Economy News – Baghdad
The Minister of Labor and Social Affairs, Ahmed Al-Asadi, has announced a significant increase in the value of loans designated for supporting small income-generating initiatives. He emphasized that the disbursement of these loans is now contingent upon the employment of workers who are registered with social security, thereby enhancing the accountability and viability of these projects.
In a televised discussion, Al-Asadi indicated that “the ministry has implemented stricter auditing processes and raised the loan limits to transition these funds from mere financial assistance into tangible initiatives that generate real job opportunities.” He acknowledged the persistent challenges posed by the emergence of fraudulent projects but assured that inspection teams are actively monitoring compliance and producing regular reports to counteract such issues.
Previously, loans ranged from 8 to 10 million dinars; they now extend to 20, 30, and 50 million dinars, depending on the nature of the project. Specifically, beneficiaries receiving a loan of 20 million dinars must employ at least one worker, while those obtaining 30 million must hire two workers, and recipients of 50 million must create jobs for three workers, all of whom must be officially registered with the Social Security Department.
Loan applications can be submitted through the (profession) platform or directly at the ministry’s office or the minister’s office, with a required sponsor. Specialized committees will review the projects to validate their legitimacy and operational status.
Al-Asadi noted that over 200,000 loans have been issued in the past two years, contributing to the creation of nearly 400,000 jobs, while ensuring that the hired individuals are registered with social insurance.
On the issue of fraudulent projects, Al-Asadi explained that some beneficiaries have attempted to deceive the system to obtain loans without establishing a legitimate business, often by utilizing rented or borrowed premises from acquaintances to mislead inspection committees.
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