Central Bank of Iraq Launches Initiative to Finance Industrial Projects
In a significant announcement, Ali Al-Alaq, the Governor of the Central Bank of Iraq, revealed the initiation of a new program aimed at financing industrial projects. He emphasized that achieving financial stability is equally as vital as maintaining political and security stability.
During a dialogue session at the Iraq Energy Conference, Al-Alaq remarked, “The initiatives undertaken by the Central Bank serve as mechanisms to stimulate development and motivate economic growth. These are unconventional policies designed to support macroeconomic stability.”
He further elaborated that the central bank is recognized as one of the global banking institutions implementing unconventional monetary policies. Al-Alaq highlighted that the extensive deficits in infrastructure development pose a significant challenge, underscoring the central bank’s commitment to fostering economic stability. He noted that energy factors play a crucial role in influencing the economic landscape by providing support to factories and companies.
Al-Alaq indicated that the central bank actively supports and finances a variety of projects, including those centered around renewable energy, through both direct and indirect financial assistance. He reiterated the critical importance of maintaining monetary and financial stability, stating that “there is no less importance than political and security stability.”
The Central Bank has already launched multiple initiatives aimed at financing real estate projects as well as small and medium enterprises. Since 2016, projects amounting to 13 trillion dinars have been funded, aiding in the sustained momentum of the economy. Additionally, 1 trillion dinars have been allocated to encourage citizens and businesses to invest in solar energy units.
Looking ahead, Al-Alaq mentioned that there are ongoing arrangements to facilitate financing for industrial projects in collaboration with the Iraqi Bank for Trade and the Industrial Bank. He noted that the liquidity available from the Iraqi Bank for Trade would support these efforts, along with funding from the Industrial Bank, with plans for a substantial initiative focused on industrial project financing expected to launch imminently.