TBI, Commerzbank ink €100m loan deal for SMEs
Facility to help Iraq’s small businesses buy supplies, machinery at decent repayment terms
The Trade Bank of Iraq (TBI) yesterday signed a €100 million (Dh424 million) loan agreement with Commerzbank to support small and mediumsized projects in Iraq and boost the economy, top executives of the two banks said in Abu Dhabi.
“This loan agreement will enable us to provide support for SMEs in Iraq as they have a big role to play in the economic upturn in Iraq by driving... growth,” said Faisal Al Haimus, chairman and president of TBI.
“Thanks to the backing of Euler Hermes, funds will be transferred directly by Commerzbank to suppliers from Germany and other European countries, ensuring the success of the suitable projects we identify. The SMEs will get access to the supplies and machinery with excellent repayment terms.”
The agreement was signed at TBI’s representative office in Abu Dhabi Global Market yesterday in the presence of senior executives from Commerzbank and Germany’s export credit insurer Euler Hermes. Trade Bank of Iraq is approved by Euler Hermes as a borrower for medium and long-term export credit agency financing with repayment terms of up to five years.
Al Haimus told Gulf News in an interview that the government of Iraq is focusing on growing the private sector business and has allocated about $2 billion (Dh7.35 billion) to support small to medium sized enterprises.
On the expansion plans of the bank, he said they would be opening a branch in Saudi Arabia in the first quarter of 2019.
This year, the bank which has 25 branches across Iraq, is targeting $1 billion (Dh3.67 billion) in revenue from $755 million in 2017.