The European Bank for Reconstruction and Development has announced its first Iraq investment, extending a $100 million trade finance facility to the National Bank of Iraq to support import and export activities.
The facility, provided under the EBRD’s Trade Facilitation Program, will enable the National Bank of Iraq, the country’s largest private bank, to issue guarantees and offer cash advances for imports, exports, and the local distribution of goods.
The bank said the initiative is expected to strengthen trade flows and improve access to finance for businesses across Iraq.
Ayman Abu Dhaim, chief executive of the National Bank of Iraq, said the partnership marks an important step for both the bank and the wider financial sector.
He said the facility aims to enhance trade activity, support Iraqi businesses, particularly micro, small, and medium-sized enterprises, and help connect the country more securely with global markets.
The EBRD said the facility will also contribute to greater trade integration by reducing political and commercial payment risks associated with international transactions in countries where the bank operates.
Catarina Bjorlin Hansen, EBRD Head of Iraq, said the agreement represents a significant milestone in the bank’s engagement with the country.
She said the investment reflects the EBRD’s commitment to supporting Iraq’s economy by expanding trade finance, encouraging closer integration with international markets, and strengthening the resilience of local businesses.
She added that the bank looks forward to helping build robust financial institutions and promote sustainable economic growth in Iraq.
The EBRD’s Trade Facilitation Program was launched in 1999 to promote international trade in the bank’s regions of operation through guarantees and short-term loans.
The European lender began working in Iraq in September, with a focus on supporting local businesses and fostering long-term growth as part of the country’s broader economic transformation.
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