”

He added: “The Iraqi National Bank has been able to open up to the outside world during the past years, which enabled it to obtain ceilings to finance trade from a number of correspondent banks, which reflected positively on the volume of appropriations issued, which rose to more than 700 million dollars in 2017 “The bank’s strategic partner, Capital Bank, which has 62% of the capital of the National Bank of Iraq, has been commended for providing all forms of support since its contribution to the bank in 2005.”

“Cross-border trade has a positive impact on the local economy and contributes to the upgrading of the banking sector,” said Dalia Wahba.

“IFC will enable the NCB to expand its network of correspondents and support its business diversification strategy, which is important and sustainable in the long term.”

This initiative comes within the framework of the Global Finance Finance Program implemented by the International Finance Corporation with a budget of US $ 5 billion. The program works with more than 600 partner banks around the world, providing partial or full guarantees as well as covering potential risks.

Finance plays an important role in facilitating cross-border trade, filling gaps in the market between importers and exporters by providing guarantees to banks, and supporting the creation of new jobs and reducing poverty.

The agreement is part of IFC’s strategy to support the economies of developing countries affected by conflicts and help them recover from years of economic downturn.

As for the MoU, IFC provides support to the National Bank of Iraq in strengthening the corporate governance system to ensure that best practices are applied in this area and to strengthen governance and governance frameworks.