The Iraqi Central Bank issued a statement and announced a considerable amount of increase in the number of beneficiaries of initiative 1 trillion Iraqi dinars assigned to support medium and small enterprises. The CBI has shown its keenness to participate and support the Iraqi economy. The bank is continuously monitoring the results of its launched initiatives. It is noteworthy that the Central Bank of Iraq launched and financed initiative of 1 trillion Iraqi dinars at the end of 2015.
The amount was allocated for financing medium and small enterprises. The major objective was to encourage young people to invest in the industrial, commercial, agricultural, and service fields through loans between the range of 5 to 50 million Iraqi dinars. Point to be noted that there are exceptions in making the loan amount of up to the limit of 100 million Iraqi dinars. These are the exceptions associated to the feasibility of the project and its capability of the project and strength to operate the labor force.
The Iraqi finance ministry also announced of signing a loan with JICA (Japan International Cooperation Agency) for Iraq amounted at more than 1 billion U.S dollars for 40 years, including 10 years grace. The loan will be paid back in semi-annual installments during 30 years time period. The interest rate will be 0.2% Improve the quality of oil derivatives. The Ambassador of Japan to Iraq Naofumi Hashimoto, the Advisor to the Prime Minister for Finance, and Finance Minister of Iraq Fuad Mohammed signed and exchanged notes in Baghdad on the provision of the Japanese yen for a refinery development project $ 1 billion.
The loan amount is one of the largest amounts allocated by the Government of Japan to a single loan project in the Middle East and North Africa. The project will increase the production of oil through the establishment of a new refinery. The project aims at increasing the quality of oil products and bridging the gap between supply and demand. In addition, the new plant will reduce the environmental burden by introducing the diluted sulfur desulfurization unit with the transfer of technology.