EBRD Makes First-Ever Investment In Iraq With $100 Million Trade Finance Facility For National Bank Of Iraq To Support Sustainable Private-Sector Growth

The European Bank for Reconstruction and Development (EBRD) has made its first-ever investment in Iraq by approving a US$100 million trade finance facility for the National Bank of Iraq (NBI), the country’s largest private bank. This marks an important step in EBRD’s engagement with Iraq and reflects its commitment to supporting the country’s economic development through the private sector.

The new trade finance facility is expected to support Iraq’s import and export activities by strengthening NBI’s ability to provide trade finance services. Under the EBRD’s Trade Facilitation Programme, the facility will allow NBI to issue guarantees to confirming banks and provide cash advances for imports, exports, and the local distribution of goods. These measures will help reduce barriers to trade and improve the flow of goods across borders.

The facility will also play a key role in promoting greater integration of Iraq into regional and international trade networks. By extending guarantees and credit lines, it will help reduce political and commercial payment risks linked to international transactions carried out by partner banks in EBRD’s countries of operation. This risk mitigation is expected to encourage stronger trade relationships and increased confidence among international trading partners.

In addition, the investment will improve access to finance for micro, small, and medium-sized enterprises in Iraq. By supporting trade activities and easing access to credit, the facility will help local businesses expand their operations and participate more actively in regional trade. It will also support NBI in diversifying its correspondent banking relationships and strengthening its trade finance connections with other countries where the EBRD operates.

Commenting on the investment, EBRD’s Head of Iraq, Catarina Bjorlin Hansen, said the signing of the bank’s first investment in Iraq is a significant milestone. She noted that the partnership with the National Bank of Iraq will help expand access to trade finance, strengthen links with international markets, and improve the resilience of Iraqi businesses, while also supporting the development of strong financial institutions and sustainable economic growth.

Ayman Abu Dhaim, Chief Executive Officer of the National Bank of Iraq, said the partnership represents an important step in the bank’s growth and in the evolution of Iraq’s financial sector. He highlighted that the facility will help strengthen trade flows, support Iraqi businesses—particularly MSMEs—and create more reliable connections between Iraq and global markets, contributing to broader economic development and integration.

The EBRD’s Trade Facilitation Programme was launched in 1999 to support international trade across the bank’s regions of operation. It does so by providing guarantees and short-term loans to selected banks and factoring companies, helping them manage trade-related risks and expand cross-border trade activities.The National Bank of Iraq, established in 1995, is the country’s largest private bank and operates as a universal bank with services spanning retail, SME and corporate banking, trade finance, and treasury operations.

The bank is majority-owned by the Capital Bank of Jordan, which has been an EBRD client since 2015.The EBRD began its operations in Iraq in September 2025, with a focus on supporting the private sector to improve access to finance, strengthen local businesses, and promote sustainable, long-term economic growth. Through investments such as this, the EBRD aims to contribute to the broader transformation and resilience of Iraq’s economy.