International Labour Organization Participates in Eighth International Arab Guarantees Conference in Baghdad

The Iraqi Company for Bank Guarantees extended invitations to Arab guarantee entities for this significant conference. The event featured a comprehensive presentation on the Iraqi Company for Bank Guarantees, followed by sessions discussing the impact of credit guarantees on economic development and the integration of financial institutions and guarantee companies in conflict areas and innovations in credit guarantee programs.

In his speech, Dr. Ammar Hamad Khalaf, Deputy Governor of the Central Bank of Iraq, emphasized the importance of the conference in promoting cooperation and achieving a comprehensive and sustainable vision of partnership in the banking sector. He highlighted that the development of the banking sector and the increase in credit availability depend on providing adequate guarantees for SMEs. Dr. Khalaf also revealed that the CBI has prepared a diverse strategy to strengthen the capacities of the Iraqi Company for Bank Guarantees, including the establishment of a committee from the CBI as a member of the Private Banks League to improve the company’s performance.

The ILO focuses on its intervention to the economic development in Iraq on credit guarantees. Currently, the ILO is implementing three projects aim to enhancing access to finance and promoting SMEs across Iraq. These projects include PROSPECTS, funded by the Kingdom of the Netherlands; the Promotion of the Development of SMEs in Iraq, funded by KfW; and Green Business Promotion, funded by the Italian Agency. Dr. Maha Kattaa, ILO Country Coordinator, stated, “Credit guarantee is the pillar and catalyst for economic growth and job creation, which are part of the Decent Work Country Program in Iraq.”

During a panel discussion, Marc Andre Hensel, KfW Office Manager in Iraq, addressed the economic development priorities for Iraq. He emphasized that promoting and developing credit guarantees is essential for enhancing the private sector. “Credit guarantees will allow banks to lend more and risk less, leading to better access to finance opportunities for SMEs,” he said.

Mr. Hussein Thamer, the Director General of the Iraqi Company for Bank Guarantees, expressed his enthusiasm for the future, stating, "The Iraqi Company for Bank Guarantees is revealing another chapter with the upcoming collaboration with the ILO Promoting the Development of SMEs in Iraq project. There will be a new version of the ICBG 2.0 in the upcoming phase." This collaboration promises to usher in a new era of enhanced support for SMEs, leveraging innovative strategies and robust frameworks to ensure greater access to finance and sustainable growth for small and medium enterprises across Iraq.

The conference underscored the critical role of credit guarantees in fostering economic stability and growth, particularly in conflict-affected areas, and highlighted the collaborative efforts needed to support SMEs and drive sustainable development in Iraq.