EBRD announces first investment in Iraq

• The EBRD launches its first investment in Iraq
• US$ 100 million trade finance extended to National Bank of Iraq
• Financing to boost trade finance access for MSMEs and strengthen integration with international markets

The European Bank for Reconstruction and Development (EBRD) has launched its first investment in Iraq, providing a US$ 100 million trade finance facility to the National Bank of Iraq (NBI), the country’s largest private bank.

This new trade finance limit will contribute to boosting the country’s import and export activities. It will support the NBI’s trade finance operations by issuing guarantees to confirming banks and offering cash advances for imports, exports and the local distribution of goods under the EBRD’s Trade Facilitation Programme (TFP).

The facility will also promote greater trade integration in Iraq by extending guarantees and credit lines to mitigate political and commercial payment risks associated with international transactions undertaken by partner banks in the economies where the EBRD works.

The investment will improve access to finance for micro, small and medium-sized enterprises (MSMEs) and facilitate intra-regional trade. It will also help the NBI diversify its correspondent banking relationships and strengthen trade finance links with other EBRD countries of operation.

EBRD Head of Iraq, Catarina Bjorlin Hansen, said: “We are proud to sign our first investment in Iraq and to partner with the National Bank of Iraq. This facility represents a major milestone in supporting the country’s economy by expanding access to trade finance, fostering integration with international markets and strengthening the resilience of local businesses. We look forward to playing a key role in building robust financial institutions and promoting sustainable economic growth in Iraq.”

Ayman Abu Dhaim, CEO of the National Bank of Iraq, said: “This partnership with the EBRD marks a pivotal milestone in NBI’s growth journey and in Iraq’s broader financial landscape. Through this facility, we aim to strengthen the flow of trade, empower Iraqi businesses, especially MSMEs, and open new channels that connect Iraq to global markets with greater confidence and stability. It reflects our continued commitment to driving economic development and supporting Iraq’s integration into the regional and international economy.”

The EBRD TFP was launched in 1999 with the aim of promoting international trade between the economies in the Bank’s regions, in the form of guarantees and short-term loans to selected participating banks and factoring companies.

The NBI is the largest private bank in Iraq and a universal bank with activities in retail, SME and corporate banking, trade finance, and treasury services. Established in 1995, it is majority-owned by the Capital Bank of Jordan, an EBRD client since 2015.

The EBRD began operations in Iraq in September 2025, focusing on the private sector to unlock access to finance, promote local businesses and foster sustainable, long-term growth, contributing to the transformation of the country’s economy.