EBRD and EU boost trade finance in Iraq

• EBRD provides US$ 25 million trade financing facility to Bank of Baghdad
• Facility to support trade and expand access to financing for Iraqi businesses engaged in cross-border trade, including MSMEs
• EU-backed technical cooperation will strengthen banking skills and promote financial inclusion

The European Bank for Reconstruction and Development (EBRD) is boosting trade finance in Iraq by providing a limit of up to US$ 25 million (€21.3 million) to Bank of Baghdad, one of Iraq’s leading private-sector banks.

This facility is provided under the EBRD’s Trade Facilitation Programme (TFP) and will support the Bank of Baghdad in increasing its import and export transactions and expanding its network of correspondent banking relationships.

The investment will help address trade finance gaps in Iraq, increase access to trade finance for micro, small and medium-sized enterprises (MSMEs) engaged in cross-border trade and strengthen commercial links with regional and international markets.

EBRD-funded technical cooperation (TC) will offer advisory support, specialised training, participation in the EBRD Trade Finance e-Learning Programme and workshops covering key trade finance topics.

In parallel, the European Union (EU) will finance the development of a dedicated training curriculum for the Bank of Baghdad, focused on core and advanced banking competencies, helping to enhance staff skills, strengthening service delivery and supporting the continued development of Iraq’s banking sector. The programme will also promote greater financial inclusion through a dedicated training module on expanding access to financial services for underserved groups, including women.

The Bank of Baghdad is one of the top three private banks in Iraq, with total assets of US$ 2.2 billion at the end of 2025 and a network of 35 branches across the country. The bank is listed on the Iraq Stock Exchange and is majority owned by Jordan Kuwait Bank, a subsidiary of KIPCO, one of the region’s leading financial groups.

The EBRD’s TFP programme was launched in 1999 to promote international trade in the form of guarantees and short-term loans to selected participating banks and factoring companies for on-lending to local exporters, importers and distributors.

The EU is the largest provider of official development cooperation to Iraq. Economic diversification, investment, trade and social development are at the core of the longstanding EU-Iraq partnership.

The EBRD began operations in Iraq in September 2025, focusing on private-sector development to improve access to finance, promote local entrepreneurship and foster sustainable long-term economic growth.