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Central Bank Governor Announces Major Initiative to Boost Financing for Industrial Projects in Iraq

Economy News – Baghdad

Ali Al-Alaq, the Governor of the Central Bank, announced the launch of an initiative aimed at financing industrial projects, emphasizing that financial stability is as crucial as political and security stability.

During a discussion at the Iraq Energy Conference, Al-Alaq articulated that the initiatives of the central bank serve as instrumental tools for economic development and motivation. He stated, “These are unconventional policies designed to bolster the overall economy.” Al-Alaq acknowledged that the significant size of the infrastructure underdevelopment represents a major challenge.

He elucidated the central bank’s role in fostering economic stability, which is closely linked to energy factors that support factories and companies. He further emphasized that the bank is actively involved in supporting and financing a range of projects, including renewable energy initiatives, through both direct and indirect support.

Al-Alaq underscored, “Monetary and financial stability is paramount, and should not be considered less important than political and security stability.” He continued, “The Central Bank has initiated various programs to finance real estate and small to medium-sized enterprises. Since 2016, projects worth 13 trillion dinars have been funded, thereby contributing to economic sustainability, in addition to the allocation of 1 trillion dinars to incentivize the purchase of solar energy units.”

Furthermore, he indicated that arrangements are in progress to finance industrial projects, in collaboration with the Iraqi Bank for Trade and the Industrial Bank. He noted that the liquidity available to the Iraqi Bank for Trade will be directed toward supporting these initiatives, alongside the funds from the Industrial Bank, aiming to launch a comprehensive initiative for financing industrial projects soon.

Al-Alaq highlighted the Council of Ministers’ endorsement of enhanced cooperation among government banks with surplus financial capacity to fund industrial projects via the Industrial Bank, the entity specialized in this domain, affirming that the launch of this significant initiative is imminent.

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