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Sovereign guarantees...a trend that promotes national industries
Economical 11/04/2024
Baghdad: Hussein Thaghab
Economic circles described the provision of sovereign guarantees, which was presented during the Iraq Economic Forum, and was held under the patronage of the Prime Minister, as an important and necessary matter in attracting major investments to Iraq with its capital and advanced technology.
The forum focused on the issue of providing sovereign guarantees to private sector companies, which aim to Obtaining financing from international institutions, knowledge of the Central Bank, and working to develop the industrial sector and reduce imports.
Head of the Sovereign Loans Initiative, Muhammad Sahib Al-Daraji, reviewed the reality of the Sovereign Guarantees Initiative, which was included in the three-year budget law, and includes selecting priorities through a specialized committee that determines the industries included in the initiative.
He focused on the mechanism for Iraqi businessmen to obtain financing for their industrial projects from foreign institutions, with a total value of the projects amounting to 750 million dollars annually, and 85% of the value of the project is financed through the initiative of international institutions from countries with which memorandums of understanding have been signed, including five European countries and Japan.
Provided that the Iraqi investor has 15% of the cost, has international trade relations, and guarantees 25% of the project facilities, and the Iraqi government is the guarantor of payment after two years of project implementation, at a rate of Reduced interest not exceeding 1.5% annually, and the amount is paid via TBI and in Iraqi dinars.
Head of the National Investment Authority, Haider Makiya, said:
Iraq is about to implement a large workload of projects, and this approach will ease the burden of the Ministry of Finance, and will provide financing for these projects with a mechanism that can be described as acceptable by international financial institutions known by the Central Bank of Iraq.
He pointed out that the large volume of work makes us welcome such funding, which brings great benefit to Iraq.
Member of the Iraqi Businessmen Union, Ahmed Maklaf, said:
The government issued, in accordance with the Federal Budget Law 2023-2024-2025, the sovereign guarantees initiative to support the private sector to finance industrial projects.
85% of the value of the equipment, which enters production factories, provided that this equipment is modern with international specifications, intentionally preserves the environment and increases local production to avoid imports and preserve hard currency, which leaves Iraq to import various consumer products and Iraq’s promises to self-sufficiency for all basic industries.
The government issued this important project, which industrialists consider to be a golden initiative that will develop the industrial field quickly and regularly.
Economist Dr. Salwan Al-Nouri described sovereign guarantees as an important factor in bringing quality investments to the national labor market. He added that
Iraq represents an important interface for specialized international companies, which have come to realize that the volume of work in Iraq is large and broad and accommodates major local and international efforts. He pointed out that
guarantees are one of the most important requirements that bring capital and advanced technology to the national labor market, which can achieve a major shift within the field of the national economy searching for real quality investments.
In turn, the specialist in economic affairs, Qasim Al-Maliki, stated:
Guarantees can achieve integration in the investment sector between the Iraqi field of work and the qualitative investment effort wishing to work in Iraq. He cautioned that
if guarantees are available for investments, we must choose companies that have
weight in the global economy,
have a name in the labor market, and most importantly, that they
specialize in the field of implementation, within which they intend to work. He stressed
the importance of organizing the investment process in the country, pointing to the importance of forming a specialized body that facilitates executive procedures and keeps them away from complexity.
In return, investment companies are required to implement them within the times specified in the referral decision and within the required specifications.
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Economical 11/04/2024
Baghdad: Hussein Thaghab
Economic circles described the provision of sovereign guarantees, which was presented during the Iraq Economic Forum, and was held under the patronage of the Prime Minister, as an important and necessary matter in attracting major investments to Iraq with its capital and advanced technology.
The forum focused on the issue of providing sovereign guarantees to private sector companies, which aim to Obtaining financing from international institutions, knowledge of the Central Bank, and working to develop the industrial sector and reduce imports.
Head of the Sovereign Loans Initiative, Muhammad Sahib Al-Daraji, reviewed the reality of the Sovereign Guarantees Initiative, which was included in the three-year budget law, and includes selecting priorities through a specialized committee that determines the industries included in the initiative.
He focused on the mechanism for Iraqi businessmen to obtain financing for their industrial projects from foreign institutions, with a total value of the projects amounting to 750 million dollars annually, and 85% of the value of the project is financed through the initiative of international institutions from countries with which memorandums of understanding have been signed, including five European countries and Japan.
Provided that the Iraqi investor has 15% of the cost, has international trade relations, and guarantees 25% of the project facilities, and the Iraqi government is the guarantor of payment after two years of project implementation, at a rate of Reduced interest not exceeding 1.5% annually, and the amount is paid via TBI and in Iraqi dinars.
Head of the National Investment Authority, Haider Makiya, said:
Iraq is about to implement a large workload of projects, and this approach will ease the burden of the Ministry of Finance, and will provide financing for these projects with a mechanism that can be described as acceptable by international financial institutions known by the Central Bank of Iraq.
He pointed out that the large volume of work makes us welcome such funding, which brings great benefit to Iraq.
Member of the Iraqi Businessmen Union, Ahmed Maklaf, said:
The government issued, in accordance with the Federal Budget Law 2023-2024-2025, the sovereign guarantees initiative to support the private sector to finance industrial projects.
85% of the value of the equipment, which enters production factories, provided that this equipment is modern with international specifications, intentionally preserves the environment and increases local production to avoid imports and preserve hard currency, which leaves Iraq to import various consumer products and Iraq’s promises to self-sufficiency for all basic industries.
The government issued this important project, which industrialists consider to be a golden initiative that will develop the industrial field quickly and regularly.
Economist Dr. Salwan Al-Nouri described sovereign guarantees as an important factor in bringing quality investments to the national labor market. He added that
Iraq represents an important interface for specialized international companies, which have come to realize that the volume of work in Iraq is large and broad and accommodates major local and international efforts. He pointed out that
guarantees are one of the most important requirements that bring capital and advanced technology to the national labor market, which can achieve a major shift within the field of the national economy searching for real quality investments.
In turn, the specialist in economic affairs, Qasim Al-Maliki, stated:
Guarantees can achieve integration in the investment sector between the Iraqi field of work and the qualitative investment effort wishing to work in Iraq. He cautioned that
if guarantees are available for investments, we must choose companies that have
weight in the global economy,
have a name in the labor market, and most importantly, that they
specialize in the field of implementation, within which they intend to work. He stressed
the importance of organizing the investment process in the country, pointing to the importance of forming a specialized body that facilitates executive procedures and keeps them away from complexity.
In return, investment companies are required to implement them within the times specified in the referral decision and within the required specifications.
[You must be registered and logged in to see this link.]
