Trade Finance support for Bank of Baghdad has reached $25 million through a new facility. The European Bank for Reconstruction and Development approved the financing arrangement. The facility aims to support Iraqi importers, exporters, and smaller businesses. It can also help companies improve access to financing for international trade. Furthermore, the funding could strengthen connections between Iraqi firms and regional markets. Businesses may also gain better opportunities to participate in wider global supply chains.
The facility comes as Iraqi companies seek more financing options for cross-border commerce. Importers often require funding to purchase goods from international suppliers. Exporters also need financial support when selling products to overseas customers. Therefore, stronger trade financing can help businesses manage these transactions more effectively. The new facility could provide additional capacity for banks serving Iraqi companies. It may also support businesses seeking to expand their activities beyond Iraq.
Technical assistance will accompany the financing arrangement through support from the European Commission. This assistance will focus on strengthening banking expertise and improving financial services. It will also seek to expand access to financing for businesses and other groups. Particular attention will support women and other populations facing greater barriers to finance. Consequently, the program combines financial resources with efforts to strengthen banking capabilities.
Representatives from both financial institutions signed the agreement. Catarina Bjorlin Hansen, the EBRD’s Head of Iraq, represented the development bank. Ahmed Muallah, Chief Executive Officer of Bank of Baghdad, represented the Iraqi lender. Their agreement establishes a new channel for supporting trade-related financing in Iraq. The partnership also connects local banking services with international financial support. As a result, Iraqi companies could gain broader access to tools for international commerce.
Trade Finance can play an important role as Iraqi businesses seek international markets. Companies need reliable financial arrangements when they import products or export goods. Access to funding can help businesses manage payments and other trade requirements. It can also support companies as they develop relationships with foreign suppliers and customers. Meanwhile, smaller enterprises often face greater challenges when seeking commercial financing. Additional banking support could therefore help more businesses participate in cross-border trade.
Bank of Baghdad has operated in Iraq’s private banking sector since 1992. The bank provides commercial and corporate banking services to customers across the country. Its long operating history gives it an established position within Iraq’s financial sector. The bank also has links to Kuwait-based Burgan Bank, which became its main shareholder in 2009. Through its banking network, the institution serves businesses with different financing and commercial requirements.
The new facility arrives as Iraq continues developing its private banking sector. Authorities and financial institutions have sought stronger connections with international financial markets. At the same time, Iraqi businesses increasingly need financing for expansion and international trade. Small and medium-sized enterprises remain an important part of this effort. Better access to financial services could help these companies reach new customers and suppliers.
Trade Finance also supports closer integration between Iraqi companies and regional markets. Businesses can use financing facilities to manage transactions across different countries. This process can help companies build stronger supply chain relationships. It can also support greater participation in international commercial networks. The new facility therefore represents an additional financing channel for Iraqi businesses. Meanwhile, technical assistance could strengthen the banking services supporting these transactions.
Iraq joined the EBRD as a shareholder in 2023. Since then, the country has gained access to the institution’s investment activities. The latest agreement expands that relationship through support for trade-related banking services. It also reflects continued international interest in strengthening Iraq’s private sector. For Iraqi importers, exporters, and smaller companies, improved financing could support future commercial expansion. The facility therefore adds another tool for businesses seeking greater access to international markets.
