The Central Bank of Iraq announced two financing measures under its development initiatives, aligned with the national strategy for bank lending for 2024 to 2029. It will raise the ceiling of its micro, small and medium-sized enterprise financing initiative by boosting bank liquidity so lenders can extend more credit, and it will strengthen its renewable energy financing initiative to support wider use of clean energy systems, particularly solar. The package is paired with new rules and mechanisms intended to relax borrowing conditions and make access to finance easier. The MSME measure is aimed at expanding the pool of entrepreneurs and project owners able to obtain funding, narrowing financing gaps, supporting productive and service activities, and creating jobs. The renewable energy measure is designed to provide concessional financing for citizens, private sector firms and other institutions to acquire renewable energy systems, while reducing pressure on the national electricity network and limiting carbon emissions. To improve delivery, the central bank is expanding the number of banks participating in its development-loan programs and introducing arrangements with banks to speed up application assessments, simplify procedures and provide guidance to project owners.
Central Bank of Iraq2026-07-09
Central Bank of Iraq expands MSME and renewable energy financing initiatives and eases borrowing conditions
The Central Bank of Iraq has increased support for two development lending initiatives by raising the ceiling for MSME financing and enhancing financing for renewable energy projects, especially solar systems. It has also adopted new rules to ease borrowing conditions and simplify access to funding. The bank is widening participation by more banks and speeding up loan application processing.