Central Bank of Iraq and ILO replicate AFAC guaranteed lending for IDPs in Basra and Muthanna, reporting 284 borrowers and 100% repayment

The Central Bank of Iraq published an update on cooperation with the International Labour Organization (ILO), the Iraqi Company for Bank Guarantees and participating banks under the AFAC programme supporting internally displaced persons (IDPs) and host communities in Nineveh and Dohuk, and its replication in Basra and Muthanna through the Green Business Promotion Program. The release highlights guaranteed lending, business training and job creation results, with the guarantee structure positioned as a solution to sponsorship constraints faced by borrowers and banks. Across the programme, lending reached 284 borrowers, with women representing 27%. The ILO provided guarantees of USD 1 million, representing 35% of the financing amount, while the Iraqi Company for Bank Guarantees covered 65%, with loans channelled through the National Bank of Iraq, the Middle East Bank and Jihan Islamic Bank. The initiative also trained 2,981 new and existing entrepreneurs through the Start Your Business, Improve Your Project and financial literacy programmes and reports 1,612 job opportunities created over stages running from the 2021 launch through full loan disbursement, with a 100% repayment rate for displaced Iraqis after more than two and a half years; the experience is also cited as enabling additional partnerships, including with the German Development Bank (KfW). The central bank indicated it will continue addressing obstacles to development programme implementation by drawing on lessons and challenges identified during delivery.