Beirut, Lebanon, May 21,
2019— IFC, a member of the World
Bank Group, today signed a memorandum of understanding (MoU) with the International
Development Bank (IDB), one of Iraq’s leading financial institutions,
to examine ways of expanding financial services to Iraq’s private sector.
The memorandum will help IDB as it further
strengthens its local footprint and increases its outreach to private sector
companies. The collaboration between IFC and IDB aims to make it easier
for bank clients to access financial services, like loans and trade financing,
ultimately helping them to expand and create jobs. The memorandum is considered
important in a country where businesses have limited access to finance.
“Despite the challenges facing Iraq's
banking sector, IDB has made investments that have contributed to the economic
and social development of Iraq,” said Ziad Khalaf Abed, IDB Chairman.
“We are confident that this MOU will offer new opportunities for IDB and
its clients. Working with IFC will equip us with banking services and trade
financing lines that will support the Iraqi private sector and contribute
to the nation-wide reconstruction effort. We are committed to maintaining
our position as the most innovative and technologically oriented bank in
The effort is part of IFC’s strategy
to support Iraq’s private sector and help the country diversify its economy,
lessening its reliance on the oil sector and state-run firms.
Dalia Wahba, IFC Country Manager in
Levant said: “Iraq is a priority country for IFC and we remain committed
to supporting its economic growth. The financial sector can play a critical
role in addressing pressing development challenges, and in helping Iraq
to diversify and modernize its economy.”
Over the last nine years, IFC has committed
$1.5 billion in Iraq, including mobilization, and its portfolio currently
stands at $330 million.
International Development Bank for Investment
and Finance (IDB) was established in 2011. It is now one of the leading
banks in Iraq, offering commercial banking services for retail and corporate
clients. Its main sponsors are members of the Ziyad Khalaf family. Since
2018, its shareholder base has expanded and currently includes more than
100 holders of common shares.
IFC—a sister organization of the World
Bank and member of the World Bank Group—is the largest global development
institution focused on the private sector in emerging markets. We work
with more than 2,000 businesses worldwide, using our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In fiscal year 2018, we delivered more than $23 billion in
long-term financing for developing countries, leveraging the power of the
private sector to end extreme poverty and boost shared prosperity. For
more information, visit www.ifc.org