The Central Bank reduces the interest rate on “solar energy” loans to 2.5%
The Central Bank reduces the interest rate on “solar energy” loans to 2.5%
2026-01-29
The Central Bank set the interest rate for the solar energy financing initiative on Thursday, and indicated that it had put in place simplified procedures to encourage citizens to benefit from the initiative. Rafal Jamil, Director of Initiatives at the Central Bank, stated during her participation in the Iraq Development Platform that “the Central Bank has launched a number of initiatives, including the initiative to finance the purchase of solar panels,” noting that “the bank has worked to simplify procedures and set the interest rate to encourage citizens and companies to benefit from it.”
She also explained that “the Central Bank set the interest rate at the beginning of the initiative, but citizens and companies working in the energy sector complained about its high rate,” indicating that “the interest rate was reconsidered to not exceed 2.5%, while the Central Bank’s interest rate reached 0.5%, compared to the current monetary policy rate of 5.5%.”
She added that “the turnout for the initiative is still very weak,” noting that “the turnout of government banks to participate in the initiative was limited, at a time when we rely on these banks greatly, since most citizens receive their salaries through them.” She continued that “the Central Bank cannot force banks to participate in the initiative,” stressing “the need for banks to assume their role and responsibility in supporting the energy sector, whether in terms of financing factories and companies or home projects.”
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