The US Agency for International Development (USAID)-Tijara, an economic growth organization with a five-year mandate to promote private sector growth and employment in Iraq, has released a statement announcing the establishment of Iraq’s 100th microfinance branch location. According to a press release, the milestone “underscores the success Iraq’s MFI sector has achieved in its drive to provide wider access to inclusive, quality financial services across the country” [1]. The Iraqi microfinance sector has at least 14 microfinance institutions (MFIs) serving 62,000 borrowers located in Iraq’s 18 provinces. These MFIs have a total outstanding loan portfolio equivalent to USD 84 million. Since 2003, they have lent the equivalent of USD 420 million to borrowers. As of June 2010 the percentage of at-risk loans is reportedly less than one percent of the total portfolio [1]. The local microfinance industry had a cumulative growth rate of 32 percent between 2004 and 2010.

By Julia Korn, Research Associate

About USAID-Tijara:

USAID-Tijara is an initiative to promote private sector growth and employment in Iraq. It aims to foster the growth of micro-, small and medium-sized enterprises (MSMEs) to support development of sustainable and efficient financial institutions. It provides governance, financial services, policy advocacy and technical services. The organization is listed on MIX Market, but there is no financial data offered.

About The Central Bank of Iraq (CBI):

The Central Bank of Iraq (CBI) oversees 7 state banks, 22 private banks, 7 Islamic banks, 4 foreign banks and 3 financial institutions. It issued total currency of approximately IQD 228 million (USD 195,000) in 2008.

Sources and Additional Resources:

[1] USAID Iraq and Tijara Press Release. “Iraqi Microfinance Industry Opens 100th Branch Office” on June 6, 2010.

For a suite of tools intended to improve the impact of USAID microenterprise programs, you may visit www.microLINKS.org.

MicroCapital Universe: USAID-Tijara. http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=USAID-Tijara

MicroCapital Universe: The Central Bank of Iraq. http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Iraq

Iraq Microfinance Industry. www.IMFI.org

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