ERBIL, Kurdistan Region of Iraq -  The European Bank for Reconstruction and Development (EBRD) on Sunday announced its first investment in Iraq, providing a $100-million trade finance facility to the National Bank of Iraq (NBI) to support businesses in import and exports.

 “This partnership with the EBRD marks a pivotal milestone in NBI’s growth journey and in Iraq’s broader financial landscape. Through this facility, we aim to strengthen the flow of trade, empower Iraqi businesses, especially MSMEs, and open new channels that connect Iraq to global markets with greater confidence and stability,” Ayman Abu Dhaim, CEO of the National Bank of Iraq, was cited as saying by EBRD.

“It reflects our continued commitment to driving economic development and supporting Iraq’s integration into the regional and international economy,” he added. 

The new trade facility is expected to boost Iraq’s import and export activities, the EBRD said in a statement, adding that it will support NBI, Iraq’s largest private bank, in issuing guarantees and offering cash advances for imports, exports, and local distribution of goods under EBRD’s Trade Facilitation Programme (TFP).

It will also promote trade integration in the country by mitigating political and commercial payment risks in international transactions in countries where EBRD works.

“We are proud to sign our first investment in Iraq and to partner with the National Bank of Iraq. This facility represents a major milestone in supporting the country’s economy by expanding access to trade finance, fostering integration with international markets, and strengthening the resilience of local businesses. EBRD Head of Iraq, Catarina Bjorlin Hansen, said.

We look forward to playing a key role in building robust financial institutions and promoting sustainable economic growth in Iraq,” Hansen added.

EBRD’s trade facility program, launched in 1999, aims to promote international trade between economies where the bank is active with guarantees and short-term loans.

The European bank began working in Iraq in September, focusing on promoting local businesses and fostering long-term growth to contribute to the country’s economic transformation.