The Prime Minister’s Office has officially confirmed a landmark memorandum signed today, Monday, between the Iraqi Trade Bank (TBI) and the Japanese International Cooperation Agency (JICA) with the objective of bolstering the performance of Iraqi companies.
According to a statement issued by the Prime Minister’s Media Office and received by the Iraqi News Agency (INA), the memorandum of cooperation underscores the government’s commitment to supporting the private sector with sovereign guarantees.
The signing ceremony, held under the auspices of Prime Minister Muhammad Shia’ al-Sudani, was attended by various high-ranking officials including the Vice President of the Council of Ministers, the Minister of Planning Muhammad Tamim, and the technical advisor to the Prime Minister, Muhammad Sahib Al-Daraji, who chairs the Diwani Order Committee for Sovereign Guarantees.
Notably, the collaboration between TBI and JICA falls under the General Budget Law for 2023 and Cabinet Resolution No. (23404) for the same year.
The agreement stipulates the provision of Japanese Foundation financing for projects within the Iraqi private sector, focusing on establishing local factories across various industries such as pharmaceuticals, construction, chemicals, petrochemicals, energy, agriculture, and food.
These initiatives align with the government’s strategy to bolster and localize strategic industries, as per the Prime Minister’s directives.
Outlined in the memorandum is an initial funding amount of $200 million aimed at supporting essential projects that serve the Iraqi economy and citizens. This funding is expected to curtail foreign imports and mitigate the outflow of hard currencies.
Furthermore, the memorandum seeks to enhance the competitiveness of Iraqi businesses globally through collaborations with international banks for financing opportunities and the establishment of quality control mechanisms through partnerships with major industrial nations.
