IFC, a member of the World Bank Group, is signing two key agreements with the National Bank of Iraq today—a trade finance agreement to help its client businesses access global markets, boosting trade and spurring economic growth; and a memorandum of understanding to help the bank adopt better corporate governance practices.
Under the trade agreement, IFC and NBI will help the bank’s clients import crucial goods, including raw materials, spare parts, and food. The initiative is part of IFC’s $5 billion Global Trade Finance Program, which works with more than 600 partner banks worldwide, offering them partial or full guarantees and covering risks in transactions where cross-border trade is constrained.
Under the MOU, IFC’s Advisory Services will help the National Bank implement changes to a new corporate governance code that was launched by the Iraqi Central Bank last week and produced with IFC’s support.
Trade finance plays a key role in facilitating cross-border trade as it fills market gaps between importers and exporters by providing guarantees to banks. With a population of nearly 40 million, Iraq depends primarily on imports. Supporting trade will help create much-needed jobs and reduce the poverty rate, which currently stands at over 22 percent.
IFC has been working to improve corporate governance in Iraq since 2014, helping to establish Iraq’s first Institute of Directors (IIoD) among other initiatives, which provides a range of specialized environmental, social, and governance training to businesses. IFC’s corporate governance efforts in Iraq are made possible with support from the governments of Japan and Spain.
Original source: IFC
Published on 13 November 2018
