Iraq prepares lending program for small businesses with state and private banks

BAGHDAD, Iraq — Iraq's Ministry of Labour and Social Affairs is preparing to launch a new commercial lending program in cooperation with state and private banks, targeting small businesses in the manufacturing and service sectors. The initiative is designed to support the private sector and create new employment opportunities, according to Osama Majid al-Haffaf, head of the ministry's Department of Labour and Vocational Training, in comments to the official gazette. Al-Haffaf said the ministry is developing new mechanisms to identify eligible borrowers and that the program forms part of government policy to position the private sector as a key partner in economic development. The ministry is coordinating with the International Labour Organization and working jointly with banks to expand the financing base and support entrepreneurship, he added. The official described the partnership with the banking sector and the ILO as an important step toward providing genuine employment opportunities for young people and the unemployed. He said the program's technical and administrative procedures are nearing completion, with beneficiary selection criteria to be finalized and financing applications set to be streamlined. No further details on the launch date or scale of the lending program were immediately available.