The Trade Bank of Iraq (TBI) has signed a loan agreement with Commerzbank in order to support small and medium sized projects in Iraq.
The Loan Agreement was concluded as a result of TBI being approved by Germany’s export credit insurer Euler Hermes as a borrower for medium and long term Export Credit Agency (ECA) financing with repayment terms of up to five years.
Under the deal, TBI aims to support public and private sector projects up to a scale of €100 million ($115.30 million) and facilitate financing of export contracts for products, materials and machines. The agreement will focus on the financing of export contracts awarded to Commerzbank clients in Germany and other European countries.
The newly signed agreement allows TBI to source and secure funding for projects in Iraq, in order to create new opportunities for employment and accelerate the country's economic growth and reconstruction.
TBI was established in July 2003 in order to support the reconstruction of Iraq through facilitating international trade, with the institution playing a pivotal role in sourcing and securing funding for projects. In 2017, its first international office was established in UAE. Following this, several agreements with international banks and finance firms have been signed to help fund infrastructure projects inside Iraq.
Faisal Al Haimus, chairman and president of Trade Bank of Iraq, commented on the deal: “This loan agreement will enable us to provide support for SMEs in Iraq as they have a big role to play in the economic upturn in Iraq by driving the growth.”
In addition, Cathrin Karpinski, head of international markets export and agency finance of Commerzbank, said: “This Basic Loan Agreement is a great achievement which will contribute to strengthen the trade relations between Iraq and Germany.”
Source: Trade Arabia